AT THE BELL

Stein Roe loses another exec

In the second high-level departure in recent weeks, Philip Crosley has left as head of marketing to advisers for Stein Roe & Farnham Inc. in Chicago to join Boston-based Loomis Sayles & Co. Mr. Crosley is moving back to his home town of Denver, where he will market to 401(k) plans, wrap programs and variable annuity providers. A Stein Roe spokeswoman says no replacement has been found. Earlier Timothy Armour stepped down as chief executive to join Morningstar Inc. Thomas Butch is the new CEO.

Fidelity closeout: 1 up, 2 down

Investors are rapidly yanking money out of two of the three mutual funds that Fidelity Investments plans to close to new investors after Friday. The $11.6-billion Low-Priced Stock fund has suffered a net outflow of $18 million since the closings were announced March 19, according to Alpha Equity Research of Portsmouth, N.H. Contrafund, which has $32.2 billion in assets, has experienced a $2 million outflow. The fund that has taken in new assets is the $40.9 billion Growth & Income fund, which picked up $206 million, according to Alpha. Fidelity won’t comment, citing its policy against discussing individual funds’ asset flow.

The good handout people

Allstate Corp. quadrupled the pay of its two top executives last year. Chairman and Chief Executive Officer Jerry Choate received cash, restricted stock and other benefits totaling $4.94 million in 1997, vs. $1.1 million in 1996. President and chief operating officer Edward Liddy received $4.5 million, up from $1 million in 1996. Operating income for the Northbrook, Ill.-based insurer rose 51% last year to $2.4 billion. Total revenue was $24.95 billion.

Lord Abbett says ‘enough’

Seeking to preserve the “true value style” of its $640 million small-cap retail mutual fund, Lord Abbett & Co. is closing its Research Fund – Small Cap Series to new investors on April 9, when the fund’s assets are expected to hit $650 million. The move marks the first time the New York-based load fund shop
, which specializes in value investing, has ever closed a fund. “Other small-cap funds that have grown too large have had to veer from their investment style to remain competitive,” says Michael McLaughlin, director of marketing. “Lord Abbett won’t do that.” (See related story on Page 1.) Not to worry, though; $150 million of the new Alpha Series Fund – a fund of funds investing in three Lord Abbett small-cap mutual funds, including the one being closed to new retail investors – will be set aside for value investments.

MFS issues APB for a No. 2

Jeffrey Shames, the new head of Boston-based Massachusetts Financial Services, is searching in-house for a No. 2 person to help run the $77.6 billion mutual fund company. Mr. Shames, who became chairman, chief executive and president following the unexpected death of A. Keith Brodkin early last month, says he hopes to appoint a new president in the next six months. Candidates include John Ballen, chief equity officer; Thomas Cashman, senior vice president; Joseph Dello Russo, treasurer and chief operating officer; Kevin Parke, director of research; Arnold Scott, general counsel; and William Scott, president of MFS Fund Distributor Inc.

Etc.: SEC mulls ‘event’ filing

The Securities and Exchange Commission is mulling plans to require mutual funds to file “event-driven” reports. Such events might include the resignation of a fund manager. The public documents would be similar to the 8K reports that public companies are expected to file when something significant happens, such as the loss of a major client or corporate change. . . . Edgar D. “Ned” Jannotta Jr., whose father stepped down as chief of William Blair & Co. LLC three years ago, is giving up his partnership to join another firm, reports sister publication Crain’s Chicago business. In two weeks, the younger Jannotta will become a partner in one of the corporate successors to split-up leveraged buyout group Golder Thoma Cressey Rauner Inc., where he worked before join
ing Blair in the late 1980s. At GTCR Golder Rauner LLC, he will gain an equity stake denied him at Golder Thoma. . . And Crain’s New York Business reports Trautman Kramer & Co. is set to launch an unusual mutual fund that will invest 10% of its assets in companies not yet public, making it the only open-end fund marketed as a vehicle for private equity investment.