Chase Manhattan Corp. is planning a series of steps to boost its overseas mutual fund sales, especially in Europe.
The moves, which include tapping European banks to sell the funds, are intended to expand a program that has already experienced heady growth.
Chase had $660 million in off-shore funds as of March 31, one and a half times the assets at yearend 1992, according to Lipper Analytical Services' Inc. of Summit, N.J.
William A. Semmes, the Chase vice president in charge of the overseas funds, said the bank aims to grow its offshore fund assets to $1 billion by the end of this year, and to $2 billion by the end of 1995.
"It's part of a strategy and plan that they've been laying for the past couple of years," Mr. Semmes said. "Now they're getting into the implementation stage."
Before coming to Chase earlier this year, Mr. Semmes ran American Express Co.'s Luxembourg-based mutual fund business.
Popular Investments
Overseas funds are run out of tax-shelters, such as the Cayman Islands or Luxembourg; and, by law, are not available to American investors becaUse they do not follow this country's tax and operating rules.
But these funds have proven popular with foreign investors. According to Lipper, some $315 billion of assets were invested in these funds as of March, nearly twice the level at the end of 1992.
Currently, Chase's 13 overseas mutual funds are domiciled in the Bahamas and registered in Hong Kong.
They are sold primarily to Chase's private banking and securities custody customers in Europe, Latin America, and Asia.
Chase expects much of its growth to come from registering the funds in Europe, which it plans to do later this year.
This-will make it possible for Chase to publicly advertise its funds and to get other firms to sell them - principally banks, which dominate the European fund business.
Mr. Semmes added that Chase has hired seasoned foreign fixed-income investment managers in London to improve its investment prowess, and is considering launching new equity funds aimed at Hong Kong investors.
Chase and Citicorp are the only American banks among the leaders in the offshore mutual fund business, according to Lipper.
But Philip W. Coolidge, chief executive of Signature Financial Group, of Boston, said he expects more banks to get into the business.
The evidence several of Signature's current and prospective clients are planning overseas versions of domestic funds and are eyeing Signature to help with the distribution work.
Swiss, German Dominance
William G. McBride, Lipper's overseas fund expert, said the business is dominated by big Swiss and German banks that cater to the wealthy.
The 15 American fund managers active in the business only had a total of $21 billion of assets as of March, about twice the assets they had at the end of 1992.
The biggest American firm in the overseas fund business at the end of March was Merrill Lynch & Co., Inc., with $4.44 billion in assets.
Merrill was followed by Fidelity Investments, with $3.49 billion,
Citicorp was third on the list with $3.16 billion of assets, up from $1.32 billion at the end of 1992. Chase ranked ninth.
