Bank of America overhauling mutual fund offerings

Bank of America overhauling mutual fund offerings

(Reuters) - Bank of America  will provide research coverage on all of its mutual fund offerings, a move that will require it to get rid of some underperforming and unpopular funds, a company spokesman said on Friday.

Bank of America offers over 3,500 mutual funds to its Merrill Lynch brokerage and investment advisory clients, currently providing in-depth coverage on only about 20 percent of them. It will increase the percentage over time until it eventually covers all the funds it offers while also adding investment recommendations, Bank of America spokesman Matthew Card said.

In order to be able to cover more funds, the bank will not offer new investors some funds that are poor performers and have not attracted much money. The entire review process is expected to take 18 months, Card said.

Additionally, Bank of America will work with mutual fund companies to standardize certain fee waivers, which are overly complex, Card said.

Many of these changes were first reported on Friday by Ignites, a wealth management industry trade publication.