Scudder, Stevens&Clark
SCUDDER, STEVENS & CLARK
Background
Scudder, one of the nation's first investment counseling firms, founded in 1919 by Theodore Scudder, Haven Clark, and Sydney Stevens, had performed a successful development until 1993. Especially in 1980s and the beginning of 1990s its mutual fund business was one of the fastest growing mutual fund families in terms of growing account numbers, asset size, and revenues. Meanwhile, thanks to corporate pension plan sponsors directing their funds to large sophisticated and diversified money management firms, its institutional business was also growing. Scudder's mutual fund business was the first to introduce international mutual fund and no-load mutual funds in the U.S. in 1970s. The firm's investment counseling business was executed by geographically separate offices (Boston, New York Philadelphia, Dallas etc.). In the course of time, some of these district offices became specialized teams on the investment side of the business (for example, equity research analysts and portfolio managers in New York office, fixed income specialists in Boston office). Parallel to its domestic growth, the firm's international branches had been opened and international instruments offered had been increased in numbers. In 1980s, with the expansion in the organization structure and the increase in the instruments offered, the firm had improved both its database and service technology; furthermore the firm's organizational structure was changed from partnership form to corporate form. Its service policy was based on direct marketing. Its basic concern in providing its services was to deliver quality investment services and to add value for its clients and therefore, their investment portfolios were composed investment instruments with relatively low risk and moderate return.
Key Issues
Between 1919 and 1993, Scudder had had a successful business life in terms of a number of aspects, such as offering new types of products (both national and
Background
Scudder, one of the nation's first investment counseling firms, founded in 1919 by Theodore Scudder, Haven Clark, and Sydney Stevens, had performed a successful development until 1993. Especially in 1980s and the beginning of 1990s its mutual fund business was one of the fastest growing mutual fund families in terms of growing account numbers, asset size, and revenues. Meanwhile, thanks to corporate pension plan sponsors directing their funds to large sophisticated and diversified money management firms, its institutional business was also growing. Scudder's mutual fund business was the first to introduce international mutual fund and no-load mutual funds in the U.S. in 1970s. The firm's investment counseling business was executed by geographically separate offices (Boston, New York Philadelphia, Dallas etc.). In the course of time, some of these district offices became specialized teams on the investment side of the business (for example, equity research analysts and portfolio managers in New York office, fixed income specialists in Boston office). Parallel to its domestic growth, the firm's international branches had been opened and international instruments offered had been increased in numbers. In 1980s, with the expansion in the organization structure and the increase in the instruments offered, the firm had improved both its database and service technology; furthermore the firm's organizational structure was changed from partnership form to corporate form. Its service policy was based on direct marketing. Its basic concern in providing its services was to deliver quality investment services and to add value for its clients and therefore, their investment portfolios were composed investment instruments with relatively low risk and moderate return.
Key Issues
Between 1919 and 1993, Scudder had had a successful business life in terms of a number of aspects, such as offering new types of products (both national and