BOSTON - Funds must develop innovative sales strategies through new channels if they want to counter rising costs and increased competition in fund supermarkets, according to industry executives.

"Competition for assets is intensifying," said A. Peter Cieszko, Jr., managing director of national distribution for Nuveen Managed Assets of Radnor, Pa. "There are low barriers for entry into supermarkets but high barriers to success. Costs are escalating while fees are dropping." Cieszko spoke at a conference on mutual fund supermarkets here last week, sponsored by the Institute for International Research of New York.

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