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Managers Fund Adds New Sub-Adviser

The Managers International Equity Fund has hired a third manager to sub-advise a portion of the $675 million fund. Mastholm Asset Management of Bellevue, Wash. will begin managing an initial $25 million to $35 million portion of the fund's assets on March 27. The Managers Funds, a subsidiary of Affiliated Managers Group of Boston, sponsors nine no-load mutual funds, each managed by one or more independent advisers selected by The Managers Funds.

Mastholm was founded in 1997 and specializes in international equity management services to institutional investors. Mastholm joins the fund's two other fund sub-advisers: Scudder Kemper Investments and Lazard Asset Management, both of New York.

The intention is to, during the year, increase the portion Mastholm manages up to one-third of the fund, said Tom Hoffman, director of research for The Managers Funds. The fund will initially turn its cash on hand over to Mastholm rather than sell holdings and shift proceeds to Mastholm.

"We don't want to create taxable gains," Hoffman said.

While Lazard is a bottom-up large-cap value manager and Scudder Kemper follows a top-down, thematic large-cap, blended investment discipline, Mastholm focuses on the mid-cap growth sector, said Hoffman.

"We wanted to get some growth exposure," he said.