Bank South launches a full-service broker-dealer.

Bank South Corp. has opened its first full-service broker-dealer, a move that pits the Atlanta banking company against a cadre of respected investment marketers.

But a senior bank official predicted that the unit will do well, and not only make Bank South a stronger investments marketer but boost its new Peachtree family of mutual funds.

"It would probably be premature to talk about sales figures, but prospects are good," said James H. Overholt, president of the new Bank South Investment Services unit.

For six years the $6.6 billion-asset banking company has operated a discount brokerage that sells investments by telephone.

The full-service broker plans will go further by making an investments marketer available for every one of Bank South's 145 branches in Georgia.

Specifically, by yearend the broker plans to hire 140 specialists with Series 6 licenses from the National Association of Securities Dealers. These licenses will allow them to sell mutual funds, variable annuities, and variable life insurance.

They will be supplemented by another 36 brokers already hired that have the broader Series 7 licenses that allow them to sell a broader range of investments.

The ratio of investment sales specialists to branches will split the difference between the ratios at local rivals First Union Corp. and NationsBank Corp. First Union is building up a sales force of two Series 6 licensed marketers for every branch, while NationsBank is hiring one Series 7 broker for every two branches.

Bank South has been known to go to great lengths to woo retail customers. Last year the bank opened 48 mini-branches in local Kroger and Piggly Wiggly supermarkets. Bank officials hope use their new investment sales force to sell their mutual funds through these outlets.

The bank launched its proprietary Peachtree funds in April but so far has offered the funds just to the bank's more affluent clientele and a few of its retail customers, Mr. Overholt said.

To date, the Peachtree funds have gathered $355 million of assets under management, mostly through restructurings of trust assets.

In addition to the Peachtree funds, Bank South's discount and full-service brokers sell more than 200 mutual funds from other companies, including Fidelity Investments, Colonial Group Inc., Putnam Investments, and Dreyfus Corp.

Bank South has some stiff competition, according to Eli Neusner, of Cerulli Associates, Boston.

In addition to competing against First Union and NationsBank, Bank South's new broker-dealer will compete with the respected investments unit of Atlanta's SunTrust Banks Inc.

Bank South also will compete with insurance marketing companies such as Coverdell and Co., Atlanta, and Jackson Mutual Life Cos., Lansing, Mich., which also have a strong presence in the area.

Nevertheless, Mr. Overholt is confident.

"We have the products, resources, and expertise to help our customers reach their financial goals, whether it's a college education for their children or a secure retirement," he said.

"It doesn't matter if they are ready for their first savings plan or if they are a seasoned investor. We can make it simple and convenient."

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