Citigroup of New York is developing an unusual Internet fund that will be traded on the American Stock Exchange.

The fund, called the Internet Index Shares, will be the first product of Citigroup's SSBC Index Series. It will invest in companies in the Salomon Smith Barney "T" Series Internet Index, which tracks the 30 largest publicly traded Internet companies in the U.S. SSBC Fund Management of New York will mange the fund. A registration statement was filed with the SEC on Sept. 14.

The open-end fund is unusual in that it will only issue and redeem shares of the fund in increments of 50,000 shares called "creation units," according to the fund's SEC filing. The fund will issue shares in exchange for securities included in the Salomon Smith Barney "T" Series Internet Index and for cash, according to the SEC filing.

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