's Board of Trustees has decided not to proceed with the proposed merger of Stein Roe Capital Opportunities Fund and the Young Investor clone -- Stein Roe Growth Investor Fund.
"The proposed merger was designed to benefit shareholders of both Capital Opportunities and Growth Investor funds," said Thomas W. Butch
, president of Stein Roe Mutual Funds. "We subsequently determined that the merger would have resulted in Capital Opportunities Fund being the surviving entity for financial statement purposes. This treatment would have lessened the benefits of the
merger for shareholders of both funds. As a result, we have decided not to proceed with the transaction."
Capital Opportunities Fund will continue to be managed by Erik Gustafson
and David Brady
, who have managed the Fund since May 6, 1999. Together, Gustafson and Brady also manage the Stein Roe Young Investor Fund.
In addition, Gustafson manages the four-star rated Stein Roe Growth Stock Fund and Brady manages the Stein Roe Large Company Focus Fund, ranked by the June issue of Smart Money magazine as one of the "seven hottest" new funds launched in 1998.
The manager of the Growth Investor Fund, Gloria Santella
, resigned last month.
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