Why invest in biotech?
Biotechnology is a burgeoning specialist field that is transforming the way diseases are treated. Very loosely, biotechnology is the use of living organisms and molecular biology to produce products, typically in the healthcare sector. It is the innovation engine of the biopharma/drugs sector, often sitting at the cutting edge of the next medical breakthrough.
In the early 2000s the sector was very much in its infancy, but since then it has become crucial to the global healthcare industry. It has a lower correlation to world equities than healthcare and therefore offers diversification benefits alongside a healthcare fund.
In investment terms, biotechnology is:
- High growth potential
- Defensive, commercial businesses
- Innovation-led
- Built on strong long-term fundamentals supported by structural shifts in demographics and lifestyles
Sitting at the cutting edge of the next medical breakthrough
Acquired by traditional pharma to harness technological innovation
All the top 10 selling drugs globally in 2021 are biotechnology derived
Universe depth increased markedly over the past decade
The AXA Framlington Biotech Fund
The AXA Framlington Biotech Fund invests in shares of listed companies, principally in the biotechnology, genomic and medical research industry. It can invest in companies of any size, based anywhere in the world, although the portfolio tends to be biased towards the US where most biotechnology companies are based.
View fundsWho is AXA Framlington Biotech Fund for?
Investors that see the opportunity in a cutting edge, disruptive technology, with a foundation of commercial companies.
Investors looking to diversify healthcare exposure in a burgeoning technological field with growth characteristics.
Global investors seeking to benefit from demographic factors that are driving growth in the sector.
Why invest in biotech with AXA IM?
AXA IM has a long history of successfully running dedicated healthcare franchises. The AXA Framlington Biotech Fund was established in 2001 and has delivered continued long-term outperformance versus the benchmark. You can view the performance history here.
The managers bring a wealth of dedicated healthcare and biotech experience having a collective 33 years covering the sector. They sit within the broader global equities team that spans London, China, Singapore, Hong Kong and Paris. This presents a breadth of accessible resource for sector funds like this.
Lead manager, Linden Thomson has nearly two decades of buy-side and sell-side experience as one of the early specialists within the biotechnology sector. Importantly, our managers also have strong, science-focused academic backgrounds that bring credibility to their analysis of the sector. These include MSc Medical Microbiology (Hons), PhD Biochemistry, MPhil Statistical Science; most recently, Cinney Zhang completed an MBA with a thesis titled The Rise of China’s Biotech Sector: What the Future Holds.
Risk factors
The capital of the Fund is not guaranteed. The Fund is invested in financial markets and uses techniques and instruments which may be subject to sudden and significant variation, which may result in substantial gains or losses.
Single Sector Risk: as this Fund is invested in a single sector, the Fund's value will be more closely aligned with the performance of that sector and it may be subject to greater fluctuations in value than more diversified funds.
Currency Risk: the Fund holds investments denominated in currencies other than the base currency of the Fund. As a result, exchange rate movements may cause the value of investments (and any income received from them) to fall or rise affecting the Fund's value.
Further explanation of the risks associated with an investment in this Fund can be found in the prospectus.
Disclaimer
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AXA Framlington Biotech Fund is a part of AXA Framlington Range of Authorised Unit Trust Schemes and is managed by AXA Investment Managers UK Limited, part of the AXA IM Group.
AXA Investment Managers UK Limited, is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate, London EC2N 4BQ. In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.
Risk Warning
The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.