Conseco Capital Management looks to keep competitive with a series of new funds in 2001.

Four funds are in the planning stages, but details are not available yet.

"We're really market driven and the market's asking for small-cap," said Conseco spokesman Craig Andrews. "They'd like to see some value offerings. We're looking as some international offerings and we're looking to add to our fixed-income even."

Plagued by portfolio manager defections this year, the company has decided to embrace sub-advisement for its equity funds. Furthermore, while next year's fixed-income fund will be managed in-house, Conseco will contemplate using sub-advisors in the future.

The change is not designed to address performance issues, as Conseco asserted its timely reaction to the departures had no ill effects on the portfolios.

"We did have a lift-out of our management team, but we moved very quickly to stabilize the portfolios," explained Andrews. He added that the company has met and even exceeded performance expectations.

Nonetheless, the company took the crisis as a sign to reevaluate its business model. Maxwell Bublitz, Conseco's president and CEO, and a senior management committee, led to the present change.

"We were at the fork in the road: do we rebuild the team, or do we bring in the best possible teams to run the funds in a sub-advised relationship?" said Andrews.

 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE