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Rating:FBR Prospectus Changes Could Irk Shareholders Not Rated 2.2 Email Routing List Email & Route  Print Print
Monday, September 10, 2007

FBR Prospectus Changes Could Irk Shareholders

by: Erin Kello

FBR's change to the prospectus of the FBR Small cap fund came without it seeking shareholder approval. That faux pas is translating into shareholder discontent, fund insiders told Barron's. Barron's reports that FBR's counsel found no need to seek shareholder approval to junk the provision that the fund hold at least 80 percent of the fund's assets be in small caps. Both Adam Bold, of the Mutual Fund Store, and Harold Evensky, an investment advisor, say that the move may step on shareholders toes, but if the good returns continue, they may not mind the pain. 

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