Assets in mutual funds shot past the $1.8 trillion mark for the first time in June, the Investment Company Institute reported.

Continued strong sales helped fuel the surge. Sales of long-term mutual funds - that is, stock and bond funds - totaled $40.7 billion in June, outpacing May's $36.9 billion.

In June 1992, long-term fund sales totaled $28.3 billion.

Bond funds were the top sellers, drawing $22.8 billion during June.

Stock funds took in $17.9 billion. Funds specializing in growth-and-income stocks led all categories, accounting for $6.5 billion in sales.

At the end of June, assets in bond funds totaled $673.1 billion. Stock funds claimed $580.4 billion. Taxable money market funds had $452.9 billion in assets, while tax-exempt money funds had $97 billion.

Liberty Spruces Up

Its Variable Annuity

Liberty Financial Cos. has revamped the variable annuity product it markets to banks.

The Boston investment product supplier introduced Preferred Advisor, replacing its eight-year-old Keyflex variable annunity.

Preferred Advisor was developed by Keyport Life Insurance, a divison of Liberty.

Variable annuities are tax deferred products that give customers the opportunity to choose from among a number of mutual fund-type investments.

Preferred Advisor features three new fund choices, managed by Colonial Management Associates of Boston.

The new funds invest in utilities, U.S. government securities, and growth and income stocks.

Preferred Advisor also retains seven fund options that the Keyflex annuity offered.

These choices, which include money market and asset allocation funds, are managed by Stein Roe & Farnham of Chicago, a Liberty affiliate.

Other new features include a reduction, to $250 from $1,000, in the minimum for additional investments in the annuity.

The so called "add-on" minimum was lowered to make the product accessible to more people, a spokeswoman said.

Liberty feels Preferred Advisor offers more flexibility than other annuities. Investors can discontinue payments at any time and take a lump-sum payout. They can, however, face tax penalties for doing this.

Griffin to Head Unit

Of Midland Savings

Midland Savings Bank, a Des Moines thrift, has named Lee Griffin as president of its Midland Investment Services unit.

Mr. Griffin win retain his position as vice president of retail banking for the thrift, Iowa's largest. Both the thrift and the investment services unit are subsidiaries of the Central Companies.

Midland Investment Services specializes in selling mutual funds, annuities, securities, and life insurance. It was established in 1986, and its cumulative sales volume recently topped the $200 million mark. Of that, nearly $40 billion was sold in 1992 alone.

Mr. Griffin said his aim is to enhance coordination between the thrift and the investment unit.

Alfred P. Moore, Midland's president, said Mr. Griffin's new position is "a natural extension of the work he's already doing in retail banking."

Marshall & Ilsley Taps

Presidents of 2 Units

Marshall and Ilsley Corp., the holding company of Marshall & Ilsley Bank in Milwaukee, has elected presidents for its trust and investment management units.

Morry L. Bimbaum, division head of corporate trust services since 1979, has become president of Marshall & Ilsley Trust Co. He succeeds Michael J. Revane, who is retiring.

Mr. Bimbaum, 45, joined M&I in 1969 as a tax analyst. He graduated from the University of Wisconsin-Milwaukee with a major in finance.

David W. Schulz, 35, was elected president of M&I Investment Management Corp. A chartered financial analyst, he has been director of fixed-income since 1990. He joined the bank in 1980 as a fixed-income portfolio manager.

He earned a BBA degree in finance and accounting at the University of Wisconsin.

Mr. Schulz takes over for William J. Gumerman, who resigned, according to the bank.

Marshall & Isley Corp. has 37 affiliated banks in Wisconsin and Arizona.

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