BankAmerica Corp. has merged a $42.6 billion corporate bond fund into its Pacific Horizon fund family.
The Bunker Hill Income Securities Fund, which BankAmerica had operated as a closed-end mutual fund, has been reorganized as an open-end fund.
It has been renamed the Pacific Horizon Corporate Bond Fund.
The transaction, announced Jan. 24, was approved by shareholders last week.
BankAmerica took over management of the Bunker Hill fund in 1992, when the San Francisco banking company merged with Security Pacific Corp. of Los Angeles.
Closed-end mutual funds are a less liquid version of the more familiar open-end mutual fund.
Both Types Are Diversified
Both types of funds are diversified portfolios of investment securities. But whereas open-end funds issue new shares and redeem existing shares upon request, closed-end funds have a fixed number of shares and are traded on a stock exchange.
The addition of the corporate bond fund brings to 16 the number of portfolios in the Pacific Horizon proprietary family.
At yearned, the fund family had $12.9 billion of assets.
As part of the agreement, BankAmerica gave Bunker Hill shareholders the right to buy Pacific Horizon funds on a no-load basis.
The bank will also waive administrative and advisory fees on the bond fund for the next six months.
Concord Financial Group, New York, distributes the Pacific Horizon funds.
