The Framlington Biotech Fund launched this week with fund manager Anthony Milford praising the ...
The Framlington Biotech Fund launched this week with fund manager Anthony Milford praising the timing of the launch. Milford said the biotech sector offered 'outstanding value' at the moment and extolled the avoidance of launching the fund on the back of a boom in the industry.
Milford added that a number of large pharmaceutical companies are facing patent expirations and have insufficient products in the pipeline to replace them. At the same time, biotechnology companies with late stage compounds are in a sellers market and these large pharmaceuticals are willing to pay considerable sums for a profit share. Milford also expects considerable merger activity in the biotech sector with larger biotech companies buying their smaller and private peers.
The new fund is likely to be volatile, conceded Milford, but he stressed there was nothing in the foreseeable ten years to stop the biotech sector from being a good investment. Milford expects the new fund to perform equally as well as Framlington's flagship Health Fund.
With regard to the current disenchantment in genomes, Milford considers it to be equally as overdone as the excitement present 18 months ago. He stressed that the utilisation of genomes will be an eight to ten year process.
The biotech fund's objective is to provide medium to long term capital appreciation by investing principally in equity securities of companies in the biotechnology, genomic and medical research industries worldwide. It will spread risk investing in up to 70 companies. Of these at least 80% will be US companies but this is not an overt bias bearing in mind that 400 of the 500 or so publicly listed biotech companies are from the US, with the rest based in the UK and Europe.
There is a 1.5% discount on lump sum investments made in the initial offer period, which closes on 26 November, while Framlington Health Fund clients are offered a 1.75% discount over this time. There is a minimum subscription of a £1000 lump sum or £50 per month. The initial offer price is 50p per unit.
More information is available on 0845 766 0184
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