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, November 16, 2001 American Century Reorg Underway In yet another sign that fund firms are starting to make the hard choices, American Century has joined the ranks of reorganizing fund shops. The firm is making two distinct moves with the aim of bolstering growing business by reallocating resources from lower growth areas. The business emphasis changes will affect 200 employees. At least 64 employees involved in the reorganization have accepted offers from the firm. Separately, the firm is reorganizing its fixed income unit. Six employees, including three fund managers (David Schroeder, Theresa Fennel and Bryan Karcher) are leaving American Century's bond group. The firm has shifted resources to parts of business with greatest growth potential and scaled back others with slower growth explained a spokesperson. The four business earmarked for additional resources are the firm's institutional business (primarily separate accounts for defined benefit plans, foundations and endowments), JP Morgan | American Century Retirement Plan Services (bundled defined contribution), third-party distribution and product management and development. As a part of the changes the firm is opening 130 positions in the four units for which the effect personnel may apply. The changes are a reflection of American Century's changing business model. Until 1990 the firm primarily sold directly to shareholders. At that time, it created its third-party distribution unit which now accounts for roughly 70 percent of inflows at the firm. In 1996 it brought out its first multi-share class product. Printed from: MFWire.com/story.asp?s=27224 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |