Threadneedle Investments has unveiled its first sector fund, the Threadneedle global healthcare fund.
This Oeic will contain between 30 and 40 stocks. It aims for capital growth by investing in biotechnology, pharmaceuticals, healthcare providers, medical supply companies and companies which manufacture medical devices.
Forsyth McGarrity will run the fund and will combine a top-down and bottom-up approach to stock selection. He will draw on research provided by a team of global analysts and analysts who look at healthcare from a regional perspective.
McGarrity has 15 years experience of managing funds and is currently Pan European pharmaceuticals analyst at Threadneedle. He joined the company in 1994, having previously worked at Allied Dunbar and Norwich Union.
Threadneedle sees healthcare as an important sector going forward because the demand for healthcare will be fuelled by an ageing population.
The healthcare sector is going through a difficult period at the moment. The US Food and Drug Administration will not approve medicines easily because of concerns about possible side effects and some pharmaceutical companies are facing the problem of expiring patents, which affects profits.
The Threadneedle global healthcare fund will widen investors choice, as there are few funds in this market. It is likely to be of interest to sophisticated investors who are prepared to ride out a short-term storm in the pursuit of rewards over the long-term.
According to Standard & Poors, the Threadneedle Pan European growth fund is ranked five out of 14 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to June 28, 2002.