28 October 1999

Close Fund Management is offering the first UK technology tracker fund to coincide with the launch of the FTSE international’s technology indices next month.

The indices will concentrate on companies seen to be at the cutting edge of new technology and Close hopes to capitalise on interest in this sector with it’s fund.

The fund will track the techMARK 100 index made up of small and medium- sized technology companies. Stocks in the index have a capitalisation of between 75m and 4bn. FTSE international is also launching a techMARK All-Share index of about 170 stocks including blue- chip shares such as Vodaphone, SmithKline Beecham and Glaxo.

Close says it opted to track the 100 index because it believes investors may not perceive companies such as Glaxo as technology stocks while Vodaphone’s size gives the All-Share an unbalanced look. The fund will be offered to retail and institutional investors and is available as an Isa. It is the only technology fund to be available for Pep transfers, as it will invest in UK companies only.

Charges are 4.75 per cent initial and 1.15 per cent annual. There is a discount of 1.25 per cent on initial charge for investments made by November 4. Initial commission is 3 per cent with 0.5 per cent renewal.

Close managing director Marc Gordon says: "The stocks will not be those widely owned by investors at the moment.

"We believe the creation of a tracker fund which removes the risks associated with stock selection will be one of the most beneficial ways for investors to profit from the technology revolution."