PRODUCT WATCH

Vanguard adds three index funds: one mid-cap and two small-cap

Vanguard Group has added three no-load mutual funds to its index trust.

They are Mid Capitalization Stock Portfolio, which seeks to parallel the investment performance of the Standard &Poor’s MidCap 400 Index; Small Capitalization Value Stock Portfolio, which seeks to replicate the investment performance of the S&P SmallCap 600/Barra Value Index; and Small Capitalization Growth Stock Portfolio, which seeks to track the Standard & Poor’s SmallCap 600/Barra Growth Index.

The subscription period for the new portfolios ends May 20.

The adviser will be Vanguard Core Management Group. The minimum initial investment for each portfolio is $3,000 for regular accounts and $1,000 for individual retirement accounts and custodial accounts. Beginning May 21, transaction fees of 25 basis points for the mid-cap portfolio and 1% for each of the two small-cap portfolios will be assessed.

Scudder Kemper makes REIT offering

Scudder Kemper Investments Inc. of Boston has launched a mutual fund that focuses on stock real estate investment trusts. Called the Scudder Real Estate Investment Trust, it will look for long-term growth in REITs and real estate-related companies in different markets, regions and property types.

Its portfolio management team includes Jennifer P. Carter, James “Mac” Eysenbach and Philip S. Fortuna.Ms. Carter is a senior quantitative analyst with a specialty in real estate in the global equity group. Mr. Fortuna and Mr. Eysenbach also manage Scudder Micro Cap Fund and Scudder Small Company Value Fund.

Minimum investment for the no-load fund is $2,500, or $1,000 for individual retirement or uniform gifts to minors accounts.

Jackson annuities, active or passive

Jackson National Life Insurance Co. has introduced the Perspective Advisors Fixed and Variable Annuity, which offers two asset allocation strategies. One allows investors to select from among 10 model portfolios ranging from “very” aggressive growth to stability, but the investments are managed passively. The other strategy has six portfolio choices, all actively managed.

EV has tax-managed international fund

Eaton Vance Management, the Boston mutual fund and investment manager, has introduced the Tax-Managed International Growth Fund. The new fund, which will be managed with an emphasis on after-tax returns, focuses on developed stock markets overseas, primarily those represented in the Morgan Stanley Capital International Europe, Australasia, Far East index.

Its minimum initial investment is $1,000. This fee is waived if a client opens an automatic withdrawal account with a minimum $50 monthly charge.

The load fund is managed by Armin J. Lang, who recently joined Eaton Vance. Earlier, Mr. Lang spent five years with Commerzbank Investment Management in Frankfurt as senior portfolio manager for international equity and balanced accounts.

Bond-learning tools now available online

Zoologic Inc., an educational software developer, is offering Bond Math 101 software, which allows professionals and students to learn and test themselves on concepts essential to the understanding of the bond market.

“BondMath 101 teaches basic fixed-income concepts and the mathematics behind these ideas,” says Kenneth Garbade, the software’s developer.

Mr. Garbade is senior adviser to Zoologic and professor of finance at the Stern School of Business at New York University.

Roth explained in short course

A new short course available this June from the College for Financial Planning explains rules and regulations governing Roth IRAs, how to assess when they’re suitable for a client and how to plan for a client’s eligibility.

The course, titled “Roth IRAs, Assessing the Opportunities,” includes an outline and two 90-minutes audiocassette tapes.

CheckFree lists after-tax reporting

The investment services division of CheckFree Corp. has rolled out two products designed to allow users of its APL and APL WRAP portfolio accounting systems to produce after-tax performance returns on the equity sectors of their portfolios for federal tax withholding purposes.

The first, PMAFTAX Report,can run on-line to create a monthly report. The other, Setnettaxes, allows the user to generate a number of performance reports on an after-tax basis.

Grantham aligns with forestry firm

Rayonier, a Stamford, Conn.-based international forest products company, has joined with Grantham Mayo Van Otterloo & Co. LLC in an alliance to seek timber and forest management investment opportunities worldwide.

Grantham Mayo, which manages over $25 billion globally in investment funds, recently established the Forestry Fund 1.

Rayonier will also have the opportunity to invest, up to 25 percent, in the properties it manages for the company.

Quaker puts 4 funds on Schwab shelves

Four Quaker mutual funds are available through Charles Schwab & Co. Inc.’s Mutual Fund OneSource Program. They are: The Core Equity Fund, managed by Bruce Marra of West Chester Capital Advisors in Pennsylvania; the Mid-Cap Value Fund, managed by Chris O’Keefe of Wilmington, Del.-based Compu-Val Investments; the Small-Cap Value Fund, managed by Ted Aronson of Philadelphia-based Aronson and Partners; and the Fixed Income Fund, managed by Wiley Angell of St. Louis-based Fiduciary Asset Management.

These money managers previously had been available to investors only through large separate accounts.

Send product news and information to Wendy Hong at InvestmentNews, 220 E. 42nd St., Ninth Floor, New York, N.Y. 10017-5846.