View more on these topics

Framlington Isas its biotech fund

Framlington has established the Framlington biotech Isa, a unit-trust based Isa that invests in the company&#39s recently introduced biotech fund.

The Framlington biotech fund aims to produce capital growth by investing in a portfolio of around 70 stocks within the biotechnology, genomics and medical research industries. It is managed by the same team responsible for the Framlington health fund, headed by Antony Milford. He will look for well established companies with drugs and treatments that are undergoing the final trial stages or that are registering their products.

The biotech fund invests worldwide, between 80 and 85 per cent goes into the US, while the rest is invested in Europe including the UK. Most biotechnology companies are based in the US, which explains the country&#39s dominance in a global fund.

As people are living longer and are more conscious of health issues, they are increasingly relying upon medicines and treatments. Without medical research including biotechnology and genomics, which is the study of human genes, it would be difficult to meet this demand.

This makes biotech funds attractive in terms of future growth prospects and as share prices are still low, investors could benefit from price increase when a recovery occurs. However, the fund may be too risky for some investors because this sector is notoriously volatile and there is no guarantee the companies will make it through the trial and registration stages with their products.

According to Standard & Poor&#39s the Framlington healthcare fund is ranked 2 out of 23 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to January 11, 2002.

Recommended

AITC gives tentative welcome to proposals

The AITC has given a tentative welcome to the FSA&#39s consultation on polarisation, applauding the paper&#39s radical nature.Director-general Daniel Godfrey says he was particularly pleased to see the unbundling of the cost of advice from product charges on the paper&#39s agenda.Previously, the AITC has been a staunch supporter of the current polarisation regime. But Godfrey […]

Outside edge – Nick Bamford

Pension rules are complex, there is no doubt about it. This complexity may well be an important contributory factor to a lack of public interest in the subject. At least, a lack of interest until they realise that they may not receive as much retirement income as they need or expect.Who is to blame for […]

Skipton Building Society – Bank Rate Protection Bond

Friday, January 18, 2002.Type: Guaranteed growth bond.Minimum-maximum investment: £2,000-£1m.Term: Until April 14, 2004.Interest rate: 9.25 per cent less Royal Bank of Scotland baserate.Charges: None.Return: Capital returned in full along with 9.25 per cent less RoyalBank of Scotland base rate.Guarantee: Capital returned in full along with 4 per cent grossinterest a year.Commission: None.Tel: 0800 446776.

Leggmason Investors – UK Active Income Isa

Tuesday, January 15, 2002.Type: Unit trust based maxi Isa.Aim: Income and growth by investing in the UK income unit trust andmonthly income unit trust.Minimum investment: Lump sum UK income unit trust £1,000,monthly income unit trust £3,000.Maximum investment: £7,000.Catmarked: No.Investment choice: Client&#39s choice in UK income unit trust andmonthly income unit trust.Charges: Initial UK income unit […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment