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Credit Suisse Launches New High Growth Tech Fund

Ulrika Lomas, Tax-news.com, Brussels

18 January 2001

From all the doom and gloom surrounding the headlong plummet of TMT stocks at the end of last year, a note of cautious optimism seems to be emerging, at least if Credit Suisse are to be believed.

The investment house will launch a new fund aiming to target high growth stocks in the world-wide technology, media, and telecommunications sectors at the end of this month, having held off from launching in 2000 due to serious concerns about TMT valuations.

Although in the case of tech stocks, as in any other, it is dangerous to try and call the bottom of the market, the timing of this new fund is probably good, allowing investors to take advantage of the low prices available as a result of last year's dot com massacre (slaughter? Debacle? Call it what you will…) As Ian Chimes, the organisation's managing director observes: 'Having seen the dotcom 'froth' being removed from many valuations, the timing is now much more opportune.'

Credit Suisse, and those investors open to a certain degree of risk, should not, however, expect an easy ride, at least not in the initial stages. In December, Steve Lipper judged the mood as having gone from 'excessive optimism to pervasive pessimism', and the memory of the collapse in values and resultant panic will take a while to fade from investors minds.

The fund will invest primarily in telecom services and equipment, software, and media, with North American stocks constituting around 59% initially. It will launch on the 29th of January, with the initial charge of 5.25% reduced to 3.25% until the 16th of February. The annual management fee is 1.5%, and the minimum investment £1,000, or £

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