The Cornerstone fund group is liquidating its five funds because of a disagreement among accounting firms as to how to price certain defaulted municipal bonds, according to published reports.
The New York-based group had about $27 million in five bond and money-market funds before selling all of its holdings except those in the defaulted bonds, the reports say. Neither Deloitte & Touche nor Grant Thornton would certify the funds' 1999 financial statements because of those pricing issues. McGladrey & Pullen, which certified the firm's financials in 1998, would not reopen those financials and said it stands by its original determination, the reports say. Cornerstone sought a new accountant after McGladrey & Pullen sold its mutual fund accounting operation to PricewaterhouseCoopers.