National City Banks' Armada Funds is considering bolstering its product mix now that it has added to its distribution strength. The fund unit is considering moves on all fronts, including adding funds, variable annuity accounts and a new 401(k) product.

The firm currently offers some 30 funds with $18.6 billion in assets. The bulk of those assets, roughly $11.5 billion, are invested in money market funds. Its 10 equity funds hold $4.3 billion in assets.

"We would like to add at least a couple new funds," explained Kathleen Barr, managing director. The new products would leverage existing investment management resources at the firm and be available through its roughly 150 distribution partners with which the bank has selling agreements.

The most likely additions to the family would be a small cap value funds. Armada's current offering in the objective (Armada Small Cap Value) has $850 million in assets and may run into capacity problems. A new product would allow that objective to grow without harming the current fund.

The list of potential new offerings also includes a high yield fund. Armada now manages high yield bonds in a separate account product and can leverage those skills in a registered fund.

Another addition Barr is eyeing is a new low-fee money market fund for the high net worth and institutional market. That fund would likely include a minimum $10 million initial investment.

Barr said that the firm probably will add another variable annuity account, but did not provide further details of what that may be. 

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