DALLAS - AMR Investment Services is seeking to expand its mutual fund line-up, possibly by buying mutual funds from other managers. The American AAdvantage funds are three money market ones, a short-term bond, a domestic equity, a domestic balanced and an international equity fund. AMR manages the fixed-income funds internally; the other funds are set up as manager-of-manager funds, using external investment advisers.
In addition, AMR has made it easier for consultants to include its seven American AAdvantage mutual funds in a bundled alliance program. AMR introduced a new class of institutional shares, the PlanAhead shares, and priced them about 25 basis points higher than its regular institutional shares to compensate for record-keeping services provided by a third-party adviser or consultant. The new shares for the diversified family of funds will be marketed primarily by employee benefit consultants through their defined contribution plan alliances, said Bill Quinn, AMR's president. So far, the funds have been added to alliances by NationsBank Corp., Charlotte, N.C. and Towers Perrin, New York.
CLEVELAND - KeyCorp has begun to offer mutual funds from outside managers in its PRISM bundled 401(k) product, one of the few bank service providers to do so.
PRISM 401(k) will offer funds from the following families: the Franklin/Templeton Group of Funds, The Fidelity Advisor Funds, Fidelity's Magellan and ContraFund, and the American Funds Group.
The funds are being added to KeyCorp's more than 20 proprietary funds now available through PRISM.
KeyCorp expects to enhance its Trust Talk voice-response system to include the new funds by October 1994.
