| Two
new techMARK indices were introduced by the London Stock Exchange
(LSE) in conjunction with FTSE International at the end of November
1999.
They are the FTSE techMARK
All-Share and the FTSE techMARK 100 Indices. The problem with the
former is that the LSE decided to draw the net very widely when
deciding which stocks would qualify for techMARK. As a result, more
than two-thirds of the All-Share is made up by just eight stocks that
most people would not regard as high-tech specialists: Vodafone
Airtouch, BT Glaxo Wellcome, AstraZeneca, SmithKline Beecham, Cable
& Wireless, GEC and Orange.
But the techMARK 100 Index is
a much purer play on the sector. ARM, for example, is 5 per cent of it
but only 0.8 per cent of the All-Share index.
Close Fund Management have
been quick off the mark and fortunately their new FTSE techMARK Index
Fund which was launched at the beginning of November is linked to the
techMARK 100, not the All-Share. And what a cracking pace it has set
in just the first month of its existence. At an initial offer price of
103.5p, the bid price on 16th December was 143.24p and
increase of 38%. Probably one of the fastest new unit trust performers
ever.
|
Marc
Gordon, managing director of Close Fund Management, said:
"Companies in the techMARK 100 are not held in a large number of
portfolios, and that makes them attractive. There will be more focus
on up-and-coming technology stocks."
He cited the example of
Hambrecht and Quist’s high-tech fund in the US, which has
outperformed the S&P 500 over the past five years and said he
hopes the same thing will happen in the UK.
Full details are posted on http://www.trackerfunds.com.
These include links to sites carrying details of the constituents of
the Index.
There is also a SPECIAL OFFER
which closes on 31st January 2000 which is only available
via the www.trackerfunds.com
website.
Investors looking for
exposure to this fast growing hi-tech sector can transfer existing
PEPs, take out new ISAs and buy units direct. |
