Schroders Capital Global Innovation Trust plc - INOV H1 Earnings Call Highlights

NAV per share rose 1.3% to 22.53 pence in the first half, while the share price gained 10.5%, narrowing the discount to NAV to approximately 25%. The trust made no new investments as it continued its managed wind-down. Portfolio realizations generated £9.6 million , enabling the planned shareholder tender offer to increase to £28 million from £18 million. Since the wind-down began, the trust has returned or committed to return approximately £66 million through share repurchases and the upcoming tender offer. Management said the wind-down could extend beyond 2028 because exits depend on trade sales and IPOs by minority-owned portfolio companies. Life-sciences exits, including Neurona and Memo Therapeutics, supported performance, while the trust fully exited Autolus and revalued Revolut higher. Schroders Capital Global Innovation Trust plc - INOV LON: INOV reported a 1.3% increase in net asset value per share during the first half of the year as the investment trust continued its managed wind-down strategy, generating cash from portfolio exits and increasing the size of its planned shareholder tender offer. NAV per share rose to 22.53 pence at the end of June from 22.23 pence at the end of December. The share price increased 10.5% over the same period, narrowing the discount to NAV from more than 30% to about 25%, according to the presentation. The trust made no new or follow-on investments during the period, consistent with its wind-down approach. Management said the portfolio is being managed for orderly exits rather than forced sales. Realizations Support Larger Tender Offer The trust generated £9.6 million in realizations during the first half, including proceeds from Bluewater Bio and Autolus Therapeutics, as well as milestone payments associated with previously exited life-sciences holdings. Its planned tender offer was increased to £28 million from £18 million, supported by portfolio cash generation and available resources. The trust had £34.3 million in cash and equivalents at the end of June, representing 24% of NAV. Management said the tender offer is expected to leave a reserve for investments and expenses. Since the wind-down began in the third quarter of 2024, the portfolio has increased in value by 11.8%, while 36% of its starting value has been converted into realizations. The trust started that period with investments valued at just under £137 million, completed £6 million of investments, recorded nearly £17 million in gains and generated £50 million of realizations, leaving a portfolio value of £110 million at the end of the interim period. The trust has repurchased or canceled £38 million of shares to date. Combined with the planned 2026 tender offer, total shareholder returns since the start of the wind-down are expected to reach £66 million. Life Sciences Exits Drive Portfolio Performance Life-sciences investments made a positive contribution to NAV during the period, aided by transactions involving Neurona Therapeutics and Memo Therapeutics. Growth holdings were a moderate detractor, while venture holdings were broadly flat. Public equities made a small negative contribution, principally related to Autolus. Neurona, a developer of cell therapies for neurological disorders, was acquired by UCB in June for $650 million upfront, with potential additional milestone payments. The trust’s investment was valued at 1.5 times its original cost at the end of the period and could rise to 2.4 times if all milestones are achieved. Memo Therapeutics’ lead program was acquired by Ipsen in July for a stated share purchase amount of £200 million, with potential additional payments tied to...