Several companies have announced changes and new appointments in their subadviser lineups. Among the recent hires:
United Financial Management, Toronto, hired Edinburgh Fund Managers to replace Stein Roe & Farnham as manager of the $25 million (Canadian) United Global Growth mutual fund. Greg Gray, senior vice president of United Financial, said a new manager was needed because the fund, the United Venture Fund, changed its focus to global from primarily U.S.-oriented.
Warburg Pincus Counsellors Inc., New York, has selected Sparx Investment & Research USA as a subadviser for its new Japan OTC Fund. Sparx, a Japanese-owned firm, has offices in Honolulu and Tokyo.
Meanwhile, Warburg Pincus itself has been selected to subadvise a balanced fund for PNC Bank's RBB family of funds. The RBB Balanced Portfolio, which has been renamed the Warburg Pincus Balanced Fund, formerly was managed in-house and has less than $1 million in assets.
The Selected Family of Mutual Funds, Santa Fe, N.M., hired Bramwell Capital Management, New York, to sub-advise its $50 million Selected Special Shares mutual fund. The fund's previous portfolio manager, Shelby Davis, will concentrate on the other two funds he manages, the New York Venture Fund and the Selected American Shares Fund.
Dean Witter Reynolds, New York, selected TCW and Morgan Grenfell as subadvisers for a new global asset allocation mutual fund. The fund will invest in U.S. and foreign equities, fixed-income securities and money market instruments.
Principal Preservation Portfolios Inc., West Bend, Wis., 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.
Assets are being invested primarily in domestic midcap stocks.
Cambridge Series Trust, a series of funds sponsored by Cambridge Investment Advisers, Richmond, Va., has named Scudder, Stevens & Clark, New York, subadviser for a new global stock portfolio. The fund seeks capital appreciation.
PITTSBURGH - PNC Bank has introduced Class B shares for six mutual funds within its fund family. With Class B shares, the initial sales charge is replaced by a back-end or contingent deferred sales charge that is reduced incrementally each year the shares are held. Class B shares automatically convert to Class A shares at the end of the sixth year of ownership.
DALLAS - The Westwood Funds, a family of three mutual funds, eliminated the sales charge on its institutional class of shares and lowered its minimum to $1,000, effective immediately.
Shareholders have approved a new management contract with Teton Advisors LLC, a joint venture between Westwood Management Corp. and Gabelli Funds Inc. Gabelli will distribute and market the funds; Westwood will be the investment adviser.
NEW YORK - The SoGen International fund may reopen to new investors in the next six to nine months, according to its portfolio manager, Jean-Marie Eveillard.
But it will reopen only if the $1.9 billion fund finds enough attractive investments during that period to reduce its cash holdings, which currently are 18%. "If cash falls to 10% to 15%, and we have enough investment ideas, we might reopen it in six to nine months. We'll play it by ear," he said at a conference sponsored by Morningstar Inc., Chicago.
ASHLAND, Mass. - Money market funds experienced a "renaissance" in the third quarter, according to IBC/Donoghue, a firm tracking the performance of taxable funds.
While risk-averse individuals are moving back into money funds given the attractive rates, the firm's chief economist, Walter Frank, believes institutional money funds might lose assets as "money goes into the open market for short-term paper and T-bills."
Average total returns of all taxable funds rose 18.6% during the third quarter to an annualized 3.96%. Tax-free funds achieved a 12.6% increase to average 2.42%.
Mr. Frank expects higher yielding money funds to achieve returns of 5.75% to 6% by year end.
NEW YORK - David Pinto has joined Van Eck Global as senior managing director and head of a new bank distribution group. The unit was formed to market Van Eck's specialized global and precious metals mutual funds to banking institutions.
Mr. Pinto held positions at Dreyfus Corp. and Drexel Burnham Lambert, working almost exclusively distributing mutual funds through banks. His most recent position was as executive vice president of Hampton Investors Inc.
Christine Philip contributed to this column.