TACOMA, Wash. - Frank Russell Co. expanded its mutual fund services to Australia, where it now offers its series of multistyle, multimanager mutual funds to retail investors and small to midsized superannuation funds.
The funds are available to institutional investors through Russell Implemented Consulting, part of Russell's consulting services practice, based in Sydney. Retail investors can access the funds through the national financial planning network of ANZ, an Australian bank.
In early 1998, Russell and ANZ will launch a personalized financial planning program for individual investors, using the funds.
State Street rakes in business
BOSTON - State Street Corp. won $55 billion in new mutual fund custody business in the first six months of 1997.
New mutual fund clients such as Baupost, Bull & Bear, Markman, Munder and Reliastar contributed to the new growth. Existing customers that expanded their relationships with the bank were Warburg Pincus, MFS, Evergreen Keystone, Northstar, Phoenix, PaineWebber, Metropolitan Life, INVESCO, Landmark and John Hancock.
State Street Bank's total mutual fund assets under custody were $1.5 trillion as of June 30. State Street provides custody services for about 40% of all registered U.S. mutual funds.
Trust invests in REITs
NEW YORK - Smith Barney introduced a $250 million investment trust invested in real estate investment trusts. Twelve stocks were chosen for the new trust - the Equity Focus Trusts: REIT Portfolio Series.
The stocks in the portfolio are concentrated in income-oriented equity REITs with holdings that are diversified by geographic location and property type.
David Sherman is lead research analyst for the trust.
The unit investment trust is one of the first to offer units at net asset value, on a no-load basis. The trust accomplished this by buying REIT company shares directly from the issuer, instead of through open market purchases.
Dreyfus may close fund
NEW YORK - For the first time in its history, The Dreyfus Corp. might close one of its mutual funds.
At the request of David L. Diamond, lead portfolio manager for the $310 million Dreyfus Small Company Value Fund, the fund's board voted to close the fund to new investors if assets reach $500 million. Additional contributions from existing shareholders still will be accepted.
Officials for Dreyfus said cash flows into the fund have been accelerating as small-capitalization value stock performance has improved and the rapid increase in assets has made it difficult for Mr. Diamond to remain fully invested.
Vanguard alters asset reporting
MALVERN, Pa. - The Vanguard Group of Investment Cos. announced it will only provide fund net asset information on a month-end basis. The company has for years reported individual fund assets on a daily basis, but officials said an increasing focus on daily cash flows derived from the daily accounting practice was compromising the interests of shareholders. Such a focus on daily cash flows also conflicted with the long-term approach to mutual fund investing Vanguard promotes.
Schwab targets small DC plans
SAN FRANCISCO - Charles Schwab Retirement Plan Services initiated a new, lower cost bundled service for small and midsized defined contribution plans through its network of broker dealers. A key feature of the enhanced service for 401(k) plans is the addition of asset-based pricing with no fees on assets held in Schwab's Mutual Fund OneSource funds. The service spares small plans the cost of using an outside trustee by being self-trusteed through the Schwab broker dealer network.
Scudder, Stevens & Clark Inc., Boston, introduced an International Growth & Income Fund, with Sheridan P. Reilly being lead manager. The fund attracted $25 million from 3,300 accounts during a subscription period.
Scudder also announced the debut of the Scudder Financial Services Fund, co-managed by Thaddeus W. Paluszek, Peter A. Taylor and William F. Truscott. Messrs. Paluszek and Taylor are equity analysts; Mr. Truscott is director of global equity research. The no-load sector fund will invest primarily in stocks of banks, insurance companies, investment companies and other financial services providers.
Scudder also named Mark Boyadjian lead manager of the Scudder GNMA Fund and the AARP GNMA & U.S. Treasury Fund, replacing David Glen who moved to Scudder's institutional group. Mr. Boyadjian most recently was head of Scudder's mortgage products development and the mortgage trading desk.
Baron Capital Inc., New York, fared well in the launch of its Baron Small Cap Fund, attracting more than $108 million in initial subscriptions.
It was Baron's most successful fund launch. About $75 million came from the Mutual Fund OneSource program from Charles Schwab Corp., San Francisco.
Christine Williamson can be reached by e-mail at [email protected]