Shareholders of International Biotechnology Trust (IBT) may soon start to get a decent income yield after the fund announced plans to start paying dividends. Investors will vote on the move at the general meeting on 29 September.

The intention is to return 4% of the fund’s net asset value (NAV) each year, with the calculation made on 31 August. If the plan is approved, the first payment could be made in January 2017.

The shares presently trade at 494.6p and the NAV was 576p at the end of August 2016. That implies the fund will pay 23.04p per share dividend equal to a 4.7% prospective yield.

Shareholders will also vote on allowing the £217 million collective to invest in biotech-focused funds. It already invests in private companies and adding funds to the portfolio will provide greater access to unquoted businesses.

The fund has a good performance record despite falling 9% in value over the past 12 months. Its price is up 76.7% over the past three years and 243.6% up over a five-year period, according to Trustnet data.

International Biotechnology Trust is a diversified play on the healthcare and life sciences market. The potential dividend makes it even more appealing.