Someday, the Internet might be a compelling way to distribute mutual funds, but today it remains tough to beat a wirehouse when it comes to fund sales, if PaineWebber's recent experience is any indication.
PaineWebber of New York and its sales force of approximately 7,250 registered representatives have raised a record $2.1 billion for the new PaineWebber Strategy Fund, according to Mitchell Hutchins Asset Management of New York, PaineWebber's asset management unit. PaineWebber reps raised those assets in a subscription period that began Oct. 11 and concluded Nov. 29, the company said.
The Strategy Fund invests in the securities on PaineWebber's list of recommended stocks. The list usually includes approximately 25 companies.
The successful introduction of the Strategy Fund demonstrates the power of PaineWebber's distribution network, said Brian Storms, president and chief operating officer of Mitchell Hutchins, in a statement.
Mitchell Hutchins has $65 billion in assets under management.