When in doubt, shuffle deck chairs

If you’re one of those people who fear change, then the management reshuffling at AIM Management Group Inc. might make you cringe.

The Houston-based mutual fund company, which got burned a few years ago by its tech-stock-heavy portfolios, is back to tinkering with the lineup of its investment management team.

AIM, which has recently implemented a string of portfolio manager changes, may announce even more refinements next month, says spokesman Ivy McLemore.

“I don’t anticipate anything out of the ordinary,” Mr. McLemore says. “Perhaps another promotion or two.” He declined to elaborate.

The changes come as AIM, like most fund shops these days, is scrambling to stanch outflows. AIM posted net outflows of $8.5 billion in 2002, up dramatically from $3.2 billion a year earlier, according to Financial Research Corp. in Boston.

AIM, owned by AMVESCAP PLC of London, has been a hotbed of portfolio management changes in recent months. The company runs 72 retail and institutional mutual funds with about $124 billion in total assets.

Part of the reshuffling stems from a work force reduction that got under way late last year. That program, which reduced the company’s work force by 248 people, led to the voluntary retirement of four managers.

Recycling PROGRAM

Observers insist the recent personnel shifts shouldn’t send shareholders packing.

“They are definitely trying to tighten things up,” says Bridget Hughes, a senior analyst at Chicago-based fund tracker Morningstar Inc. “But I don’t see these changes as a huge problem for shareholders. It’s not indicative of a huge amount of upheaval.”

And unlike most fund companies, AIM has a reputation for being extremely loyal to its fund managers, many of whom start at the company as analysts, Ms. Hughes notes.

But there’s more at play.

AIM hasn’t dismissed any of the managers and none of the managers is being moved out of a lead position. Some of the reshuffling appears to be aimed at strengthening individual management teams.

It’s also aimed at reducing the number of funds overseen by some managers, presumably to allow those managers to give the funds greater attention.

For example, Robert M. Kippes, lead portfolio manager of the $1.9 billion AIM Aggressive Growth Fund, was recently replaced by former senior equity analyst Karl Farmer on $107 million AIM Emerging Growth.

On AIM Global Growth, which has $506 million in assets, Kirk Anderson has replaced Monika H. Degan, a co-manager on both the $2.5 billion AIM Blue Chip Fund and the $2.4 billion AIM Weingarten Fund.

“You are constantly looking at how your resources are allocated,” Mr. McLemore says.

Meanwhile, bond fund manager Scot Johnson was added to the portfolio management team of AIM Global Income, which has $144 million in assets. And Robert Cannon Coleman II, a senior analyst, was added to a team that oversees the $177 million AIM Large Cap Basic Value Fund.

MORE CHANGES IN PIPELINE

Even as AIM downplays the recent personnel changes, other previously announced changes are set to take place in May.

Mr. Farmer will replace Ryan Crane at $1.9 billion AIM Aggressive Growth and Mr. Anderson will replace Jonathan C. Schoolar on AIM Blue Chip, which has $2.5 billion in assets.

Meanwhile, David Pointer, a senior analyst, will take over the $3.1 billion AIM Charter, a large-cap-blend fund, from Michael Yellen, who will continue to oversee other AIM funds. Christian Costanzo, a senior analyst, and Robert Lloyd, a technology fund manager, will replace Mr. Kippes on AIM Constellation, a large-cap-growth fund with $6.8 billion in assets.

Edgar M. Larsen, who will remain AIM’s chief investment officer, will come off AIM Dent Demographic Trends, a $444-million large-cap growth fund. He will be replaced on that fund by Mr. Anderson and James G. Birdsall, a senior analyst.

On the $134 million AIM Mid Cap Growth Fund, Kenneth Zschappel, Mr. Crane and Mr. Kippes are being replaced by Mr. Farmer. Despite all the recent changes, Mr. McLemore insists nothing unusual is in the works.

“If we were trying to do something that was very different, or represented a considerable departure from what we have done in the past, we would make a bigger deal of it,” he says.