We thought it might be useful to provide a preliminary report at this stage covering the activities of the Fund up to the weekly valuation point at 10am Wednesday June 11. This showed a value for the shares of 105.49p, a gain of 5.49% since the end of the fixed price Initial Offer period on May 19. Over the same period, our benchmark index, the techMARK All Share, recorded an improvement of 9.4% while the FTSE 100 is up by 5.2%.
Our slow relative start is due to the fact that the money in the Fund is only partly at work to date. So far, just over 40% of the funds received have been invested in a total of 23 stocks. We have found it much more difficult than anticipated to get meaningful positions in many of the smaller stocks that have worked so well for the Techinvest newsletter in the past. Putting £5000 into a small AIM stock is one thing; managing to buy £150,000 worth without an unfavourable move in the price of the stock is a very different matter. For that reason, we are very gradually and carefully building up worthwhile positions in some of our smaller favourites. However, in some it just hasn’t proved possible so far.
Of the 23 stocks now held, five are North American – Ascential Software, Fairchild Semiconductor, Geac Computer, SR Telecom and Xilinx a specialist in the design and manufacture of field-programmable gate arrays. So far, we are showing a profit on all five, with SR Telecom leading the pack with a gain of over a third.
Of the 18 London stocks held, the top 10 holdings are in Alphameric, COLT Telecom, LogicaCMG, Marconi, Merant, Planit, Innovation, Fibernet, NSB Retail and Plasmon. Several of the other holdings are partial positions in smaller companies which we are attempting to build up and therefore are unwilling to reveal at this time. Of the top 10 mentioned above, we are presently showing a profit on nine.
We are carefully monitoring prices and newsflow in a long list of Wait-and-Watch stocks and expect to invest in a number of these as suitable opportunities arise over coming weeks. There is also no shortage of interesting candidates to add to this list.
Investors in the Fund will be sent a report by Capita Financial Managers twice a year. The first of these should be sent out by the end of November and will cover the period up to October 31. The second report will normally cover the year to April 30.
We have no plans to issue regular updates on the progress of the Fund, over and above the mandatory twice yearly reports. However, we felt it a good idea to issue this early-stage report in order to give investors a flavour of how we are progressing with investing their money. Once we get closer to a fully invested position we will issue a further update on this site, hopefully before the end of the summer.
For any assistance required on administrative matters or if you wish to buy or sell shares in the Fund, please contact Capita Financial Managers at 88 Borough High Street, London SE1 1ST. Telephone: +44(0)207-556 8800; Fax: +44(0)207 556 0101.