CHICAGO - When it comes to picking mutual funds, the most experienced managers often don't deliver the goods, according to Morningstar Inc.
"The average fund with a long-term manager features moderate risk, lackluster returns and an overall rating of three stars," out of a possible five, said a report from the firm.
A few exceptions the firm called "ageless legends" who have been running the same fund for 20 years or more with exceptional returns are: Shelby Davis, manager of New York Venture; Charles Albers, who runs Guardian Park Avenue; and the team of managers of the New Perspective Fund. These managers also appear at the top of rankings by Forbes magazine and Standard & Poor's Corp.
WILMINGTON, Del. - PNC Institutional Management Corp., a subsidiary of PNC Bank Corp., has created the International Dollar Reserve Fund I Ltd., an open-end limited liability investment company organized under the laws of the Cayman Islands.
The no-load, U.S. dollar-denominated money market fund is designed for non-U.S. citizens and institutional investors acting on their behalf. The fund will invest in a broad range of non-U.S. bank obligations, non-U.S. corporate obligations and sovereign debt.
The Aquinas Funds, a group of socially responsible funds linked to the Catholic Foundation, is seeking SEC approval to use outside investment advisers.
Until now, the funds had been managed by Aquinas Investment Advisors. The series, which is sponsored by SunStone Financial, includes a fixed income, equity income, equity growth and balanced portfolio.
BOSTON - State Street Global Advisors, which sponsors the $6 billion Seven Seas family of no-load mutual funds, plans to launch three new funds by year end - active non-U.S. equities, small-cap stocks, and a real estate investment trust, said Gus Fish, principal.
The funds will be geared to institutional investors, but retail investors will be able to participate. Russell Fund Distributors will market the funds externally while State Street will market the funds to its clients.
Seven Seas already offers one foreign fund - an emerging markets fund - that was launched in March and has $27.4 million, virtually all from retail investors.
KANSAS CITY, Mo. - Twentieth Century Mutual Funds, a no-load fund family known for its growth style approach, has introduced its first income-oriented stock fund.
The fund, Twentieth Century Equity Income, seeks current income and capital appreciation by investing primarily in income-producing equity securities. The management team is led by Peter Zuger and Philip N. Davidson.
Mr. Zuger, who joined the firm in 1993, previously managed the $200 million Woodward Intrinsic Value fund for NBD Bank, Detroit. Mr. Davidson joined NBD in 1993 from Boatmen's Trust Co., St. Louis, where he was vice president and equity portfolio manager of institutional value equity accounts.
Equity Income joins the Twentieth Century Capital Portfolios series along with the $125 million Twentieth Century Value, introduced in September 1993.
MINNEAPOLIS - IDS Financial Services plans to offer multiple classes of shares and consequently will merge funds that differ only in their fee structures.
Pending shareholder approval, the following funds will merge: IDS International and IDS Strategy-Worldwide Growth, which are both international stock funds seeking long-term capital growth and are managed by IDS' London subsidiary; and IDS Federal Income Fund and IDS Strategy-Short-Term Income, which seek high income and preservation of principal mainly through investments in government-related mortgage-backed securities.