HONG KONG - Timothy F. McCarthy, formerly head of the Investment Advisor Group of Fidelity Investments, Boston, has been named director and chief executive officer of Jardine Fleming in Hong Kong. He succeeds Tony Doggart who was running the Hong Kong operation on an interim basis but will now return to London.
Mr. McCarthy will be responsible for expanding Jardine Fleming Unit Trusts throughout the Asian region and broadening the array of investment products to include more income- and global-oriented funds. The firm will leverage its relationship with London partner Robert Fleming. Jardine Fleming runs $23 billion by itself; with Robert Fleming, assets total $75 billion.
During his seven years with Fidelity, Mr. McCarthy helped spearhead the dramatic growth of its global brokerage and mutual fund services business.
At Fidelity, he will be replaced by Mark D. Collier, the architect of Fidelity Brokerage Services Ltd., the firm's U.K. discount brokerage operation. Mr. Collier has been named president of Fidelity Investment Advisor Group in Boston.
Mr. Collier's duties in London will be assumed by David Plucinsky, who has been director of operations and systems at the London-based firm since April 1994.
VALLEY FORGE, Pa. - The Vanguard Group, a firm known for its low cost structure, plans to begin charging transaction fees for some of its index mutual fund portfolios.
The fees are intended to offset the cost of buying or selling securities of small to midsized companies and international companies. For instance, the emerging markets portfolio, the first indexed vehicle for that sector, will charge a 2% purchase fee and a 1% redemption fee. Others, like the European portfolio and domestic small-cap portfolio, will charge lower purchase fees of 1% with no redemption fees.
Vanguard expects the fees to enhance performance and help the funds better track their benchmarks.
BOSTON - Fidelity Investments has introduced the first open-end stock mutual fund to invest primarily in North American companies expected to benefit from exporting.
Investible firms must earn 10% or more of their annual revenues from the sale of exported goods and services. Also, companies may be engaged in export-related businesses such as export trading or management.
Arieh Coll, manager of the Fidelity Select Brokerage and Investment Management portfolio, will manage the fund.
According to Fidelity's research, an investment portfolio consisting of firms with exports exceeding 10% of sales would have outperformed the S&P 500 in seven of the last 10 years.
PHILADELPHIA - Glenmede Trust Co. named Pictet International Management to subadvise an emerging markets portfolio for its proprietary series of mutual funds.
The fund will seek long-term capital growth by investing at least 65% of assets in emerging markets equities.
MINNEAPOLIS - Norwest Bank named Schroder Capital as subadviser for a new series of asset allocation funds it plans to launch.
The funds will invest in other funds, as well as stocks and bonds.
Schroder will advise the international portfolio and subadvise the other funds that buy international securities. Norwest will advise the small-company and index portfolios.
NEW YORK - NYLIFE Distributors Inc., a wholly owned subsidiary of New York Life Insurance Co., is expanding its MainStay Family of Funds with The addition of two funds to be run by MacKay-Shields Financial Corp., a subsidiary of New York Life.
The funds are MainStay International Equity and International Bond. The stock fund takes a top-down approach to country selection and focuses on large established companies with attractive growth prospects. The bond fund also employs a top-down approach, investing at least 65% in foreign debt, primarily government securities.
The funds carry a contingent deferred sales charge which declines from 5% to zero after six years.
In addition to these and 10 other funds managed by MacKay-Shields, the MainStay Family has funds managed by Quorum Capital Management and Monitor Capital Advisors, which are also New York Life subsidiaries.
CHICAGO - In an expansion of its mutual fund offerings to institutional and retail clients, First National Bank of Chicago named Concord Holding Corp. administrator for the First Prairie Funds, a $1.3 billion fund family. The funds are: five money market funds, including two institutional funds; a fixed income portfolio; two municipal portfolios and one diversified portfolio.
J. Stephen Baine, senior vice president of First Chicago and leader of its investment management group, said the firm is in the process of developing new funds and hopes Concord and its distribution subsidiary, Concord Financial Group Inc., will help in that effort.
BOSTON - First National Bank of Boston named Kleinwort Benson subadviser to a new mutual fund, the 1784 International Equity Fund. At least 65% of the fund will be invested in stocks of foreign companies with a good growth record.
MOUNTAIN VIEW, Calif. - In the first of its type, the Benham Group has launched a global natural resources index mutual fund.
The no-load fund is designed to track the basic materials and energy sectors of the Dow Jones World Stock Index. The fund invests in stocks of companies in mining, processing or cultivating of raw materials such as oil, metals and forest products.
The fund's operating expenses will be limited to 0.75%, as compared with the average of 2% for actively-managed natural resources funds.
NEW YORK - The $70 million Advisors Fund L.P. named the Davis Skaggs division of Smith Barney Strategy Advisors as its new adviser. The firm replaces Ardsley Advisory Partners and Mark Asset Management, which resigned July 27.
The subadvisers were dismissed because of the fund's lower than expected returns and the fund's relatively high expense ratio. The fund experienced a 12.6% loss in the first half of 1994, said Heath McLendon, executive vice president of Smith Barney.
Subject to shareholder approval, the $70 million Advisors fund will be merged into the $500 million Smith Barney Shearson Fundamental Value fund.
CHICAGO - Nuveen Institutional Advisory Corp., Chicago, plans to seek an equity manager as subadviser for an unusual new mutual fund combining municipal bonds and common stocks.
It hopes to raise at least $2 million, with 100,000 shares priced at $20. Nuveen will invest 60% to 80% of the fund in municipal bonds. The closed-end fund will be called the Nuveen Municipal Growth Fund.