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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?
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.
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.
Comments
Regards,
Ted
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