Matrix Asset Advisors has cut a deal with Strong Financial that it hopes will build assets in its Value Fund. Essentially Strong will be adopting the fund. It will also assign the New York City-headquartered Matrix a second subadvisory mandate worth an estimated $126 million. These moves come as a published report claims Strong is planning to merge two other fund from its roster.

Under the proposed plan, the Matrix Advisors Value Fund will be reorganized into a new fund (the Strong Large Cap Value Fund). Matrix Asset Advisors will continue to manage the fund's portfolio as a subadvisor while Strong will take over marketing, distribution and other services. This type of fund "adoption" has become popular with distributors seeking to build out their product lineups and has been practiced by John Hancock Funds, Turner Investments and others.

"This enables us to keep our focus on successfully managing money for our investors," said David A. Katz, portfolio manager and founder of Matrix. "At the same time, we are excited about the tremendous client service that Strong will provide to existing and future investors." The fund currently levies a 100 basis point investment management fee and carries an expense ratio of 99 basis points, according to Morningstar.

Dana J. Russart, vice president of Strong Investments, explained that the deal would enable investors to better construct portfolios that meet their long-term goals.

Matrix will also takeover as subadvisor of the roughly $200 million Strong Advisor U.S. Value Fund, pending shareholder approval. That fund is now managed internally at Strong by Robert J. Costomiris. He will continue managing the Strong Mid Cap Disciplined, Small Company Value, and Strategic Value Funds.

Meanwhile, there are also reports that Strong is planning to merge to of its funds into others on its roster. The $79 million Advisor Mid Cap Growth Fund will reportedly be merged into the $1.4 billion Growth Fund and the $4 million Large Cap Core Fund into the $645 million Growth & Income Fund.  

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