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First Closed-End Internet Fund Is Planned

While the open-end fund world has had Internet products on the market for several years, the closed-end world is just now introducing its first Internet fund.

The new closed-end product is the LCM Internet Growth Fund, which will be managed by LCM Capital Management of Chicago, according to an SEC filing. LaSalle Street Securities of Chicago and Wedbush Morgan Securities of Los Angeles are underwriting the fund. It will be sold on the American Stock Exchange.

Among the approximately 500 closed-end mutual funds in existence, there are none that invest exclusively in technology stocks let alone exclusively in Internet companies, according to the Closed End Fund Association of Kansas City, Mo.

The ICM Internet Growth Fund is being offered as an initial public offering through E Investment Bank, the online investment bank of Wedbush Morgan. Four million shares are being offered at $10 a share in the IPO.