Legal & General has entered the healthcare investment market with its global healthcare and pharmaceuticals unit trust.
The fund is aimed at experienced investors who want to broaden their portfolios with some exposure to the growing market in healthcare research and technology as well as medical drugs.
Tracking the FTSE all-world health and FTSE all-world pharmaceutical indices, the fund will invest in global healthcare and pharmaceutical companies that include Glaxo Wellcome, Pfizer, Biogen and Johnson & Johnson.
Recent advances in healthcare research have led to new advances and treatments, such as Viagra and HIV-suppressing drugs. Funds that invest in the healthcare and pharmaceutical markets therefore tend to be driven by internal developments and are less affected by external market volatility, although they do still have a high degree of risk if a new drug or treatment does not prove to be successful.
According to Standard & Poors the Legal & General worldwide fund is ranked 19 out of 36 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to October 30, 2000.