Enterprise Unveils Low-Cost Versions of Nicholas-Applegate Funds
Enterprise Funds
cloned seven
Nicholas-Applegate
funds for fat cats and institutional investors and brought them to the retail market on Tuesday, according to a company announcement. The list of rookie funds includes a clone of the top health care fund over the last year.
Here are the new broker-sold Enterprise funds and the Nicholas-Applegate funds they're modeled on: Enterprise Global Health Care (
(NAGHX)
Nicholas-Applegate Global Health Care), Enterprise Large-Cap (
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Nicholas-Applegate Large-Cap Growth), Enterprise Emerging Countries (
(NAEIX)
Nicholas-Applegate Emerging Countries), Enterprise International Core Growth (
(NACIX)
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Nicholas-Applegate International Core Growth), Enterprise Mid-Cap Growth (
(NACGX)
Nicholas-Applegate Mid Cap Growth), Enterprise Worldwide Growth (
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Nicholas-Applegate Worldwide Growth), and Enterprise Convertible Securities (
(NIGIX)
Nicholas-Applegate Convertible Securities).
The good news is that each of these Enterprise funds will have the same management team as the Nicholas-Applegate fund they're modeled on. Those funds, which typically have $250,000 minimum investments, have solid track records versus their peers, according to
Morningstar
. The new funds' miminum levels are most easily digested: $1,000 for standard taxable accounts, $250 for retirement plans like an IRA.
The Nicholas-Applegate Global Health Care fund might draw the most attention initially since it has officially achieved highflier status. The fund, just over a year old, has ridden a fat bet on the sizzling biotechnology sector to a 25% return that tops all health care funds, according to Morningstar.
The bad news is that these funds aren't looking like bargains. The funds' Class A shares will carry a maximum 4.75% front-end load or sales charge. Class B and Class C shares will levy a maximum 5% and 1% back-end load or sales charge, respectively, according to the funds' regulatory filings.
The funds also typically have estimated annual expenses above their average peer's. These costs could make the funds a tough sell, though some investors and brokers will probably be intrigued by the prospect of getting access to institutional portfolio management.
