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To: SpudFarmer who wrote (37241)	7/26/1999 5:47:00 PM
From: Ruffian	Respond to of 152472

Top Holding> WSJ July 26, 1999 Dow Jones Newswires Light Revolution Fund Invests In 'Information Age' By JOE NIEDZIELSKI NEW YORK -- The Light Index Investment Co. has become one of the latest investment advisers to launch a mutual fund tied to the fortunes of the new economy. The Light Revolution Fund invests in large-cap, brand-name technology companies that are on the leading edge of the global economic transition from the industrial age to the information age. Henry Hewitt, president of the investment adviser located in Tacoma, Wash., and the fund's portfolio manager, calls this transition the "Light Revolution." To Hewitt, information is a more precious commodity than oil. "The fact that we can now transform information at the speed of light is changing everything about the way people go about their business," he said. The information age is one of the more recent marketing twists investment advisers have employed to glean money from mutual fund investors. Last December, Investec Guinness Flight Global Asset Management launched the Wired Index Fund, which is linked to an index of 40 "new blue-chips." The index was developed by the San Francisco high-tech magazine Wired and includes companies like Microsoft Corp. (MSFT), Cisco Systems Inc. (CSCO) and America Online Inc. (AOL). Earlier this month, Investec Guinness Flight signed a licensing agreement with Internet.com Corp. (INTM) to create an Internet index fund, expected to be available to investors later this month. For its part, the Light Revolution Fund offers a diversified portfolio of established large-cap names. Most of the companies have a consistent history of earning money and, "in our opinion, have great prospects for continued long-term growth," said Hewitt. Manager Looks For Leaders With Earnings History Unlike technology mutual funds, which also invest in small-cap stocks and are more suited for aggressive investors, the Light Revolution Fund is geared to investors who want exposure to technology stocks with less risk, said Hewitt. "This fund is a convenient way for a prudent investor to participate in the long-term growth potential of the information revolution," he said. In addition to selecting large-cap stocks for the portfolio, Hewitt looks for companies with consistent earnings history and leadership positions in their respective industries. The fund invests in a broad range of companies that ply their trade in the hardware, software and telecommunications areas, including wireless and Internet-related companies. Its top holding is Qualcomm Inc. (QCOM), the wireless communications systems developer, followed by Broadcom Corp. (BRCM), a semiconductor supplier to networking companies. Both are top holdings primarily through market appreciation, said Hewitt. Other top holdings include Tellabs Inc. (TLAB), which makes telecommunications products and network access systems, Charles Schwab Corp. (SCH), the discount and online broker, and Xilinx Inc. (XLNX), which makes programmable chips used in a wide variety of systems. The minimum initial investment for the fund is $5,000. There is also a one-time 4.75% sales charge on new purchases. The fund's total annual operating expenses are expected to be 2%. In its filing with the Securities and Exchange Commission, total operating expenses of 3.26% are disclosed. But the adviser has agreed to waive its 1% management fee and reimburse the fund's other expenses to cap fees at 2%. Hewitt said he expects the fund's annual operating expenses to eventually be similar to those of most technology funds at around 1.75%. He aims to keep turnover low at about 10%, removing companies from the portfolio on earnings disappointments, or if its products become obsolete through new technology from competitors. While the fund's annual fees are high compared to technology funds and other less actively managed mutual funds, Hewitt said investors would need at least $500,000 or more to buy meaningful positions in the 50 or so companies where the Light Revolution Fund is invested. Hewitt has been an investment adviser since 1993. The Light Index Investment Co. currently manages about $2.5 million, with about $1.3 million of that invested in the new mutual fund.