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ARIVX - Proxy Vote

I just received information pertaining to a proxy vote for the fund. Can anyone here provide details pertaining to proposal numbers 2 and 3. Item 2 seems to involve a new investment advisory agreement. Item 3 states it is a 'modified Manager-of-Mananagers structure for the fund' Any idea as to what's going on here?

Comments

  • Dear BrianW There should be a Q&A section in your proxy material that explains the purpose of the vote.
    Regards,
    Ted
  • I'll double-check my understanding of the proxy with the Aston folks. Here's what I believe to be the case: a fund's board hires Aston to advise the fund. Aston advises the funds but doesn't manage them, instead they hire managers like River Road. Aston's role is to be a manager of managers. AMG currently owns a majority stake in Aston and they're about to become the sole owners.

    When the AMG ownership deal goes through, it will invalidate both the advisory contract and all the sub-advisory contracts. Expensive hassle ensues. The proxy asks shareholders to approve a contract under which subsequent ownership changes or reorganizations don't have that effect.

    From a shareholder perspective, neither fees nor management teams are affected by the proxy.

    For folks interested, here's the proxy statement on file with the SEC.

    But, as I said, I'll check.

    David
  • Thank you Ted, I missed the Q&A section. Thank you as well David. If I'm not mistaken, AMG owns Yacktman funds as well, so no issues there. Just wanted to make sure Eric Cinnamond wasn't going anywhere.
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