Bank of Boston Corp. has selected SEI Corp. to administer and distribute the mutual funds it acquired in the recent takeover of BayBanks Inc.

SEI replaces Federated Services Co. of Pittsburgh, which had been administrator and distributor for BayBank's six-portfolio, $1.8 billion- asset fund family.

The switch in vendors for the BayFunds paves the way for the upcoming merger with Bank of Boston's proprietary funds, which have $3.4 billion in assets. SEI Corp., Wayne, Pa., has been administrator and distributor for Bank of Boston's 1784 Funds since the line was launched in 1993.

The expected marriage of the two fund families follows Bank of Boston's acquisition of BayBanks Inc., which was completed June 30.

Bank of Boston has already filed documents with the Securities and Exchange Commission to merge the fund families and hopes to complete the transaction by the end of the year, said Allen W. Croessman, managing director of retail marketing and mutual funds.

The resulting $5.2 billion-asset fund family would carry the 1784 name, Mr. Croessman said, but that could change down the road.

"It's the kind of thing we'd look at as far as the bank's overall approach to branding and positioning," Mr. Croessman said.

For now, the bank's top priority for mutual funds "is completing the merger and making sure the shareholders understand what's going on," Mr. Croessman said.

As part of the SEC filing, Bank of Boston has proposed launching a prime money market portfolio, Mr. Croessman said.

The merged fund family's assets will be split about evenly between long- term and money market funds, he said.

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