Portfolio

Mutual fund companies providing 401(k)'s or other types of defined contribution plans may be in for a rash of lawsuits foiled by unhappy 401(k) investors, say industry executives and consultants.

There is a new player in the socially-responsible mutual fund arena. Friends Ivory & Sime, best known as an institutional global money manager based in London, has launched two new no-load socially responsible funds.

T. Rowe Price of Baltimore, Md. recently filed with the SEC to offer a new class of shares in an effort to improve distribution of ten funds to variable annuities, defined contribution plans and wrap programs, according to a company spokesperson. The new shares will include a 12b-1 fee of 25 basis points.

The Vanguard Group of Malvern, Pa. has filed registration statements with the SEC to introduce two new international index funds and to add an institutional share class for three existing international index funds, the company announced last week.

Capitalizing on recent market volatility, Putnam Investments of Boston started offering insurance on all of its funds Feb. 1, becoming the first independent fund company to offer this type of product.

Pilgrim Baxter & Associates of Wayne, Pa. will begin offering separate accounts in an effort to attract high-net-worth investors, according to Tom Florence, a senior vice president and director of the firm.

The money management arm of Waddell & Reed Financial of Overland Park, Kan. is planning to offer a tax-managed fund.

Charles Schwab's Mutual Fund OneSource hit a milestone late last month when the assets of its mutual fund marketplace reached the $100 billion mark. Approximately $30 billion of new money was invested during 1999, translating into a 47 percent increase in assets for the year.

Neuberger Berman of New York registered with the SEC last week to add a new technology growth fund that will be launched in May, according to Jennifer Silver, the company's managing director. The new fund will be managed by a team of portfolio managers led by Silver, according to Neuberger.

The number of employees switching asset allocations in their 401(k) programs increased in the month of January, according to an index released by Hewitt Associates of Chicago that measures the daily activity of 401(k) assets of 1.5 million employees.