Fund Openings, Closings, Manager Moves: Marsico International Opportunities' Manager Named

As Inspector Clouseau would say, the case is solved.

James Gendelman will run Marsico International New Opportunities, the new all-cap international growth fund slated for a June or July launch, according to paperwork filed with the Securities and Exchange Commission Wednesday. In March, Denver-based Marsico Capital Management registered the fund but didn't disclose its manager.

Gendelman joins the firm from Goldman Sachs (GS), where he'd spent the past 13 years with the international sales unit. Previously, he worked as an accountant with Ernst & Young. The filing doesn't note any prior fund management experience. For more details on the fund, see TSC's March 24 preview.

A Sweetened Pioneer

Struggling Pioneer Funds, bought for a fat premium two weeks ago by Unicredito Italiano, is offering brokers a sweetened deal of its own this summer.

Through Aug. 31, Boston-based Pioneer is boosting the commission it pays to brokerages that sell class A shares of its 24 funds, according to paperwork filed with the SEC. So when investors pay the maximum 5.75% and 4.5% sales charges on stock and bond funds, respectively, that means Pioneer is paying out an extra 0.5% to 0.75% to participating brokerages.

The practice is called full dealer reallowance. While it's fairly common -- MFS is currently offering boosted payouts on two of its sector funds -- few investors are aware of it unless they are in the habit of combing through regulatory filings.

Pioneer also will pay firms an extra 0.5% on class B share sales through Aug. 31, and may pay some firms additional commissions based on firm-wide sales of Pioneer funds over a given period, according to the filing.

In addition, the filing says Pioneer also may pay "cash and other incentives" to firms for selling Pioneer funds. These incentives may include paying for sales and training programs for brokers and educational seminars for their clients.

Most investors are unaware of these types of promotional offers because they don't impact sales charges and most often are disclosed in obscure filings, like a fund's SAI, or statement of additional information, or occasional supplements to a prospectus, as in this case.

Critics say that offering boosted payouts and other promotions could create a conflict of interest, in which some less-scrupulous brokers might sell a fund for its higher payout rather than its quality and suitability for meeting a client's needs.

American Century Sign-up Periods Begin

Investors can start putting money in American Century's new no-load Life Sciences and Technology funds starting Thursday, even though the funds don't launch until the end of June.

During the prelaunch subscription period, investors can reserve launch-day shares in the funds at $5 each through American Century or online broker Charles Schwab. When the subscription period ends on June 29, the pledged dollars are collected and given to the funds' managers, who build the portfolio.

TSC previewed the biotech fund on March 13 and the tech fund on March 22.

See Monday's Fund Openings, Closings, Manager Moves.

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