Nvest of Boston said it has designated its mutual fund wrap account business a separate subsidiary.
The company named Hugh M. Kelly to head the unit, called Nvest Managed Account Services Co., which had been part of Nvest Advisor Services. Mr. Kelly was national sales director of Nvest Advisor Services.
Wrap accounts, in which investors pay an annual fee to an adviser for managing a customized portfolio of mutual funds, have become increasingly popular in recent years, through they have been slower to catch on at bank brokerages.
Most of Managed Account Services' efforts will consist of developing relationships with Merrill Lynch, PaineWebber Inc., Prudential Securities, and Raymond James Financial Inc., a spokeswoman said.
Nvest, which is 48% owned by Metropolitan Life Insurance Co., has 17 investment and distribution affiliates, including six fund families. It was managing $127 billion of assets on Sept. 30, the company said.