Fifth Third Adds 3 Retail Funds Via Conversion of Trust Assets

Fifth Third Bancorp's mutual fund division has added three new retail mutual funds to its Fountain Square Funds family by reorganizing common trust assets.

The two bond funds and one equity fund will be marketed to the bank's brokerage customers and 401(k) plan customers, said Scott Degerberg, vice president at Fifth Third Investment Advisors. The new funds bring the bank's menu of funds to five equity, five bond, and three money market portfolios.

This is the second time since 1992 the Cincinnati banking company has converted trust assets into mutual funds. Fifth Third started the Fountain Square Funds in 1988 with one money market fund. The new portfolios are Fountain Square Equity Income Fund, Fountain Square Bond Fund for Income, and Fountain Square Municipal Bond Fund.

Mr. Degerberg, who also oversees the bank's custody business, said there are no immediate plans to add additional funds to the bank's offerings. However, he said, the bank is always weighing options, and could add one or two more funds in the next 12 months.

Mr. Degerberg said he expects the funds to hold $2.7 billion by yearend, up from the current $2.4 billion.

"This is broadening our product line and making sure our fund family is diverse enough to handle each of our distribution segments," Mr. Degerberg said.

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