Aston Asset Management has fired Todd-Veredus Asset Management, the subadvisor to two of the firm's small-cap funds, Morningstar reports.
The $22.8 million Aston/Veredus Small Cap Growth (VERDX) will be merged into the Aston Small Cap Growth (ACWDX) fund, which is subadvised by Lee Munder Capital Group and managed by Andrew Morey. Until the transaction is approved and finalized, Aston/Veredus Small Cap Growth will change its name to Aston Small Cap and become a clone of Aston Small Cap Growth. The $6.2 million Aston/Veredus Select Growth (AVSGX) will be liquidated on Jan. 30, 2013.
According to Morningstar, the Veredus sub-advised funds have struggled with performance in recent years. Both funds lagged more than 90% of their respective category peers in the trailing five years through November.