Funds Notebook: PaineWebber Brokers Raise $2.1 Billion for New Fund

PaineWebber (PWJ Quote) raised a record $2.1 billion for a new mutual fund during a recent six-week subscription period, a dramatic demonstration of the enduring power of old-school broker networks.

At the end of the subscription period, during which investors reserved shares in the new Strategy fund prior to launch, it had more money than 88% of other large-cap growth funds, according to Chicago fund-researcher Morningstar.

PaineWebber, which offered the fund exclusively through its 7,000-broker network, promptly closed it to new investment when the subscription period ended Nov. 29. ...