Templeton is looking to launch a biotechnology and an aggressively managed US Growth fund in the sec...
Templeton is looking to launch a biotechnology and an aggressively managed US Growth fund in the second quarter of this year, writes James Thorneley.
The funds will form part of the group's existing Oeic and will be similar to portfolios already being run in the US by Franklin Templeton.
The $95m Franklin Aggressive Growth fund was launched in the US last June. A $10,000 investment then would be worth $23,000 as at 31 December, according to the group.
The fund invests primarily in equity demonstrating accelerating growth, increasing profitability, or above average growth. The portfolio is managed by Michael McCarthy and consists of 71 stocks and includes holdings in Cisco Systems, Microsoft and Apple Computer.
Franklin Biotechnology Discovery is managed by Kurt von Emster and was launched in September 1997. An initial investment of $10,000 at launch would now be worth $19,227, according to Templeton. The $200m fund invests in biotechnology companies and discovery research firms located in the US and other countries.
As at the end of November 1999 the portfolio had 49 holdings. The largest sector weighting was in therapeutics at 48.7%.
This was followed by discovery biotechnology companies and delivery systems firms with 17.7% and 8% respective weightings.
During the last quarter the share prices of many biotech stocks doubled. The correction in US biotechnology stocks in September and October proved to be a great buying opportunity, according to Antony Milford manager of Framlington Healthcare unit trust.
Around 50% of Milford's fund is invested in biotech which has had a significant impact on its performance. Over three months to 9 February the fund is ranked one out 34 in the global specialist sector beating the top performing technology funds of Aberdeen and Henderson Investors.
During the period it rose by 106% compared to an average sector rise of 30.9%.
Jim Sharp, marketing manager UK at Templeton, said: "These two funds are certainly among a number we would like to launch but any launch would not be until the second quarter."
Templeton currently has three sub-funds within its Oeic all of which invest globally.
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