AT THE BELL

Fund gains for Japanese seen

Contrary to popular belief, foreign money managers will lose ground in Japan’s up-and-coming mutual fund marketplace over the next five years, according to a study to be released later this week by Boston-based research and consulting firm Cerulli Associates Inc. Cerulli predicts that foreign money managers will see their collective share of Japan’s fund business slip to 14% from 16%. One explanation is that local investors are likely to favor hometown firms.

Bad quarter for financials

Though there were more losers than winners in the third quarter, no fund group took it on the chin as hard as financial services. As a group, those funds were off by 12.67%, according to preliminary data from Lipper Inc., worse even than Latin American funds. Investors are overreacting to the possibility of higher interest rates, says David Dreman, portfolio manager of the Kemper-Dreman Financial Services fund. “There’s no fundamental reason for this,” he insists.

IPO fees stay down

Securities and Exchange Commission registration fees for companies going public were scheduled to go down to $264 for each $1 million worth of securities registered as of Friday. But, due to the appropriations bill impasse between Congress and President Clinton, the fees will stay at their current level of $278 a million. The new SEC budget, once the appropriations bill is passed, is to rise to $361 million from the fiscal 1999 level of $337 million.

Waterhouse offers referrals

Discount brokerage TD Waterhouse Group Inc. launched AdvisorDirect, which refers customers with at least $100,000 to invest to fee-based planners. To participate, planners must be registered with the Securities and Exchange Commission, have at least $15 million in advisory assets in Waterhouse custody and have at least five years of money management experience or a chartered financial analyst designation. The company isn’t limiting the number of advisers to whom it refers clients.

U.S. Global sees loss

U.S. Global Investors Inc. of San Antonio lost $1.9 million in operations for the fiscal year ended June 30. The registered investment advisory firm, which manages 14 mutual funds holding $1.3 billion, suffered as Asian and Eastern European stocks as well as commodities went into the tank.

CRA still sticking point

Republican leaders working on financial deregulation legislation agreed to try to iron out differences between the House and Senate bills among themselves and submit a final proposal for approval next week. But Democrats on the committees formulating the bills complained they’re being left out in the cold, so the bill that is produced might not be signed by President Clinton. Chief differences revolve around the Community Reinvestment Act, the 1977 law requiring banks to invest in low-income communities. The House bill expands the measure to cover for the first time bank deposits that are not federally insured, while the Senate bill rolls it back by exempting small banks from its provisions.

Liberty hires marketer

Liberty Financial Cos. Inc. of Boston, which manages more than $62.7 billion, named Phillip Fragasso as managing director of marketing of its various mutual fund and annuity subsidiaries, including Colonial Management Associates, Stein Roe & Farnham and Keyport Life Insurance Co. He had been a marketing executive for 13 years with Sun Life of Canada.

What fools these mortals be

Merrill Lynch & Co. Inc. has hired Seneca Capital of San Francisco to manage the mid-cap portion of its private client wrap accounts. Seneca, named for the Roman philosopher who didn’t think much of mortals, manages $8.5 billion for institutional clients. It’s among 36 firms to be tapped by Merrill.

UAM casts web

United Asset Management, a Boston money management firm, is planning its first live webcast at 9 p.m. EST Wednesday with one of its fund managers, Harindra de Silva, at www.uam.com.