Close Plays FTSE
Close Fund Management FTSE Euro eTX Fund
Aim: Growth by tracking the FTSE eTX Euro 50 index.
Minimum investment: Monthly £100, lump sum £1,000.
Investment split: 35 per cent computer services, 34 per cent computer software, 11 per cent semi-conductors, 8 per cent internet, 6 per cent telecommunications equipment, 4 per cent computer hardware, 2 per cent other.
Isa link: Yes.
Pep transfers: Yes.
Charges: Initial 4.75 per cent, annual 1.15 per cent.
Commission: Initial 3 per cent, renewal 0.5 per cent.
Tel: 0800 269824.
Bruce MacFarlane, Partner, Capital Trust Financial Management,
Reza Parvaneh, Principal, Imperial Financial,
Martin Dilke-Wing, Director, Morgans Independent Advisers,
Godfrey Bloom, Investment director, TBO Corporate Benefit Consultants
Suitability to the market 7.5
Investment strategy 6.8
Past performance 7.5
Company's reputation 7.5
Product literature 7.5
Close Fund Management's Close FTSE Euro eTX fund is an open-ended investment company (Oeic) that tracks the FTSE eTX Euro 50 index. The index comprises of 50 small to medium sized European technology companies.
Examining how the fund fits into the market, Dilke-Wing says: “It fits very well in a sector where technology funds tend to have a high exposure to the USA, are centred on the UK market and where European smaller companies are not technology specific. This fund at present occupies a unique niche, particularly because of its passive management technique.”
Bloom agrees that the fund is unique at the moment. Parvaneh says: “There has been a gap for a pure Euro tech fund so far. This will fit very well.”
MacFarlane says: “The fund fits well into Close Fund Management's range of funds and will sit comfortably in a market which, it seems, cannot get enough of technology related launches.”
Identifying the type of client the fund is suitable for, MacFarlane says: “Clients who are prepared to accept volatility and take a longer term view should find this fund rewarding. Also, those clients wanting exposure to Euro denominated stocks – in a nutshell, higher risk clients.”
Parvaneh also suggests adventurous clients who like a lot of risk and Dilke-Wing qualifies this. He says: “By its very nature, this fund would only be suitable for aggressive risk-embracing investors or as a small component of a widely diversified portfolio. The fund is also useful when compared with other technology funds that do not permit Pep transfers.” Bloom thinks it is suitable for asset allocation adjustment in segregated portfolios.
Assessing the marketing opportunities the fund is likely to bring, Bloom says: “It is good for specialist managers of investment portfolios.” Parvaneh would target investors who are pro-Eurozone. MacFarlane says: “The timing of the fund launch with recent technology correction should provide buying opportunities for shrewd investors. The Isa wrapper will help the fund sell as we move towards the Isa sales season.”
Dilke-Wing says: “The fund will not provide any specific marketing opportunities because it is a specialised fund and probably not suitable for mass marketing.” But he adds that Pep managers may find it useful.
Moving onto the main useful features and strong points of the product, MacFarlane says: “It provides exposure to the European smaller capitalised technology market by tracking the FTSE eTX Euro 50 index. The portfolio will be diversified, reducing the overall risk. It is also cost competitive and Isa able.”