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SHAWMUT NATIONAL ONE OF FIRST COMPANIES IN NATION TO OFFER INVESTMENT FUND OF MID-CAP STOCKS DESIGNED TO COMPETE AGAINST NEW S&P INDEX

SHAWMUT NATIONAL ONE OF FIRST COMPANIES IN NATION TO OFFER INVESTMENT

FUND OF MID-CAP STOCKS DESIGNED TO COMPETE AGAINST NEW S&P INDEX
 HARTFORD, Conn., Dec. 19 /PRNewswire/ -- Shawmut National Corporation today announced that beginning in January of 1992 it will offer an investment fund of mid-capitalization (mid-cap) stocks designed to outperform a new Standard & Poors (S&P) index of mid-cap stocks. The S&P MidCap Index was introduced in June of this year. The Frank Russell Company announced a similar index only last month. Shawmut National's Mid-Cap Equity Fund will be offered initially to fiduciary institutional clients.
 Shawmut National broadly defines mid-cap stocks as companies with market capitalization of between $200 million and $5 billion. Generally, Shawmut National deems a company with market capitalization below $200 million as a small-cap stock and a company with market capitalization of over $5 billion as a large-cap stock.
 Shawmut National's Mid-Cap Equity Fund will be offered through the bank holding company's two principal subsidiaries: Connecticut National Bank in Connecticut and Shawmut Bank in Massachusetts. In response to the new interest in mid-cap issues, based in part on the introduction of the two new stock indexes, Shawmut National is one of the first companies in the country to offer an actively managed fund comprised of mid-cap stocks and designed to compete against the S&P MidCap Index.
 Robert Lee, vice president in Shawmut National's Investment Services Division, will manage the fund with Louis Conrad, a Shawmut National investment officer. "There has always been a good deal of interest in other sectors of the market, namely small-cap and large-cap stocks," Lee said. "However, as companies grow beyond the emerging-growth stage of small cap-stocks but do not become quite so large as the big names in the large-cap arena, they tend to fall between the cracks of Wall Street coverage. That leaves investors an opportunity. Many of these companies have been underfollowed, undervalued, and underowned."
 Other funds tied to stock indexes like the S&P 500 merely buy all issues in the respective index, and, therefore, are guaranteed to perform at the level of the index. Shawmut National's Mid-Cap Equity Fund, however, will be actively managed "with the goal of outperforming the new S&P MidCap Index of 400 stocks," Lee said. He noted that the investment themes of Shawmut National's new Mid-Cap Equity Fund will be concentrated initially in the following areas: health care cost containment, low-cost consumer outlets, environmental protection, the aging of the population, and a renewed national interest in savings accumulation.
 As one of the first companies in the country to offer an actively managed mid-cap stock fund designed to compete against the S&P MidCap Index, Shawmut National "will be able to take advantage of the growing interest in mid-cap issues," Lee said. In addition, the mid-cap product rounds out Shawmut National's fiduciary investment product mix, "filling the void between riskier, emerging-growth issues and more stable, large-cap issues." The fund fills a niche between Shawmut National's two S&P 500-based funds and its Small-Cap Fund.
 In terms of 10-year returns, Shawmut National's Small-Cap Fund for fiduciary institutional clients was recently rated by Piper, a nationally recognized investment performance measurement firm, as second in the universe of small-cap funds it tracks. The fund returned 21.0 percent, only .5 percent behind the small-cap leader in the 10-year return category, and well above the comparable return of 12.9 percent on the Russell 2000 Index, a commonly accepted benchmark for small-cap stock performance. In terms of a five-year return, Shawmut National's fund returned 20.0 percent to investors, ranking it sixth nationally and again well above the comparable Russell 2000 return of 8.2 percent. The Small-Cap Fund is managed by Peter Larson, vice president, Shawmut National Investment Services Division.
 Shawmut National Corporation is a superregional bank holding company with assets of $22.8 billion and headquarters in Hartford, Conn. and Boston, Mass.
 /CONTACT: Brent S. Di Giorgio of Shawmut National, 203-240-7632/
 (SNC) CO: Shawmut National Corporation ST: Connecticut IN: FIN SU:


SH -- NE004 -- 3759 12/19/91 09:56 EST
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Publication:PR Newswire
Date:Dec 19, 1991
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