Chase Starts Up a Small-Cap Fund Like Popular One It Closed in Jan.

Chase Manhattan has launched a mutual fund to fill a gap created in its product lineup when it closed a similar fund to new investors.

The Vista Small Cap Opportunities Fund should attract investors who might otherwise have gone into the Vista Small Cap Equity Fund, said Mark Rapp, a vice president at Vista Capital Management, Chase Manhattan's investment management arm.

The Small Cap Equity Fund was closed to new investors in January when its assets reached $500 million, Mr. Rapp explained.

Mr. Rapp said the timing for the new fund was right because share prices for funds that invest in small-capitalization companies have been either stagnant or have fallen this year, but earnings have been strong.

"When you look at small-cap companies overall, there's so much opportunity for them in the future," Mr. Rapp said.

There are now 76 small-cap fund portfolios offered by 55 different banks, according to Lipper Analytical Services, Summit, N.J. These funds hold a combined $13.2 billion of assets.

The Vista Funds had $26.5 billion of assets under management on March 31, according to Lipper, placing Chase fifth among all banks that manage mutual funds.