Union Bank of Calif. Picks SEI as Administrator of Fund Family

Union Bank of California has chosen SEI Corp. as administrator and distributor of its newly enlarged proprietary fund family.

Union now sports more than $4.3 billion in mutual fund assets as a result of its marriage last April with Bank of California. Union, a unit of Bank of Tokyo-Mitsubishi Ltd., plans to merge the U.S. banks' fund families by the end of the first quarter 1997.

SEI, based in Wayne, Pa., will provide administration and distribution services, wholesale and marketing support, and training for all Union Bank funds.

The bank chose SEI over Bisys Group of Little Falls, N.J. - Bank of California's fund administrator - because SEI has a San Francisco-based team, said R. Gregory Knopf, vice president and managing director of the funds.

Union Bank has been using SEI to administer and distribute its Stepstone funds since their inception in 1991. "SEI has been successful with us in growing assets," Mr. Knopf said, "and that's what it's all about."

The merger of the two fund families was approved last week by the respective boards, Mr. Knopf said. When the merger is final, 16 of the 25 funds will remain.

The bank plans to use the Stepstone name along with HighMark, the name used by Bank of California for its funds.

David B. Master, a consultant with Optima Group, Fairfield, Conn., said that when funds merge, shareholders usually pay more attention than usual to their investments, for better or worse.

"It's a marvelous opportunity to market the funds more actively than would otherwise be the case," Mr. Master said.

He suggested that companies use a merger as an excuse to initiate contact with investors.

"Anytime you put the spotlight on investments, it's not necessarily beneficial," Mr. Master said. While many people would not otherwise question their investment decisions, the administrative work and notification resulting from a merger prompts them to take a second look at their investments, he said.

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