CT Healthcare Trust | Columbia Threadneedle Investments

For non-professional investors. Please seek financial advice before making any investment decisions.

Please refer to the Glossary at the end for financial definitions.

Introduction

Columbia Threadneedle is proud to be the investment manager of assets in excess of £9.5bn on behalf of eight Investment Trusts, ranging across public equities, property and private equity¹.

CT Healthcare Trust’s investment strategy aims to capture the upside of healthcare innovation and healthcare trends, whilst offering compelling risk-adjusted returns and capitalising on companies facing structural and clinical headwinds.

The strategy has an emphasis on biotechnology and pharmaceutical companies but will invest across the range of healthcare companies covering all sub-sectors and geographical regions.

¹ As at 5^th March 2026.

Investment process

Most investors highlight healthcare’s groundbreaking innovations shaping diagnostics, AI use, and treatments, alongside aging demographic trends incorporating the standard and financing of care². While these advances are real and extraordinary, our thesis is different: healthcare is one of the best sectors for delivering returns above sector indices (also known as alpha).

The sector exhibits one of the widest dispersions between winners and losers of any industry, amplified by volatility in clinical data and regulatory decisions, which can affect company share prices quickly.

Unlike other areas of the market, success in healthcare investing often requires specialist knowledge and an understanding of complex scientific and clinical information. These complexities make healthcare less accessible to non-specialists and less replicable by AI or purely quantitative models. That inefficiency is opportunity, and the team’s goal is specifically to exploit this environment.

² Source: Morgan Stanley “5 Healthcare Trends from the Industry’s Top Companies” September 2025.

Explaining CT Healthcare Trust’s portfolio approach

The portfolio is managed by investing in companies with strong upside potential and taking positions designed to benefit from underperformance in companies facing structural or clinical challenges.

The team brings specialist technical experience to interpreting complex scientific and medical data, which helps inform their views ahead of study results that can lead to significant movements in company share prices, both positive and negative.

With over 90% of drugs and biotech programs ultimately failing³, the opportunity to benefit from well-researched portfolio positioning is robust. At the same time, established healthcare companies such as med-tech leaders, hospitals, and other secular compounders, provide durable growth and recession-resistant revenue, balancing the higher-risk but high reward profiles of earlier-stage biotech companies.

This blend of innovation‑driven opportunities, disciplined use of positioning, and diversification across healthcare subsectors helps make this dual-directional approach a flexible way to manage risk and return.

³ Source: National Library of Medicine: https://pmc.ncbi.nlm.nih.gov/articles/PMC9293739/ February 2022.

Goals & Objectives

The strategy offers shareholders an equity portfolio with modest net exposure, so overall performance depends more on stock selection than whether the market rises or falls.

Its investment objective is to provide an absolute return by investing in an actively managed portfolio of equities and derivatives (financial contracts whose value is dependent on the value of other instrument(s) such as a stock or bond), with exposure to the global healthcare market.

In doing so, it aims to participate in a majority of the healthcare potential upside while seeking to help manage downside risk.

The strategy has, at times, delivered positive returns in periods when healthcare indices have risen as well as when they have fallen. Its balanced approach, disciplined risk management, and focus on upside and downside targets aim to support performance across different market environments, although this is not guaranteed.

The strategy will be exposed to healthcare and healthcare-related equities, with most exposure being in US-listed companies. Current US weighting in the strategy is in the region of 85-90%, but that may change over time. The balance of the portfolio offers exposure to Europe and Asia.

The team deploys a disciplined portfolio construction: typical characteristics are a gross exposure of 120–165%, and net exposure between 0% and 50%. The top 10 positive positions typically make up 25–30% of the portfolio, while the top 10 negative positions range from 12–18%, balancing conviction with diversification.

Positions are actively managed against strict upside/downside targets, with higher-risk names sized smaller and durable compounders larger.

There will be no comparable benchmark for the portfolio, although we offer related healthcare index performances to aid analysis.

Lead manager & team

The lead manager of our healthcare strategy is Kosta Kleyman who is based in New York, USA. Kosta has a professional Doctorate in Pharmacy (PharmD). He led cancer drug commercialisation and clinical development for seven-years at top-tier pharmaceutical and biotech companies such as Genentech/Roche and AstraZeneca. He began his investment management career at a single manager healthcare-dedicated hedge fund prior to joining Columbia Threadneedle Investments in 2020.

Kosta has developed deep rapport with management teams, thanks to the strong relationships established while working in the healthcare industry, which has helped inform his investment understanding. He is supported by a team of eight analysts, combining deep scientific training with specialised healthcare expertise. The group includes professionals with PhDs, PharmDs, MScs, and so forth, providing the technical foundation to evaluate complex clinical data, regulatory filings and medical literature.

The team is organised with sub-sector specialists across biotech, pharma, med-tech, healthcare services, and treasuries, ensuring comprehensive coverage of the full healthcare landscape. This combination of technical rigour, sector specialisation and scale enhance their ability to identify inflection points, anticipate regulatory outcomes, and underwrite investments with conviction.

Why Columbia Threadneedle Investments for Healthcare?

Primarily, we believe that our domain expertise is a key strength. Kosta and his team have an operating background in biotech and pharma industries meaning they are well positioned to evaluate science, clinical data, and regulatory nuance with a deep perspective. Kosta’s specific experience within industry affords him the insight into what companies are prime targets for mergers and acquisitions, and why. That is invaluable and a core differentiator in a sector where outcomes hinge on technical details.

Second is catalyst orientation. Our edge comes from being able to anticipate outcomes of clinical studies, product launches, Food and Drug Administration (FDA) decisions, and the overall launch trajectories of various medical products. Just as important is also our trade discipline and profit-taking. We are price oriented and are not afraid to exit positions once they reach target prices.

Third is the ability to generate positive returns, and protect shareholders, when share prices decline, by taking targeted single name positions designed to benefit in different environments. These positions are based on alpha-driven ideas intended to outperform the market, rather than to simply adjust overall exposure. This approach has been an important contributor to performance and helps us deliver strong returns with lower volatility.

Portfolio construction

Approximately two thirds of the strategy is focused on biotech or pharma, as this is where many of the opportunities lie, with the balance allocated across other sub-sectors such as med-tech services and tools.

The largest positions are typically 3-4% with higher volatile investments typically sized below 1%.

Risk is managed by maintaining a broad portfolio of multiple positions of smaller size, so no single position can overwhelm performance.

Performance

Performance has shown our investment process has the ability to generate absolute returns, in a risk adjusted manner, that has delivered consistent alpha across different market conditions.

shows cumulative returns for the composite Healthcare strategy, to which the CT Healthcare Trust will be similar, , net of estimated fees⁴, against key relevant market indices, in GBP, since inception.

The composite Healthcare strategy GBP cumulative returns (net of estimated fees⁴) vs selected indices

Source: Columbia Threadneedle Investments & Factset. Inception date is 1^st July 2023. Data as of 31^st December 2025. All data is cumulative total return assuming reinvestment of income and capital gains, net of estimated fees⁴, in GBP. Periods over one year are annualised since inception. Past performance is not a guarantee of future results.

⁴The composite Healthcare data is Net Asset Value performance net of management fee (0.95%), operational expenses (estimated to be 0.46%; the exact cost is dependent on the CT Healthcare Trust’s net assets) and any incentive/performance fee earned (absolute return above costs (0.95% + 0.46%) plus cash, as defined as 3-month SONIA, subject to a high watermark).

	Our Healthcare Strategy	S&P Biotech Index	MSCI World Healthcare NR Index	Russell 3000 Healthcare Index
1-Month Return	-3.1%	-2.1%	-2.2%	-3.0%
3-Month Returns	28.4%	22.2%	10.8%	12.0%
6-Month Returns	48.4%	50.4%	16.3%	19.8%
YTD Returns	54.1%	26.6%	7.5%	6.7%
1-Year Returns	54.1%	26.6%	7.5%	6.7%
2-Year Returns	90.2%	30.4%	11.2%	12.4%
Cumulative Returns	109.0%	40.0%	14.3%	15.2%
July 2023-June 2024	24.4%	12.6%	12.3%	11.1%
July 2024-June 2025	13.2%	-17.3%	-12.5%	-13.4%
July 2025-Dec 2025	48.4%	50.4%	16.3%	19.8%
Annualised Returns	34.3%	14.4%	5.5%	5.8%

Key documents

Annual Report and Accounts
Investor Disclosure Document
Circular
Notice of Annual General Meeting
KID available soon
Factsheet (data as at 31 March) available from April 2026

In summary

1. Our investment process is a diversified approach to global healthcare investing. Its aim is to capture returns from stock selection on both sides of the market, rather than relying solely on broad market direction, with a focus within therapeutics.

2. We blend deep operating expertise and catalyst-driven processes with disciplined exits, utilising a low net exposure strategy that not just acts as a hedge (reducing market risk); it actively generates alpha by seeking to outperform the market.

3. This, combined with disciplined portfolio construction, result in more consistent, uncorrelated returns with lower volatility and attractive risk measurements compared to general healthcare sector indices.

Our investment trust business

We can trace our investment roots back to 1868, when F&C Investment Trust, the world’s oldest collective investment scheme launched, and have been adding to our offering ever since. We currently manage eight Investment Trusts with over £9.5bn in total assets^5, providing a range of investment opportunities including access to equities, bonds, property and private equity. Each trust has different aims and objectives with the option of capital growth, income or a combination of both and with a specific regional focus or with a global remit.

Please visit our dedicated Investment webpage for further information on our range of Investment Trusts. Professional investors can email us on [email protected] or contact your regular Columbia Threadneedle representative for more information.

⁵Source: Columbia Threadneedle Investments as at 5^th March 2026.

There are a variety of ways to contact us

Call us on

New and existing customers:

0345 600 3030 (from UK)

+44 1268 447 407 (from overseas)

Lines open weekdays 9am-5pm

Email us on

New customers:

[email protected]*

Existing customers:

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For professional investors:

[email protected] or contact your Columbia Threadneedle representative.

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Write to us at

Columbia Threadneedle Investment Business Limited PO Box 11114, Chelmsford Essex CM99 2DG, United Kingdom

Glossary

Absolute Return

An absolute return refers to the total profit or loss an investment generates over a period of time, regardless of how the overall market performs.

Unlike traditional funds that aim to beat a market index (like the FTSE 100), an absolute return strategy aims to deliver positive returns in all market conditions – whether markets are rising or falling.

Alpha

The term alpha, with regards to investing, is a measure of an investment’s performance relative to a benchmark index (e.g., the FTSE100 index), representing the excess return or “active return” on an investment. It signifies a portfolio manager’s ability to “beat the market” through skilful stock picking or strategy.

Annualised Returns

Annualised returns show the average yearly return of an investment over a specific period of time, assuming the investment grows at a steady rate each year.

This measure helps investors compare different investments fairly, even if they were held for different lengths of time. It takes into account the effect of compounding, meaning that each year’s return builds on the previous year’s growth.

For example, if you invest £1,000 and it grows to £1,300 over three years, the cumulative return is 30%. The annualised return would show the average yearly growth rate that led to that result – about 9.14% per year.

Annualised returns are useful for understanding long-term performance, but they don’t show short-term ups and downs. Always consider other factors like risk, volatility, and fees when evaluating investments.

Cumulative Returns

Cumulative returns show the total percentage gain or loss of an investment over a specific period of time. They measure how much your investment has grown (or declined) from the starting point to the end of the period, including all profits, losses, dividends, and interest earned.

For example, if you invested £1,000 and it grew to £1,300 over three years, the cumulative return would be 30%. This means your investment increased by 30% in total over that time.

Cumulative returns help you understand the overall performance of an investment, but they do not show how the investment performed on average each year, nor in any individual year. For that, you would look at annualised returns or calendar year returns respectively.

Derivatives

Derivatives are financial contracts that derive their value from an underlying asset, rate, or index, such as stocks, bonds, commodities, or currencies. They are primarily used to hedge risk (manage uncertainty) or speculate on price movements. These, including futures, forwards, options, and swaps, allow investors to gain exposure to markets without owning the actual asset.

Gross & Net Exposure

Gross Exposure refers to the total amount of money invested in both the positive-bias plus the negative-bias positions within a portfolio. It represents the combined value of all investments, regardless of whether they are expected to rise or fall in value.

Gross exposure helps show how actively the portfolio is invested, and a higher gross exposure may indicate a more aggressive investment approach. However, it does not reflect the overall risk to your capital, which is better represented by net exposure and other risk measures.

Risk is managed by maintaining a broad portfolio of multiple positions of smaller size, so no single position can overwhelm performance.

High Watermark

A high watermark in investments is the highest value—specifically the highest Net Asset Value (NAV) per share—that an investment fund or portfolio has reached. It serves as a performance threshold that a fund manager must surpass before they are entitled to charge performance-based fees.

Important information

Your capital is at risk.

This financial promotion is issued for marketing and information purposes only by Columbia Threadneedle Investments in the UK.

The material relates to an investment trust and its Ordinary Shares are traded on the main market of the London Stock Exchange.

The Investor Disclosure Document, Key Information Document (KID), latest annual or interim reports and the applicable terms & conditions are available from Columbia Threadneedle Investments at Cannon Place, 78 Cannon Street, London EC4N 6AG, your financial advisor and/or on our website www.columbiathreadneedle.com. Please read the Investor Disclosure Document before taking any investment decision.

This material should not be considered as an offer, solicitation, advice or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.

In the UK: Issued by Columbia Threadneedle Management Limited, No. 517895, registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

CT Healthcare Trust PLC (CTHT)

Introduction

Investment process