28 October 1999

Close Fund Management says pension schemes have expressed ‘ phenomenal’ interest in it’s new FTSE techMARK fund to be launched on November 1.

Close Fund Management managing director Marc Gordon said: "There is a real technological revolution going on in the UK. The fund will track the FTSE techMARK 100 index of UK technology stocks, giving investors exposure to technological innovation without exposing them to the risk of stock- picking or overseas volatility."

Richard Holway, who provides independent, market and company research on the UK software and IT services sector, said: "I think any investor who didn’t have part of his portfolio in the technology sector would have been badly advised.

"The markets themselves have grown by a compound 20pc per annum since 1989 and I see no reason why that should not continue. Shares in the software and IT service sector have gone up 430pc in the last 10 years - compared with the FTSE 100 which went up 175pc.

"The sector is no more volatile than the FTSE 100. It has its ups and downs, including going down when Russia defaulted on its debts last year even though there was no link. It has included half a dozen companies which have gone bust and others, like Sage, the world leader in financial accounting software products for small companies, whose share price is 105 times what it was 10 years ago."

Gordon added: "The FTSE techMARK 100 Index covers the 100 largest up- and- coming technology companies ranging in value from £50m to £4bn and excluding firms such as Glaxo Wellcome, which is more pharmaceutical than technology.

"We’ll be holding stocks rather than investing synthetically (using options) and the fund will be managed by the same team of four which manages the £135m Close FTSE 100 trust."