BankAmerica Corp. is switching some of its funds to a "master-feeder" arrangement modeled after the hub-and-spoke system devised by Boston-based Signature Financial.
A source said it involves the old SeaFirst fund family that was taken over during the Security Pacific merger. BankAmerica declined to comment.
In a hub-and-spoke setup, the fund adviser acts as the hub, while the individual funds constitute the spokes. They share the investment results, but each spoke has its own fund administration. The spokes can be private label bank funds or different sales load classes.
Sources indicate that BankAmerica will set up the hub as a partnership through which flow taxes and profits to the spokes. This is very close to Signature's system.
Signature officials say they are taking a wait-and-see stance on BankAmerica's plans. But Signature is clearly protective of its innovation and is headed by a lawyer, Phil Coolidge.
Signature has taken out licenses and a patent on its proprietary fund-accounting software programs and a copyright on the hub-and-spoke name.
Concord Financial Group, an administrator and distributor of bank proprietary mutual funds, has promoted Irimga McKay to senior vice president and Richard A. Fabietti to senior vice president and treasurer.
Mr. Fabietti, who oversees Concord's corporate finance and mutual fund accounting, was instrumental in developing a structure for multiple classes of shares in his previous post as the company's controller.
Mr. Fabietti joined Concord in 1987, after serving as mutual funds assistant controller at Alliance Fund Services.
Ms. McKay manages Concord's retail telemarketing, shareholder and broker-dealer customer service and wholesaling activities.