NEW YORK - Bankers Trust Global Investment Management has submitted a 66-page proposal to the Securities and Exchange Commission on a uniform mutual fund risk measurement tool.
Bankers Trust has been using such a risk measure internally since 1979 for activities ranging from derivatives trading to lending to ensure the activities fall within the bank's regulatory capital adequacy guidelines. Earlier this year, it established a separate strategic risk analysis unit for asset management.
Michelle McCarthy, managing director, said the approach analyzes a portfolio's holdings using the same variables firms use to mark to market net asset values each day. Each holding is broken into up to seven risk categories. For mutual fund holdings, the three most common are equity risk, interest rate risk and foreign exchange risk.
The final risk figure for a stock fund shows how much of the net asset value is sensitive to price changes in the general stock market. For bonds, it shows how much of a portfolio's duration is sensitive to interest rate changes. For a foreign stock fund, the figure shows how long a dollar-based investor's exposure is to foreign equity as a percentage of net asset value. All measures may also be compared to a benchmark.
The proposal included a hefty five pages of suggested wording firms could use to explain the methodology in a prospectus, but Ms. McCarthy said the final number would be user friendly.
"Calories are complicated numbers to compute but they are still useful statistics to people," she said.
People moves
BOSTON - John Hancock Funds has promoted two portfolio managers, Michael P. DiCarlo and James K. Ho, to senior vice presidents. Mr. DiCarlo runs the $900 million Special Equities Fund and the $250 million Special Opportunities Fund; Mr. Ho runs the $1.5 billion Sovereign Bond fund and two closed-end bond funds.
BOSTON - David Larrabee, formerly a vice president of State Street Bank and Trust Co., has joined Twentieth Century Cos. Inc. as an institutional marketing vice president. In the new position, he will be responsible for marketing the company's mutual funds and related services to banks and broker-dealers.
COLUMBUS, Ohio - James M. Galiano has joined Vista Broker-Dealer Services Inc. as sales manager for Vista's variable annuity, Vista Capital Advantage. Mr. Galiano comes to Vista from Guardian Investors Services in New York, where he was regional sales director. He also has managed the sales and systems development at Keystone Provident life Insurance Co. and New England Life Insurance Co.
Regis funds get new name
NEW YORK - The mutual funds offered by Regis Retirement Plan Services, will be re-named the UAM Funds Nov. 1. The Regis Funds, as they are now known, are managed by United Asset Management subsidiaries and are offered in a bundled service for defined contribution plans.
Mary Rudie Barneby, president of Regis, said the company also is likely to change its name early next year to UAM Retirement Plan Services.
Fund changes and additions
WHEATON, Ill. - Monetta Financial Services has launched two new mutual funds, the Monetta Large Cap Equity Fund and the Monetta Balanced Fund. These new funds join the Monetta Fund, which is a small-cap growth fund, and its Mid-Cap Equity, Intermediate Bond and Government Money Market funds. The funds are geared to individuals and companies with 401(k) plans.
LOS ANGELES - Payden & Rygel has begun offering its fixed-income mutual funds to retail investors through Jack White & Co., the discount broker.
The funds previously were available only to individuals with $100,000 or more to invest. Now they may be purchased for a minimum of $2,000.
The funds include a short-duration tax-exempt fund, an international fund, a U.S. Treasury fund and a longer maturity Opportunity fund.
PHOENIX - Yet another institutional product moving down market is being offered by Pilgrim America Group Inc., a new fund family established in April. The firm is launching a Masters Series of funds including the Asia-Pacific Equity fund, managed by HSBC Asset Management Americas Inc. and HSBC Asset Management Hong Kong Ltd. (units of Hong Kong and Shanghai Banking Corp.); the MidCap Value fund, managed by CRM Advisors LLC, an affiliate of Cramer Rosenthal McGlynn Inc., New York ; and the LargeCap Value Fund, managed by Ark Asset Management Co. Inc., New York.
The initial investment minimum is $1,000. Institutional accounts managed by the firms require initial investments of $5 million to $10 million.
BOSTON - Putnam Investments and Gruppo BIPOP, Brescia, Italy, signed a letter of intent to establish a venture for the creation, management and distribution of mutual funds in Italy.
Initially, Putnam will manage two existing mutual funds for the joint venture. The firm plans to introduce three new funds for BIPOP, a financial services firm, to distribute through its broker network. The venture is Putnam's first foray into the Italian market.
