Northern Trust Corp. will open its first high-yield bond funds for retail investors on Thursday.

The Northern Trust High Yield Municipal Fund and the Northern Trust High Yield Fixed Income Fund will be managed by Jane McCart.

"Because Northern has its trust roots, that was not an area that Northern was involved in," she said. "We are going to offer this product in a more conservative way."

Ms. McCart joined Chicago-based Northern Trust from Stein Roe & Farnham, also in Chicago, on Nov. 9 as a vice president. She had managed the Stein Roe High Yield Municipals Fund and the Stein Roe Managed Municipals Fund, which have $329 million and $583 million of assets under management, respectively.

Management of those portfolios shifted on Oct. 19 to Colonial Group Inc., Boston, another fund company owned by Liberty Financial Cos. The new managers, who became dual employees of Colonial and Stein Roe, are Maureen Newman for the Stein Roe Municipals Fund and William Loring and Brian Hartford for the Managed Municipals fund.

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