Fidelity Investments new Healthcare fund is a Luxemburg-domiciled Sicav and is a sub fund of a range of Fidelity funds.
Healthcare is aimed at experienced investors who are looking to invest in the general healthcare market and who are prepared to put up with medium to high levels of risk.
The fund will invest in companies around the world that are involved in the design, manufacture and sale of healthcare, biotechnology and medicine products, such as biotechnology company Genentech, which is researching heart attack and cancer drugs, and drug company Glaxo Wellcome. Its aim is to outperform the FTSE global health and FTSE global pharmaceutical indices.
Biotechnology is a growing area of the market, especially due to recent advances in cloning techniques. The increasing numbers of pensioners in developed countries are also having an affect on the healthcare and medicine markets as demand for drugs and treatments increases. This is a volatile field, because many companies involved in this area are often unable to take advantage of their discoveries due to huge development costs, but it can give high returns.
According to Standard & Poors the Fidelity funds international fund is ranked 38 out of 273 funds, based on £1,000 invested on a bid-to-bid basis, with gross income reinvested over three years to September 1, 2000.