Mutual fund companies entering foreign markets should aim to strike a balance between adjusting to the local culture and imposing head office values if they are to succeed, according to industry representatives.

Firms must also chose the appropriate distribution channels for their products. The funds must also be adjusted to suit the local market, panelists at a mutual fund conference said yesterday.

John Cogan Jr., President of Boston-based Pioneer Group, said his firm's successful strategy in entering Poland hinged on making agreements with local banks to sell the funds.

Pioneer also decided to make as much information available as possible to investors as mutual funds were still a relatively unknown concept in that country. The company's funds in Poland have since grown to hold $1 billion in assets and have 500,000 shareholders. All of the staff at the local operation are Polish.

"We are a Polish institution,'' he said.

Heinz Hockmann, Executive Vice President of Frankfurt-based Commerzbank, said his company strategy in France was to buy a small local bank. The company kept local management by giving them part ownership in the venture.

"We maintained the French culture,'' he said.

Commerzbank's subsidiary has since grown to hold the largest amount of assets under management by a foreign firm in France. When entering the U.K. the firm decided that performance and name recognition was the key to success.

Commerzbank bought Jupiter Tyndall, a small mutual fund company that had outstanding performance but had not cashed in on its name, he said. The bank helped the UK firm, now known as Jupiter Asset Management, to build a sales team and begin an aggressive marketing campaign. Commerzebank also provided the long term stability which helped the U.K. company grow to hold 1 billion under management.

"Committment determines success,'' Mr. Hockmann said.

Julian Tregoning, director of Latin American operations for London-based Flemings Group, said his firm depended on a mix of local talent and home office values when setting up its first offices in Brazil, Argentina, Peru and Trinidad. In entering the market Flemings decided to form a joint venture with a South American based investor. Since Flemings' home office is based in London, the company tried to ensure that the local staff understood its processes, ethics and culture of operations.

"We bring the international skills so we can think regional and act globally,'' he said.

The panelists were speaking at the 8th Annual Globalisation of Mutual Funds conference held at the Southampton Princess. The conference began Monday and ended yesterday.

BUSINESS BUC