Union Bank of California has hired a small distributor to help sell its Stepstone mutual funds outside the bank.
R. Gregory Knopf, managing director of the Stepstone Funds, said he has always wanted wider distribution for the portfolios. The funds now perform strongly and enjoy enough name recognition to sell well through financial advisers and regional broker-dealers, he added.
To that end, Union Bank hired Golden Star Distributors, a company run by two former Kemper Corp. executives and based in Danville, Calif. Golden Star plans to shop the funds in Colorado, Texas, California, and Oklahoma.
"The bank channel is only one avenue," Mr. Knopf said. "I think we have an excellent story and can sufficiently increase our external distribution, increase revenue and asset growth."
By selling the Stepstone funds outside Union Bank's offices, Mr. Knopf said, he hopes to boost assets under management by $100 million this year.
The San Francisco-based unit of Unionbancal Corp. appears to be in good position to reach its goal.
"What makes the Stepstone Funds appealing is, they have good performance across the board," said Karl Marx, one of Golden Star's two principals.
One fund in the family was awarded five stars-the highest honor bestowed - by Morningstar, the mutual fund rating agency. Three Stepstone portfolios sport four stars.
That should make the funds an easy sell, Mr. Marx said, so Union Bank will get priority attention from the three full-time wholesalers and one part-timer at Golden Star. Mr. Marx spent most of his career as a sales manager at Kemper, as did his partner, Bill Underhill.
Because Golden Star is small and has been in business only since 1995, Mr. Marx said he told Mr. Knopf that his sales effort would start slowly. Mr. Knopf had no objection, since the fund complex is still completing its merger with HighMark Mutual Funds. The fund families came together when Union Bank merged with Bank of California last year.
