NU Online News Service, Nov. 4, 2003, 5:32 p.m. EST – Lockwood Advisors Inc., Malvern, Pa., a subsidiary of The Bank of New York Company Inc., New York, has launched a mutual fund supermarket for financial advisors.

Financial advisors have to pay transaction fees to put money in 7,000 of the funds, but 1,400 of the funds have no transaction fees.

Lockwood is introducing the supermarket to reduce its reliance on selling separately managed accounts. Since early May, the firm has introduced several new products, including a group of registered hedge funds, a mortgage origination service, a passive municipal fixed-income fund, a mutual fund wrap program and an overlay separate account program.

Lockwood is offering two fund supermarket service levels.

The basic level provides access to the funds, automatic processing of the advisor’s fee and an online order-entry system.

When advisors sign up for “plus” level service, Lockwood will include the accounts on its Web-based Advisor Workstation and provide consolidated performance reporting.

Advisors who use Lockwood to manage their clients’ separate accounts will be able to put the clients’ mutual fund holdings on the same investment platform and reporting system, according to Lockwood President Christopher Tomecek.

Advisors can use the supermarket for their smaller accounts, and, as the portfolios mature, shift clients into more customized, tax-efficient vehicles without having to move them to a different platform, Tomecek says.