, which offers only a
Dow 30 index fund for mutual fund investors, plans to offer seven more funds, including an actively managed technology fund.
Waterhouse is developing five index funds and two actively managed funds that will be run by portfolio managers from
, according to paperwork filed with the
Securities and Exchange Commission
. If the SEC approves the filing on schedule, the funds could be out in August.
Of the domestic index funds,
will track the investment-grade
Lehman Brothers Aggregate Bond Index
will track the mostly large-cap S&P 500 and
Extended Market Index
will mirror the small- and mid-cap
fund will track
Morgan Stanley's Pacific Free Index
, an index of 400 stocks listed in Japan, Australia, Hong Kong, New Zealand and Singapore. The
fund will mirror
Morgan Stanley's Europe Index
, which is comprised of 550 stocks from 15 different countries.
fund will be run by a team led by Raymond Mills, who has been with T. Rowe Price since 1998, before which he worked as a systems engineer. He isn't in charge of any T.Rowe funds currently, according to
. At least 65% of the fund will be invested in the
Goldman Sachs Technology Index
, according its filing.
fund will be run by Donald Peters, who also runs
T.Rowe Price Tax-Efficient Growth. The fund will focus on large-cap stocks in a low-turnover style that seeks to minimize capital gains distributions.
When it comes to expenses, these funds, which are sold without loads, or sales charges, are cheaper than most. Estimated annual fees on the index funds will range from 0.35% to 0.58%. Each will have lower annual expense ratios than their average peer, but in each case, index-fund titan
offers a cheaper option.
The Technology and Tax-Managed Growth fund's expense ratios are 1.25% and 1.10%, respectively. Both are lower than their average peer, according to Morningstar.
Schwab Jumps Into Sector Funds
Another online broker,
, kicked off a two-week subscription period for four new sector funds Monday.
The funds focus on technology, health care, financial services and communications.
previewed them on March 3.
In a subscription launch, investors can reserve shares for a set price, in this case $10. Schwab's subscription period ends June 30, and the funds will launch July 1.
Each no-load fund has a minimum initial investment of $5,000 and a 0.89% expense ratio, which is well below average, according to Morningstar.
Harbor International to Reopen
, the $5 billion
Harbor International Fund is reopening to new shareholders today.
The fund, one of Toledo-based Harbor's biggest, had been closed for almost seven years. It is sub-advised by Hakan Castegren of
Northern Cross Investments
, who also sub-advised the
Ivy International fund until two weeks ago.
But Ivy dumped Castegren from the portfolio, primarily because he refused to let that fund grow beyond the $2 billion it already had. Ivy hired Sheridan Reilly from
to manage the fund and immediately reopened it to attract new investors.
Now that Castegren has $2 billion less to worry about than before, Harbor is reopening its fund. Now Castegren will have some new dollars to put into some of his best international value ideas. Unfortunately, those ideas haven't proved competitive in the growth-charged climate.
The Harbor fund has been underperforming its foreign stock fund peers for the last two years and seems to be heading that way in 2000. It posted one of its worst underperforming years in 1999, trounced by 86% of its peers. But on a 10-year basis, Harbor is still ahead of more than 90% of the competition.
Castegren's value bent and the avoidance of Japan hurt the fund relative to others. During 1999, the portfolio stayed in financials and pharmaceuticals. Lately, he's moved to telecom, with Sweden's
as a top holding. He also has three holdings in Japan among the fund's top 10.
Dresdner Tech Managers Launch Hedge Fund
If you're a highflying tech manager, you don't have to bolt to start your own hedge fund. You could do it down the hall.
Huachen Chen and Walter Price did just that. The skippers of the until-recently sizzling
Dresdner RCM Global Technology
fund, are launching an internal hedge fund in partnership with Dresdner. It's the fund company's first foray into the semisecret world of hedge funds. Chen and Price will continue to manage the Global Technology fund while running the hedge fund.
Details of the new fund are still sketchy, says Joe Rusbarsky, head of marketing for the San Francisco-based group, but the hedge fund and mutual fund will have similar investment strategies, except the hedge fund will be allowed to short stocks and employ other exotic techniques.
Chen's and Price's Global Technology fund was up 183% in 1999, beating more than 84% of its technology sector peers -- a pretty significant return for a fund that eschewed buying initial public offerings. The duo were heavy into telecommunications and fiber optics at the end of 1999 that helped to draw such returns. And they've racked up an impressive three-year record, landing in the top 4% of the category.
``We thought that was a pretty good way to lead into the hedge fund,'' Rusbarsky says.
This year has been a challenge for the fund. The technology selloff in the
Nasdaq Composite Index
has whacked this fund particularly hard, and it's up a miniscule 0.5%, year-to-date, according to
Both Chen and Price have been with the fund since its 1995 inception.