While the merger between Bank of America and Fleet brought together two banking giants, the companies maligned mutual fund wings have not exactly felt an early flourish, The Boston Globe reports.
Because several of FleetBostons best money managers have left the firm in recent weeks, analysts say, the firm may be on shaky grounds in the credibility department. While most of those who have left the Columbia Management Advisors Inc. fund unit have already been replaced, an average showing by the funds coupled with the shifting of managers does not exactly look promising on the surface, especially so close after the merger.
Denver financial planner Ray Benton told The Globe that while pulling money out right away would not be the best option, a "more careful" watch should be put on the funds. "You don't feel as comfortable about using their funds," said Benton, who said he invests clients money in two of the funds that lost managers.
In interviews, the company has eschewed aside talk that it could ever run out of talented fund managers, pointing to the added firepower it has from the combined fund departments.