WEST BEND, Wis. - Principal Preservation Portfolios Inc. selected Mesirow Financial, Chicago, as subadviser of its newly launched Select Value Portfolio.
The Select Value Portfolio is one of nine mutual funds offered through Principal Preservation Portfolios, a fund group sponsored by B.C. Ziegler and Co., a West Bend-based investment banking and brokerage firm.
Fund assets are being invested primarily in domestic midcap stocks (companies with market value between $400 million and $2 billion), said Kenneth S. Kailin, portfolio manager and a vice president of Mesirow.
DETROIT - NBD Bank N.A. recently added the Woodward Capital Growth Fund to its Woodward Funds group.
The new fund invests in common stocks of domestic companies, foreign issuers and American depository receipts with prospects for long-term earnings growth.
The fund targets investors whose principal objective is long-term capital appreciation; dividend income is a secondary consideration.
With $6 billion in 15 different portfolios, the Woodward Funds are the seventh largest bank mutual fund family in the country.
NEW YORK - Scudder, Stevens & Clark is thinking of launching a diversified emerging markets fund, according to Gavin Quill, marketing vice president.
Scudder, Stevens & Clark already offers a Latin American fund with $760 million and a Pacific Rim fund with $410 million, so offering a combined fund with additional Eastern European investments is a "logical extension," Mr. Quill said.
Investors might like the convenience of having all of the markets under one umbrella, he added. Also on the international front, the firm already has in registration a European stock fund, he said.
NEW YORK - Dreyfus Corp. will launch a mutual fund, Dreyfus Omnifund, to invest in open-end mutual funds offered by other firms as well as money market funds. (The only Dreyfus Group funds it may invest in are money market funds.) The fund also may buy securities and derivatives.
This represents a departure from other asset allocation funds that invest only in sister funds of the same fund family. Other fund families are expected to follow Dreyfus' lead in the near future.
Investments will be in equity funds seeking capital appreciation; equity and debt funds seeking capital appreciation and income; fixed-income funds seeking high income; and money market funds.
Ernest Wiggins, former president of Gabelli International, will run the no-load fund.
RICHMOND, Va. - Cambridge Series Trust, a series of funds sponsored by Cambridge Investment Advisers, Richmond, has named Scudder, Stevens & Clark, New York, as subadviser for a new global stock portfolio. The fund seeks capital appreciation.
While this fund is a load fund, Scudder's own mutual funds are no-loads. The custodian for the fund will be State Street Bank & Trust Co.
SAN FRANCISCO - Montgomery Asset Management is looking at developing an offshore fixed-income mutual fund business, according to John Story, executive vice president and managing director of The Montgomery Funds.
"We are definitely looking at offering some offshore fixed-income products. We're deciding whether to hire a team in-house or subcontract," Mr. Story said.
On the flip side, the firm, which runs $3 billion including an emerging markets mutual fund, is also evaluating a few opportunities to act as a subadviser itself, he said.
NORTHBROOK, Ill. - A new contrarian investment fund has been launched by Grandich Advisory Co. Inc.
The fund, the Peter Grandich Contrarian Fund, named for the firm's president, seeks long-term growth through aggressive value investing worldwide as well as short-selling of overvalued securities.
It is one of very few publicly offered mutual funds that permits short selling of up to 25% of fund assets. The fund has no initial sales charge and no redemption fee.
FORT WORTH, Texas - American Aadvantage Funds, the family of mutual funds managed by the in-house investment management subsidiary of AMR Corp., has named several new subadvisers in its effort to expand its retail focus.
The fund family is offering four new Mileage Class products for individual investors. Since their inception in 1987, the American AAdvantage Funds have been available primarily to institutional investors.
Several managers were named as subadvisers of the new funds. Only one firm - Morgan Stanley Asset Management, which was selected as a subadviser for the international equity fund - has not previously managed institutional accounts for AMR. The other international managers are: Hotchkis & Wiley and Templeton.
For the Growth and Income fund and the Balanced fund, the managers are: Barrow, Hanley; Capital Guardian; Independence Investment Associates and Hotchkis & Wiley. Also managing the Growth and Income fund is Ganucheau, Stupfel & Brumley.
The fourth new fund, a limited term (fixed) income fund, will be managed by AMR directly.
The Mileage Class gives individual investors the opportunity to receive AAdvantage frequent flyer miles while they invest - a benefit not offered to shareholders of other mutual funds. Another new class of shares, the PlanAhead Class - while not featuring AAdvantage miles - for the first time permits broker/dealers, consultants, bank trust departments and record keepers to offer the American AAdvantage funds and enables retirement accounts such as IRAs to invest directly in the funds.
CHICAGO - Morningstar Inc. has acquired Marketbase, a provider of data on U.S. stocks. As a result, the mutual fund consulting and performance ranking firm will offer a stock screening software product covering U.S. stocks. The new product will be named U.S. Equities OnFloppy.
The firm plans to offer more than 200 points of information on 6,000 stocks traded on the New York Stock Exchange, NASDAQ and the American Stock Exchange. Investors will be able to rank or search for stocks based on their specific investment criteria.
SANTA FE, N.M. - The seven Thornburg Limited and Intermediate Term Bond Funds have expanded their classes of shares. The funds now offer B and C shares in addition to A shares, according to H. Garrett Thornburg Jr., president of Thornburg Management Co. Inc., investment manager to the funds.
Prior to Sept. 1, all of the funds were sold with a front-end sales charge to provide for a broker's compensation. B shares charge an annual distribution fee and shares redeemed within the first six years of issuance are subject to a contingent sales charge. After six years, class B shares convert to A shares, which carry no deferred sales charge or distribution fee. The C shares are sold without a front-end charge nor do they carry a contingent deferred sales charge. But they carry a higher distribution fee and do not convert to A shares.
"These two new classes of Thornburg share offerings are in response to investors seeking alternative ways of buying mutual funds. These changes also are indicative of the more aggressive marketing stance we will be taking, especially in competing with the variety of 'no-load' funds being offered directly to the public," said Mr. Thornburg.
The funds will continue to be offered solely through financial intermediaries.
BOSTON - Richard J. Snyder, formerly a senior associate at the consulting firm of Marchiel & Associates Inc., has joined AIM Fund Services Inc. as senior vice president of transfer agent operations.
In the newly created position, he will have overall responsibility for managing the operating departments within the firm, which runs $26 billion in mutual funds.