Does the world really need another technology fund?

It's a legitimate question. Since the category's average 1999 return was a stunning 135% last year and investors stuffed a record $33 billion into the category, fund companies have tripped over each other launching new tech-labeled funds. The latest is New York-based Seligman, which filed preliminary paperwork for a New Economies fund. Before you roll your eyes, this proposed fund may have more going for it than the average Johnny-come-lately.

Despite its somewhat vague name, the fund looks like it will be basically a technology fund. The broker-sold fund will primarily invest in small- and mid-cap stocks of Internet, new-media, broadband, consumer-electronics and wireless companies, according to the filing. There's no indication of when the fund might launch.

What sets this fund apart from the slew of other rookie tech funds is co-manager Paul Wick. Wick has run the firm's Communications and Information fund for just over ten years. In that time he's built a solid track record by taking a somewhat cautious approach, steering clear of the volatile sector's most pricey and speculative quadrants.

While that held him back in 1999, when his 74.5% return trailed 90% of his peers, it has helped him lately, according to Morningstar. The fund's 0.2% loss since Jan. 1 beats 85% of its peers. The fund's 31.5% annualized return over the last ten years beats most peers, as well as the S&P 500 by more than 12 percentage points.

Wick, who will continue to run the Communications and Information fund, will run the new fund with Storm Boswick, manager of the closed-end Seligman New Technologies. Boswick joined the firm four years ago.

The New Economies fund won't be the cheapest on the shelf. Class A and Class C shares will levy a maximum 4.75% and 1% front-end sales charge, or load, respectively. Class B, Class C, and Class D shares will charge a maximum 5%, 2%, and 1% back-end load.

The fund's annual management fee will be 1.25%, but other expenses aren't detailed in the filing.

Merrill Lynch Changes Junk Fund Name

On Monday Merrill Lynch Corporate High Yield will change it's name to U.S. High Yield Fund, according to a filing with the SEC.

The change makes sense because on May 31, the fund will lower its limit on foreign investments from 25% to 10%.

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