Pa.'s Meridian Selects SEI Corp. To Administer Its Funds Family

Meridian Bancorp, Reading, Pa., has selected a new distributor and administrator for its proprietary mutual funds.

As of May 1, SEI Corp., Wayne, Pa., will take over these duties, replacing a division of the Bisys Group, Inc. that had serviced the Conestoga Funds since $15.1 billion-asset Meridian launched the family five years ago.

Peter M. Welber, executive vice president of the Meridian Asset Management unit that oversees the funds, said the change did not reflect any dissatisfaction with the Bisys unit. Rather, he said, Meridian asked Bisys and several other fund servicers to bid on the contract when it came up for renewal.

SEI got the nod because it scored high in legal and compliance work, fund accounting, sales support, and willingness to sell "unbundled" services.

He explained that Meridian wants to bring in a number of companies to help it administer and run its funds, including a consultant hired recently to help craft distribution strategies.

By law, banks must tap nonbanks to manage distribution contracts with brokerages and trust units for their mutual funds. Most banks also use specialists for administrative work such as legal filings and fund accounting.

The Conestoga Funds have $650 million of assets, mostly from trust accounts. Meridian expects assets to reach $1.5 billion by midyear. Helping in the growth will the addition in May of balanced, international, and short-term bond funds to the family, bringing the total number of portfolios in the Conestoga funds to 11, Mr. Welber said.

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