The Franklin Biotechnology Discovery Fund has closed to new investors.

The fund reached $500 million in assets under management, prompting management to close it, Franklin Templeton Distributors of San Mateo, Calif. announced last week. Franklin will permit additional sales only to existing shareholders and retirement plan investors, the company said.

By limiting new assets, the fund will have a more stable cash flow and assets should be more manageable, said Kurt von Emster, the fund's portfolio manager.

"Since many of our investments and new opportunities are small and mid-cap companies, by closing the fund to more investors, we will still be able to establish meaningful positions while remaining nimble and responsive to ever-changing market conditions," von Emster said in a statement.

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