Hibernia National Bank, New Orleans, recently converted its last collective trust fund to a mutual fund structure.
Available since mid-July, the Tower Mid-Cap Equity Fund focuses on midsize companies with a stock value of $500 million to $10 billion. A minimum of $1,000 is required to invest, and subsequent purchases can be made for $100.
The fund is managed by John A. Cain, who oversaw the collective trust fund. The trust fund, created in May 1986, was started as a growth fund but became a mid-cap equity fund in June 1992, said James C. McElroy, chief investment officer of Hibernia's trust department. Its investors were primarily employee benefit plans, whereas the mutual fund targets individual clients. "This provided much more flexibility to the participants," Mr. McElroy said.
The Tower Mutual Funds comprise seven funds with about $1 billion of assets under management. Hibernia Corp. had $12.6 billion of assets at June 30.