Unionbancal Corp., which is mostly owned by Bank of Tokyo-Mitsubishi, has unveiled the HighMark Small Cap Value Fund.

The fund will buy undervalued companies with a $1.5 billion capitalization or less, both in the United States and elsewhere, said R. Gregory Knopf, a managing director with HighMark Capital Management.

About 75% of the portfolio will consist of U.S. stocks, said Mr. Knopf. The international portion will be subadvised by Brandes International Partners, San Diego, he said.

Mr. Knopf said the idea for the fund was born through management of the flagship HighMark Large Cap Value Momentum Fund, where the bank identified "equities across a wide spectrum." Some were small-cap companies, he said.

The $8 billion-asset HighMark Funds family now includes 17 funds.

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