Buy one, get one free
From Morningstar
Charles Schwab is trying to cozy up to the high-net-worth set with its purchase of US Trust. The acquisition of Excelsior Funds appears to be the cherry on the sundae. The purchase comes with 26 Excelsior stock and bond funds, which have about $10 billion in assets. Schwab has no plans to alter either the operation or the promotion of the funds.

Putnam's new CIO
From Morningstar
Deborah Kuenstner will become Putnam's new chief investment officer for the large-cap value team at the end of the first quarter. One of Kuenstner's main goals is to make Putnam's value-product line more distinctive. In addition to her new job, Kuenstner will manage three funds. Kuenstner takes over for Anthony Kreisel, who is retiring.

Another move at Kemper
From Morningstar
In the latest in a series of personnel moves, Kemper named Deborah Koch the new co-manager on the Technology fund, replacing Tracy McCormick. McCormick will remain an analyst on the fund.

Is Schwab skewed?
From The Street.com
As The MFWire.com reported yesterday, Baron has launched the new iOpportunity fund, and Schwab has agreed to market it. This is an arrangement that occurs three or four times each year -- Schwab heavily promotes a new mutual fund to customers and advisers during the fund's subscription period, and in return, the fund's adviser pays Schwab something extra in addition to the regular supermarket fee. Some feel the fee gives Schwab an extra stake in certain funds, resulting in extra promotion and a conflict of interest. Not surprisingly, Schwab disagrees. "There's no sales pressure or incentives to our employees. It's just another example of Schwab being an innovator," says spokesman Morrisson Shaffroth.

Fidelity changes direction
From The Wall Street Journal
Fidelity has plenty of cash, and it has been on a shopping spree lately. In recent months, managers of some of Fidelity's biggest funds, including Magellan, Contrafund and Growth and Income, have slashed their cash positions and added new stocks. Some analysts think they're trying to buy non-blue-chip shares that, according to traditional measures, are undervalued relative to the rest of the market. "I see this as a clear message that Fidelity sees opportunities in small and mid-cap stocks," said Jim Lowell, editor of the Fidelity Investor newsletter. The move would be a change for Magellan, which has been scoring big with large-cap holdings like General Electric and Home Depot.  

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