Initial offer until 31 July 2001

Annual donations to UNICEF

• up to 40% of net annual management charge

Close Fund Management today launches its first fund to track FTSE4Good, the new socially responsible investment (SRI) index series launched by FTSE today. Tracking socially responsible companies in the UK, the FTSE4Good UK Fund aims to address the growing demand for SRI, by investing directly in what aims to be the UK benchmark for investment in this area, embracing companies who employ best practice in their sector in terms of environment, human rights and stakeholder relations. This Fund will be the first in the Official FTSE4Good series, managed solely by Close Fund Management.

The FTSE4Good UK 50 index, a tradable index containing the largest 50 stocks by market capitalisation, has outperformed the FTSE 100 by 15% over the last 5 years. Investors interested in SRI will be assured that each company has met the selection and best practice criteria for FTSE4Good on environmental, human rights and social issues as researched by the independent advisory committee set up by FTSE and in association with EIRIS, the Ethical Investment Research Service.

Marc Gordon, Managing Director of Close Fund Management, commented: "FTSE4Good brings clarity and structure to socially responsible investment for the first time. This Fund is all about making socially responsible investment mainstream, tracking the companies who are most likely to benefit financially from adopting good practice. As such, investors will be able to use the Fund as a core element in their investment portfolios knowing that it is possible to generate strong returns in a way that will be positive to the community as a whole. "

From today, there will be an initial price offer at a price of £1 on all investments. The FTSE4Good indices go live on Tuesday 31 July.

FTSE4Good UK Fund - key details
The FTSE4Good UK Fund is an Open Ended Investment Company (OEIC). As well as direct investment in the OEIC, the Fund will be available to retail investors as an Individual Savings Account (ISA) and for Personal Equity Plan (PEP) transfers.

The FTSE4Good UK Fund has an initial charge of 4% and a 1% annual management charge, out of which the donation to UNICEF will be made. The minimum investment is £1,000 lump sum or £100 for monthly investments.

UNICEF will receive a significant proportion of the annual management charge from the Fund, representing up to 40% of the Manager's net annual management revenue allowing the investor to donate to charity whilst investing in the future.

Mark Makepeace, FTSE's Chief Executive said: "The demand for Socially Responsible Investment funds has grown substantially over the past few years, and it is in response to this demand that FTSE has launched its FTSE4Good index series. The FTSE4Good indices and the Close FTSE4Good UK Fund makes investment in this field more accessible, predictable and transparent."

Peter Webster, Executive Director of EIRIS, added: "While a number of surveys show that as many as 70 per cent of the public would like to invest their money ethically when they are asked about it, as few as 20 per cent are aware of that possibility. The high profile of the FTSE4Good indices and Close Fund Management's FTSE4Good UK fund will be a major step in filling this awareness gap and helping many more people to consider taking their concerns into account when buying pensions, ISAs and other personal finance products."

A comprehensive list of criteria and constituents for the index are available at http://www.ftse4good.com.

For further information on the Fund investors should telephone Close Fund Management on 0800 269 824, visit www.closefm.com or
contact their independent financial adviser.

For further information, contact:
Marc Gordon, Managing Director, Close Fund Management 020 7426 4023
Emma Chilvers / Laura Hastings, Lansons Communications 020 7490 8828
Sandra Steel, FTSE 020 7448 1821

FTSE4Good Indices

Selection Criteria

These indices have been created in order to meet the complex needs of SRI and are designed to be the first step towards setting a global standard in the fast growing area of SRI.

Constituents of the FTSE4Good series will be determined by assessing a company's achievements in the following areas:

• working towards environmental sustainability;
• developing positive relationships with stakeholders;
• upholding and supporting universal human rights.

In line with current socially responsible investment (SRI) practices, FTSE4Good will contain three exclusions at launch. These are:

• tobacco producers;
• manufacturers of weapon systems;
• owners/operators of nuclear power stations.

FTSE4Good is an innovative series of real-time indices designed to reflect the performance of socially responsible equities. The series, created and managed by global index provider FTSE, covers four markets: UK, Europe, US and Global. Four tradable and four benchmark indices make up the FTSE4Good index series. A committee of independent practitioners in socially responsible investment (SRI), and corporate social responsibility (CSR), review the indices to ensure that they are an accurate reflection of current CSR best practice.

FTSE donates license fee income and other revenue from FTSE to UNICEF, the global charity dedicated to improving the lives of children, their families and communities.

Close Fund Management
Close Fund Management is the specialist fund management subsidiary of Close Brothers Group PLC, now the UK's largest independent quoted Merchant Bank and among the 250 largest companies listed on the London Stock Exchange. The Group, which is over 130 years old, has grown significantly in the last 25 years and includes a number of early leading financial services companies. Close Fund Management was founded in late 1995 to provide specialist investment management services to the retail and institutional market.

Close Fund Management manages over £600m, including the successful range of Escalator funds - the widest range of protected unit trusts in the market. It has worked with FTSE on four previous fund launches - The FTSE Techmark Fund, The FTSE Euro eTX Fund and two index-tracking split capital funds - the innovative Close FTSE 100 Investment Trust and the Close FTSE 100 Income and Growth Fund.

FTSE
FTSE is one of the world's leading experts in the creation and management of equity indexes and is jointly owned by the London Stock Exchange and the Financial Times. With offices in London, New York, Paris, Frankfurt and Hong Kong. FTSE services clients in 77 countries worldwide. It manages and develops globally recognised indices ranging from the FTSE All-World Index to the real time FTSE Eurotop series and the FTSE 100. The company has collaborative arrangements with the London, Amsterdam, Athens, Brussels, Cyprus, Euronext, Luxembourg, Madrid, and Norex stock exchanges, as well as with Nikkei of Japan (Nihon Keizai Shimbun, Inc).

FTSE indices are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation and for creating a wide range of index tracking funds. Committees of senior fund managers, derivatives experts, actuaries and experienced practitioners independently review all changes to the indexes ensuring that they are accurate, timely and without bias. Real time FTSE indices are calculated on systems managed by Reuters. Prices and FX rates used are supplied by Reuters.

UNICEF
Created more than 50 years ago, UNICEF - The United Nations Childrens Fund - has reached hundreds of millions of children and their families - children threatened by conflict and poverty's worst symptoms and causes.

In 1965 UNICEF was awarded the Nobel Peace Prize and in 1989 was instrumental in preparing and promoting the Convention on the Rights of the Child which has become the most widely ratified piece of legislation in history.

Today UNICEF is working in more than 160 countries to protect the rights of children and ensure their survival, development and right to a safe and happy childhood. UNICEF funds are put to work in the health care, nutrition, education, emergency relief, clean water and sanitation.

EIRIS
EIRIS is the UK's leading independent provider of research into corporate social, environmental and other ethical performance. The Ethical Investment Research Service (EIRIS), a charity, was set up in 1983 to help churches and charities implement ethical investment policies. EIRIS Services Ltd, the charity's subsidiary, undertakes the research and provision of services to clients, and the development and marketing of Ethical Portfolio Manager, EIRIS's ethical and socially responsible investment research software.