BOSTON - Scudder, Stevens & Clark Inc. launched the Scudder Pathway Series of mutual funds of funds. The no-load portfolios invest in Scudder mutual funds to meet four investment objectives.
The Scudder Pathway Growth Portfolio seeks long-term growth of capital and allocates assets among Scudder's growth mutual funds, both large- and small-cap and growth and value. The Pathway Balanced Portfolio seeks growth and income. The Conservative Portfolio invests primarily in Scudder bond funds, seeking current income and, secondarily, long-term growth. The Pathway International Portfolio seeks to maximize total return by allocating assets between global and international funds.
Dan Gross, a Scudder principal, said the new funds eventually might replace the Scudder Managed Retirement Trust series of commingled funds, which invest in Scudder mutual funds with somewhat similar investment objectives.
The Pathway mutual funds were introduced because the collective trusts are only available to the qualified plan market and cannot be used by 403(b) and 457 plans, for individual retirement accounts or by retail investors. "We wanted to offer an asset allocation solution which can be used by the whole defined contribution plan market," Mr. Gross said.
Benjamin W. Thorndike is the lead manager of the Pathway series of portfolios. Other managers on the team include Maureen F. Allyn, chief economist; Adam M. Greshin, a bond manager; Margaret D. Hadzima, director of the institutional group; and Cornelia M. Small, director of global equity investments.
Boston Partners offers first fund
BOSTON - Institutional money manager Boston Partners Asset Management L.P. introduced its first mutual fund, the Boston Partners Large Cap Value Fund.
The fund will be managed by Mark Donovan and Wayne Sharp using the same equity investment style used in the management of separate accounts for pension clients - focusing on low price-book and low price-earnings ratios. The fund has a minimum target of 65% of assets invested in companies with market capitalizations of $1 billion or more with a value component.
PNC Bank N.A., Philadelphia, was hired as the fund's trustee. The new fund will be distributed through Counsellors Securities Inc., a subsidiary of Warburg, Pincus Counsellors Inc., New York.
There are three share classes, including an institutional class for small pension plans with a $100,000 minimum investment. Investor-class shares are no load and available through brokers financial advisers with a 1.25% operating expense for investments of at least $10,000. Adviser-class shares are available through independent financial planners with a 1.50% fee on a $10,000 minimum investment.
Fund strategy offered
MINNEAPOLIS - In a reverse of the typical pattern, Investment Advisers Inc. is rolling out an institutional investment strategy that mirrors the investment style of one of its most successful mutual funds, the IAI Capital Appreciation fund.
IAI will offer the small-capitalization, core growth style of the mutual fund through separate accounts, as well as collective and common trusts.
The Capital Appreciation fund, managed by Marty Calihan, seeks to identify a broadly diversified group of small-cap stocks with leadership potential in their sectors, outstanding management and fundamental improvement in share value. About 60 to 80 stocks are held in both the mutual fund and in individual separate accounts. The small-cap core growth equity strategy will use the same models for stock selection as the mutual fund does.
IAI is offering the strategy to institutional investors because its first small-cap product, the Emerging Growth Mutual fund, and its companion institutional separate and commingled account capability are closed to new investors, said Kip Knelman, executive vice president.
SAN FRANCISCO - The four new mutual funds managed by institutional manager GMG/Seneca Capital Management L.L.C. were added to Charles Schwab & Co.'s OneSource mutual fund program in December. Eric Munson, managing director of GMG/Seneca, said the Growth, Mid-Cap EDGE, Bond and Real Estate funds' institutional and administrative shares will be offered on a no-load, no-transaction-fee basis through the program. The funds already are included in Schwab's MarketPlace program, which does charge transaction fees.
GMG/Seneca is exploring other mutual fund supermarket avenues of distribution for its funds, which are targeted to institutional investors, said Mr. Munson. The funds have attracted four defined contribution plan clients since their March inception; Mr. Munson would not identify the clients.
DENVER - BBOI Worldwide L.L.C., the joint venture between Berger Associates Inc. and Bank of Ireland Asset Management (U.S.) Ltd., launched a no-load international equity mutual fund.
The Berger/BIAM International Fund, benchmarked to the Morgan Stanley Capital International Europe Australasia Far East Index, will invest at least 65% of assets in at least five countries outside the United States; it will be subadvised by BIAM and marketed by Berger.
Managers start funds
WAYNE, Pa. - Pilgrim Baxter and Associates is preparing to launch its first mutual funds with Newbold's Asset Management Inc.
Pilgrim Baxter's PBHG Strategic Small Company fund will be run by Jim Smith of PBHG for growth and Jim Farrell of Newbold's for value. Gary Pilgrim will help the two portfolio managers tilt allocations between growth and value. The fund will be capped at $250 million. Another fund is the PBHG Large Cap Value fund; it will be run solely by Newbold's.
Separately, the new PBHG Large Cap 20 fund, managed by James McCall, will invest in no more than 20 large-cap stocks with strong earnings growth potential. Most companies will have market caps of more than $5 billion, although the fund's mandate allows investment in stocks with market caps as low as $1 billion.
World equity opportunities
BOSTON - The Pioneer Group launched the Pioneer World Equity Fund.
It is being managed by Patrick Smith, who runs the offshore Pioneer Global Equity Fund and the U.S.-registered Pioneer Europe Fund. The fund will invest in 140 to 160 U.S. and foreign stocks, including emerging market securities. The U.S. market also will be underweighted to make room for smaller markets.
"We combine analysis of fundamental data and market risk to determine country allocations, then we start the individual stock selection, which also incorporates some quantitative methods," Mr. Smith said.
Pru emerging growth fund set
NEWARK, N.J. - Prudential Investments launched the Prudential Emerging Growth Fund, managed by Susan Hirch, the fund she was hired to manage and create when she joined Prudential earlier this year from Lehman Brothers.
The new fund will invest in small and midsized companies that show the potential for above-average growth. Quantitative screens will be combined with fundamental, bottom-up analysis to identify companies positioned to capitalize on market changes or to penetrate new market niches in an emerging growth stage.
The new fund will be available to both institutional and retail investors, through Prudential Securities' 6,000 financial advisers through January and then also through Pruco Securities' 14,000 registered representatives.
Mercedes Cardona and Marlene Givant Star contributed.