I am looking for an investment fund in which I can buy shares for my
newly-born grandson. This fund must be:
1) publicly quoted;
2) specialised in genetic engineering and in pharmaceuticals derived therefrom.
Ideally all dividends should also be reinvested in fund stock, since I
am obviously interested primarily in capital appreciation and not in
income. It should also, if possible, be international in coverage.

---

Request for Question Clarification by efn-ga on 24 Jul 2004 23:58 PDT

Hi boyo62,

I have not been able to find any fund as narrowly focused as you have
specified.  It looks like the closest thing would be biotechnology
sector funds.  They would likely be heavily, but not necessarily
exclusively, into companies that develop drugs with genetic
engineering.  Would you be interested in information about
biotechnology sector funds as an answer to your question?

--efn

---

Clarification of Question by boyo62-ga on 25 Jul 2004 02:29 PDT

If there's nothing more specific then that would be fine.

---

Request for Question Clarification by efn-ga on 25 Jul 2004 10:47 PDT

Different funds are available in different countries.  In what
country's market are you interested?  This does not necessarily
constrain where the fund can invest, just where shares of the fund can
be sold.  (Sorry, I should have asked this the first time around.)

---

Clarification of Question by boyo62-ga on 25 Jul 2004 11:51 PDT

The funds should preferably be available in european markets, but be
internationally based. I am based in the Netherlands but young Oliver
currently lives in England,funds in which shares can be purchased in
either of these countries will be fine.

Hi boyo62,

Thanks for the clarifications.  I have compiled a list of
biotechnology mutual funds with some information about how they relate
to your criteria.  I believe all are publicly quoted.  I looked at
funds available in the United Kingdom, because I can't read much
Dutch.  I will report the percentage of investment in United States or
North American companies as an indicator of the extent to which funds
are internationally diversified, and I will cite sources so you can do
your own further research.


Close Finsbury Global Investment Funds PLC Pharmaceutical Fund

Objective:

"To maximise total return over the longer term from a well-diversified
portfolio of equities, (and, if considered appropriate, convertible
securities) by investing on a global basis in quoted companies
involved in the pharmaceutical industry, including the biotechnology
sector."

http://www.closefinsbury.com/html/products/funds/pharmaceutical/objective.asp

US investment:  68.5%

Source:  The June 2004 Fact Sheet on the fund:

http://www.closefinsbury.com/jkcm/included/Pharmaceutical06.pdf

Reinvestment:  "Normally, all dividends received will be invested in
further shares in the Investment Fund(s) or Trust(s) in which you are
invested, subject to a minimum deal size of £25."

Source:  Close Finsbury Key Terms and Conditions of our Investment Schemes

http://www.closefinsbury.com/jkcm/included/KFD_T&C%20Mar%2004.pdf


Finsbury Worldwide Pharmaceutical Trust PLC

Objective:

"Finsbury Worldwide Pharmaceutical Trust invests worldwide in
pharmaceutical and biotechnology companies with the aim of achieving a
high level of capital growth."

http://www.closefinsbury.com/html/products/trusts/pharmaceutical/objective.asp

Investment in America:  68.4%

http://www.closefinsbury.com/jkcm/included/FWPT06.pdf

Reinvestment conditions are presumably the same as for the Close
Finsbury Global Investment Funds PLC Pharmaceutical Fund.



Framlington Biotech Fund

Objective:

"To provide long term capital appreciation by investing principally in
equity securities of companies in the biotechnology, genomics and
medical research industries worldwide."

http://www.framlington.co.uk/utfundinfo2.asp?MID=HB5&MO=5&FC=BIO

Investment in North America:  85.3%

http://www.framlington.co.uk/uttopten2.asp?MID=HB5&MO=8&FC=BIO

Fund home page

http://www.framlington.co.uk/corp.asp?MID=HB5&MO=1

The fund is available in "accumulation units" and "income units."  "If
you buy accumulation units the income will be automatically reinvested
within the fund and reflected in the price of units."

http://framgrou03.uuhost.uk.uu.net/keyfeatures/unitkey.pdf

http://www.trustnet.com/ut/funds/?fund=4710


Franklin Biotechnology Fund

Objective:

"The Fund will seek capital appreciation by investing primarily in
biotechnology companies and discovery research firms worldwide and to
a lesser extent in debt securities of any type of issuers in any of
those countries."

US investment:  91.5%

http://www.franklintempleton.co.uk/uk/jsp_cm/funds/fdata/311_i_uk_en.jsp

I could not find information about dividend reinvestment with the
Franklin Biotechnology Fund.


International Biotechnology Trust

Objective:

"The investment objective of International Biotechnology Trust plc
('IBT') is to achieve long term capital growth by investing in high
growth, development stage biotechnology companies that are publicly
quoted or unquoted but approaching flotation or trade sale.  IBT
invests in companies that are undervalued and/or under-resourced, with
experienced management and strong potential upside through the
commercialisation of a product, device or enabling technology."

http://www.internationalbiotrust.com/index2.html

USA investment:  66.78%

Source:  Fact Sheet of 31 March 2004, accessible from:

http://www.schroders.com/content/cda/view/factsheet/list/0,1269,currentMenuID%253D2918%2526audienceID%253D3,00.html

It appears that reinvestment of dividends is available, since the
application form for opening an account says

"If you wish to reinvest any income earned on your investment to
maximise your long-term returns, DO NOT COMPLETE THIS SECTION and your
income will be reinvested automatically.  Only complete this section
if you wish to have income."

http://www.schroders.com/content/cda/view/applicationform/list/0,1319,currentMenuID%253D1782%2526audienceID%253D3,00.html#


Additional Links

I found most of these by doing a search for "biotechnology" on the
Trustnet web site.  This is a good source for summary information
about the funds, including past performance.

http://www.trustnet.com/


As the standard disclaimer says, Google Answers just provides
information, not investment advice or recommendations.

I hope this information is helpful, and I hope your investment does
well for Oliver.  If you need any more information, please ask for a
clarification.

--efn

Nice job Efn,BTW Oliver sends his compliments :-)

That is not a very good investment for a baby, maybe you could buy him
something a little safer?  Or at least more diverse?  But it's your
business.

http://dmoz.org/Business/Investing/Mutual_Funds/

http://www.mutualfundsnet.com/v2/

http://biz.yahoo.com/funds/

http://www.sectorupdates.com/funds.asp

One very good Indian Stock I know is BIOCON. Do investigate.

Many thanks for your helpful comments. daytrader76 & harshadm,while I
absolutely agree with the need for complete physical safety of babies
I?m afraid I take a different view of investments made on their
behalf. The age I have lived in (1937 to date) has been
technologically dominated by electronics; the next big development,
which we are presently going through, will (I feel sure) be dominated
by genetics. Let?s just say that I want to take a gamble on something
which, (20-25yrs from now), may give him more than the purchasing
power of the present investment. Thanks for the tip, harshadm, I?ll
certainly bear that in mind for my own investments, however, since
it?s not an investment fund it?s not exactly what I need for Oliver.

Thank you for the rating and the tip.