Framlington Unit Management is taking the pulse of the specialist market with its new biotech fund.
Biotech is a unit trust aimed at experienced investors who are looking for a high-risk product for their portfolios.
The fund will invest in a portfolio of 80 biotechnology companies, the majority of which are based in the US and the others dotted around the globe. The companies chosen will be well-established and involved in the research and development of biotechnology products only.
All the companies chosen will either be involved in late stage technical trials or will be applying for registration of new drugs and treatments for serious diseases such as HIV and cancer. In order to minimise the risk, companies with more than one upcoming product will be picked.
The fund will be managed by Antony Milford who has been in charge of the Framlington health fund since 1989 and he will be advised by a panel of healthcare experts.
Framlington has introduced the fund at a time when prices are low and it could pick up some good value stocks. However, investors should look at this fund with an eye on the long-term as, as over the short-term it could prove to be too volatile for most. But one attraction of the biotechnology market is that in a world with an aging population, the need for medical advancement and drugs will increase in years to come.
According to Standard & Poors the Framlington health fund is ranked 3 out of 23 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to October 22, 2001.