A Chicago-based subadvisor may soon be fighting back against a mutual fund shop that wants to drop the subadvisor.

Jeff Kilburg KKM Financial Founder, Chief Executive Officer

Per recent filings with the SEC, on August 24 Chicago-based KKM Financial told Equity Armor Investments (also in Chicago) that Equity Armor would no longer subadvise the $19.5-million AUM KKM U.S. Equity ARMOR Fund as of October 23. KKM founder and CEO Jeff Kilburg will be the sole PM for the fund.

A second Equity Armor-subadvised KKM fund, the $4.4-million AUM KKM ARMOR Fund, is slated to shut down this month.

MFWire could not immediately reach Kilburg for comment on the move.

A source with Equity Armor tells MFWire that there are "potential legal issues" with KKM dropping Equity Armor as the KKM U.S. Equity ARMOR Fund's subadvisor.

"We don't believe that he [Kilburn] has the right to do that," the source says.

The fund is a series of Northern Lights Fund Trust II. Kilburn and two Equity Armor executives, managing members Luke Rahbari and Brian Stutland, have PMed the fund since it first launched in June 2014. 

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