Fund managers love to entice investors with one-of-a-kind funds that promise to break the mould and make you money. Yet, many fail to stand the test of time and invariably lose you money. ......
...... Innovative funds come under scrutiny, with analysts and investors asking whether they will live up to their billing. Many don't, as the examples above illustrate. But what of unique funds launched in recent years? How are they faring? ......
...... Axa Framlington Healthcare
The health care sector has seen highs and lows since the launch of this the first fund of its kind in February 1987. When the dotcom bubble burst at the beginning of the previous decade, so also did many health care and biotech stocks. For the next three years the health care fund languished at the bottom of the performance tables Axa Framlington was 872nd out of 889. But the fund survived and now has £250m under management. Although it took a hit during the credit crisis, it has had a positive performance for the past five years.
The fund singles itself out as run by scientists rather than traditional fund managers, current manager Deane Donnigan worked in the Georgia Hospital before joining Axa in 1997. The fund invests globally and holds biotech stocks, pharmaceuticals and hospitals as well as the health care support sector.
Alan Steel of Alan Steel Asset Management said: "The fund has performed reasonably well in the past 12 months and very well in 2008 when the market fell as health care tends to be a more defensive play in poorer market conditions. It is a specialised area where the manager is restricted to purely health care stocks. We prefer a global fund manager or US manager who is free to choose health care stocks when he sees opportunities, such as Felix Wintle at Neptune US Opportunities."
Quote courtesy of http://www.telegraph.co.uk/finance/personalfinance
TelegraphNews
The Telegraph on-line Monday 26 July 2010
