By James Thorneley The Close UK Technology tracker unit trust has seen its assets increase 500% sinc...
By James Thorneley
The Close UK Technology tracker unit trust has seen its assets increase 500% since launch in November last year.
Much of this growth is down to increased retail interest rather than underlying portfolio growth, according to the group.
The fund commenced dealing on 3 November, when the FTSE techMARK 100 index was launched, with assets of £20m. It now has £100m. Since then the index has grown by about 80% from 2302.22 to 4204.10 on 18 January. The index was developed with a base value of 2,000 as of 18 October. Marc Gordon, managing director of Close Brothers Fund Management, said: "We have had a lot of interest in the fund particularly in the first week of the new year when technology stocks suffered a setback. Investors saw opportunity to get some value."
The index focuses on small and medium-sized technology companies. As such, it covers the new and fast growing companies in the sector but excludes the biggest and more established stocks - such as BT and Vodafone. Stocks in the index will have a market capitalisations of between £100m to £4bn. Among the companies in the index are Sema, Sage, Logica, Misys and CMG.
The largest sector within the index is computer services/ internet with a weighting of 35%, followed by computer software and biotechnology companies with weightings of 20% and 16% respectively.
Investors in the fund will benefit from a 1.25% discount on the initial management fee of 4.75% until 1 December. The annual management fee on the Isable and Pepable unit trust is 1.15%. Intermediaries receive 3% initial and 0.5% trail. The minimum lump sum investment is £1,000 and regular monthly savings can start from £100
Contact: 0800 269 824.
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