Fears have been building of a bubble in the biotech sector But the less explored private equity market could an interesting source of future returns, according to Carl Harald Janson, manager of International Biotechnology trust
Despite the long history of investment trusts - the first one was launched in 1868 by Foreign & Colonial - in recent years these vehicles have been eclipsed by the more popular open-end investment companies (OEICs). Many investors prefer the more straightforward nature of open-end vehicles, which allow the manager to create more shares to meet investor demand. But the closed-end structure of an investment trust is ideally suited for biotechnology investing. Specific risk Investing in biotechnology is very different to buying large global companies which provide a solid dividend inco...
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