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.
"There is a high level of opportunity in the separate account wrap programs and it makes sense for us to go into this market," he said. Florence cited a projected 20 percent annual sales growth rate in separate accounts until 2005 as one reason the company is entering the market.
The separate accounts will include a version of Pilgrim Baxter's Large Cap 20 Fund as well as small- and medium-cap offerings, Florence said.
Pilgrim Baxter is negotiating with a wrap provider and will announce a deal within the next month, Florence said. He declined to identify the company.