Putnam Investments is tapping into the world of medicine with the introduction of the Putnam health sciences equity fund.
Designed for growth, the fund is a Dublin-based open-ended investment company (Oeic) that is targeted at experienced investors who are looking for a fund to add to an existing portfolio.
The fund will mirror the existing US based Putnam health sciences fund, which has been running since 1982. The fund will invest in a wide range of health-orientated industries. Fifty-seven per cent of the fund will be invested in pharmaceutical companies, 16 per cent in biotechnology companies, 14 per cent in healthcare companies and 8 per cent in medical technology companies. The remaining five per cent will be invested in a wide variety of sectors.
Some of the companies that the fund will invest in will include Merck, Johnstone & Johnstone, Astra Zeneca, Medtronic and Schering-Plough.
The health science market is more internally driven than other markets, relying on discoveries that affect the market. The Putnam fund offers little that distinguishes it from other funds available in its sector.
According to Standard & Poors the Putnam health sciences fund is ranked 3 out of 85 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over one year to May 7, 2001.