CT Healthcare Trust interim results: dividend set as new strategy makes a positive start

CT Healthcare Trust PLC (LSE: CTHT) has reported a modest first-half decline, but the more important development is the performance since Columbia Threadneedle Investments took over management on 5 March 2026.

The trust's net asset value, or NAV, produced a total return of 1.7% from that date to 31 May. Its share price delivered 5.3%, while the MSCI World Healthcare Index fell 4.9% in sterling terms.

That is only a short measurement period, so investors should avoid drawing firm conclusions. Even so, it is an encouraging opening for the trust's new absolute return strategy.

A further interim dividend of 2.565p per share has also been declared. The full details are available in the original company announcement.

CT Healthcare Trust's key figures

Measure	Half-year to 31 May 2026	Since 5 March 2026	Half-year to 31 May 2025
NAV total return	-1.1%	1.7%	-19.9%
Share price total return	-2.0%	5.3%	-13.8%
MSCI World Healthcare Index total return	-5.1%	-4.9%	Not disclosed
NAV per share	142.23p	Not disclosed	121.11p
Total earnings per share	-4.72p	Not disclosed	-33.22p
Net assets	£79.0 million	Not disclosed	£238.3 million

For the full six months, CT Healthcare Trust's NAV total return was -1.1%, while its share price total return was -2.0%. Both figures were ahead of the healthcare index's 5.1% decline.

The comparison needs some care. The MSCI World Healthcare Index is used as a reference point rather than a formal benchmark because the trust is no longer trying to remain fully exposed to rising healthcare markets.

What changed in March?

Columbia Threadneedle Investments became CT Healthcare Trust's manager on 5 March 2026. The portfolio is now run using an absolute return approach, which aims to produce positive returns with less volatility than healthcare equity markets.

Its targeted net market exposure is between 0% and 50%. Put simply, the manager can offset some long positions, which benefit when share prices rise, with short positions designed to benefit when prices fall.

At 31 May, long investment positions totalled £58.3 million and short positions totalled £38.6 million. Their net position was recorded as investments worth £19.7 million.

This structure explains why the trust held £58.7 million in cash and cash equivalents, including £57.9 million held with its broker as collateral against short positions. Investors should not therefore treat the reported cash balance as an idle cash pile waiting to be invested.

The ability to take both long and short positions could help when individual healthcare stocks move in very different directions. However, short selling adds its own risks and can magnify losses when a position moves against the manager.

Dividend dates and yield

The board has declared an interim dividend of 2.565p per share. It will be paid on 18 September 2026 to eligible shareholders on the register on 28 August, with an ex-dividend date of 27 August.

Dividend detail	Figure or date
Interim dividend	2.565p per share
Ex-dividend date	27 August 2026
Record date	28 August 2026
Payment date	18 September 2026
Stated dividend yield	3.8%

The stated 3.8% yield is based on the 139.6p closing share price on 13 August 2026 and combines the forthcoming 2.565p payment with the 2.7p dividend paid on 29 May.

The trust's policy is to target an annual dividend equal to 3.5% of the preceding year-end NAV. Capital growth is now the primary objective, meaning shareholders should not assume the dividend will be covered by portfolio income alone.

Indeed, the revenue return was a loss of £305,000 for the half-year, compared with a £451,000 profit a year earlier. The revenue reserve stood at a negative £2.4 million.

For another example of how an investment trust's NAV and dividend can move differently, see the Athelney Trust half-year results.

Buybacks, the discount and tender offers

CT Healthcare Trust's shares traded at an average 6.6% discount to NAV during the period and finished the half-year at a 5.1% discount. A discount means the shares trade below the value of the underlying net assets per share.

The company bought back 19,673,474 shares during the six months, excluding its March tender offer. The pace of buybacks slowed materially after the management change.

Its first quarterly tender offer also resulted in 15% of the company being acquired at a 1.7% discount to the prevailing NAV. Tender offers allow qualifying shareholders to sell some shares back to the company under specified terms.

These measures can provide an exit route and support the share price discount. The trade-off is that the trust has become substantially smaller. Net assets fell from £134.9 million at 30 November 2025 to £79.0 million at 31 May 2026, with buybacks and shareholder distributions playing a major role alongside investment performance.

Where the manager sees opportunities

The portfolio remains focused on selected biotechnology companies with identifiable catalysts and potential takeover appeal. The manager is also adding selectively to life-science equipment providers, contract research organisations and medical technology businesses that may be entering a recovery.

Within large pharmaceutical companies, the strategy combines innovative businesses with lower-valued legacy companies that may attract merger and acquisition interest. It remains selective towards crowded GLP-1 stocks, which are associated with diabetes and weight-loss treatments.

The manager is more cautious about fragile micro-cap companies without clear catalysts. It also sees less upside in managed care following gains of approximately 30%.

Management expects stock selection to become more important because many healthcare share prices are near their highs. Merger and acquisition activity has been a major driver, with first-half deal activity already ahead of the whole previous calendar year, according to the announcement.

The main risks for shareholders

The manager is only moderately positive about healthcare and does not expect the sector's broad rally to continue through the second half of 2026.

Persistently high inflation and interest rates are the clearest concern. Biotechnology and other healthcare businesses can depend heavily on funding, so restrictive borrowing conditions may weaken balance sheets and put valuations under pressure.

Drug pricing uncertainty, trade policy and stretched valuations in parts of the pharmaceutical sector are further risks. The board has also added product strategy to the trust's list of principal risks following the major change in mandate.

What investors should watch next

The early numbers under Columbia Threadneedle are positive, particularly compared with the falling healthcare index. The narrower discount and 5.3% share price return since 5 March are also constructive signs.

However, the new manager's record covers less than three months of this reporting period. Investors still need evidence that the absolute return strategy can deliver consistently after fees and through different market conditions.

The next results should provide a more meaningful test of performance, while the discount, tender offers, dividend funding and effects of the trust's smaller asset base will all merit attention.