MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, May 7, 1999 Stein Roe Restructures Funds Stein Roe Mutual Funds today announced a major restructuring of several of its equity funds. According to the company, the product initiatives are part of a larger program at Stein Roe that also includes a significant increase in resources supporting equity portfolio managers. These resources will include hiring additional research professionals in the equity area and increased use of technology to support the investment process. A company spokesperson told the MFWire that the new hires would most likely include 8-10 equity analysts that concentrate on growth sectors, including technology, health care, and financial services. "These changes result from a lengthy and thoughtful review of our equity investment function that included all of our portfolio managers," said Thomas W. Butch, president of Stein Roe Mutual Funds. "They are intended to create a more competitive and attractive product line and to strengthen our capacity to provide consistently strong equity fund performance." Stein Roe Capital Opportunities Fund will merge into Stein Roe Growth Investor Fund and its manager, Gloria Santella, will be leaving the firm. Capital Opportunities, a recently launched multicap growth fund which, through a "master/feeder" structure, invests in the same portfolio of equity securities as the Stein Roe Young Investor Fund. The master fund in which Growth Investor Fund invests is managed by Erik P. Gustafson and David P. Brady. Pending the merger, Gustafson and Brady become co-managers of Capital Opportunities Fund. Gerry M. Sandel, the manager of the Stein Roe Special Fund will also leave the company, and the portfolio will be assigned immediately to Daniel K. Cantor, manager of Stein Roe Growth & Income Fund. The Fund will pursue a midcap blend investment strategy and will be renamed Stein Roe Disciplined Stock Fund. Stein Roe Special Venture Fund will be liquidated on or before June 28, 1999. The decision to liquidate the fund was prompted by its small asset size and its uncompetitive performance record. Shareholders will have the option to redirect their investments to other Stein Roe funds in advance of the liquidation. Stein Roe Growth Opportunities Fund will be restructured to emphasize a midcap growth investment strategy versus its current multicap strategy. It will be renamed Stein Roe Midcap Growth Fund and will continue to be managed by Eric Maddix and Arthur J. McQueen. "With these initiatives, we are addressing the most significant issues in our equity product line and redirecting significant assets to better performing products," said Butch. Printed from: MFWire.com/story.asp?s=24834 Copyright 1999, InvestmentWires, Inc. All Rights Reserved |