The directors of the Matrix Advisors Value Fund
are having second thoughts about their fund's adoptive parent. The board had proposed that Strong Capital
adopt the fund. However, the allegations that Strong allowed market timing trades by Canary Capital Partners caused the board to delay the scheduled October 14 vote on the matter until at least November 13. Shareholders must be allowed to vote on the matter no later than December 13.
The October vote was delayed before the latest allegations that Strong founder Richard Strong also conducted timing trades in some Strong funds. In a message on the fund's Web site
, the directors say that they are waiting for more clarity on the situation before making a final decision on the adoption.
"In the past several months, many of us at Matrix have spent a great deal of time learning more about the Strong organization. We have been impressed with their professionalism and integrity. We continue to hold that view," read the statement.
It added that the board "has adopted a cautious posture, watching developments to learn more about particular allegations, the response of Strong to them, and the impact on the Strong organization and its family of mutual funds."
New York City-based Matrix Asset Advisors had decided to send the fund to Strong in August. The advisory firm would have then stayed on as the subadvisor to the fund. The firm is headed by portfolio manager David Katz
and manages roughly $177 million in assets.
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