Mexico fund insists it isn’t crapshoot, so it’s offering shoppers a sweepstakes

One can only hope that Wright Investors starts up a mutual fund that invests in Bora Bora, Tahiti or Monaco.

That’s because the Bridgeport, Conn., mutual fund company has introduced a sweepstakes for anyone interested in its $7.2 million no-load Wright Equifund-Mexico. The grand prize is an all expense-paid trip for two to Mexico. The winner — who does not have to invest — selects the travel destination. The contest ends Dec. 31 with the grand prize winner being selected in a random drawing set for mid-January.

Wright is now negotiating to have a Mexican government official draw the winning entry.

So what that the fund — with an average annual return of -7.5% since its August 1994 inception, shortly before Mexico devalued the peso, and a year-to-date return of 52% as of last week — has experienced enough volatility to give you Montezuma’s revenge. Wright, which manages the only open-end Mexico fund, hopes to raise awareness of the country and its equity investment opportunities.

“Everyone is trying to get people to listen to their message in a world of overkill,” says Stewart Rose, president of Wright’s sales subsidiary, Winthrop Marketing, “and people like to be rewarded for listening to your message. This is our way to get them to listen to the Mexico message.”

Web surfers targeted

So Wright created a splashy web page to explain the benefits of investing in the fund as part of an international portfolio or for further diversification.

At the site, individuals can order a prospectus. Anyone can enter for a chance to win the trip south of the border. To drive traffic to the site, Wright is mailing out tens of thousands of pieces of sales literature inviting individuals to “Discover Mexico for FREE!” The mailer features a photo of ancient ruins to showcase the country’s rich heritage.

Needless to say, getting a free trip to Mexico is not a sound reason to invest in a mutual fund, and some doubt that investors will take the bait.

“I think investors want quality and value, not trinkets,” says Angelo Calvello, president of the 100% No-Load Mutual Fund Council, an industry trade group in New York.

The firm manages a handful of other single country and single region funds, including the $11.2 million Wright Equifund-Netherlands, the $4.6 million Wright Equifund-Japan and the $5.1 million Wright Equifund-Hong Kong/ China. If the Mexico sweepstakes is a success, says Wright president Peter Donovan, the firm may consider offering similar trips to the other locales it invests in.

Wright, which collectively manages $4 billion for bank trust departments, corporations and other institutional investors, also manages a family of nine diversified funds under the Wright Blue Chip Mutual Funds moniker. Wright is also adviser to the Catholic Values Investment Trust.

“The idea of sparking interest through a contest is a good idea,” says Ellen DeDomenico, who runs a New York public relations firm for financial services companies. “It can alert people to a name without spending a lot of money,” she says. A contest that dovetails with a mailer can be fruitful, Ms. DeDomenico says.

“Lots of people will go to the website to register for the contest.” But a subsequent sale of the fund may be more elusive and will depend on what follow-up marketing materials the individual receives and whether those entering the online contest have a real interest in investing, she says.