Conseco Capital Management of Carmel, Ind. is seeking to outsource the management of its funds to sub-advisers rather than replace portfolio managers it lost to other companies last year, according to a preliminary proxy statement filed with the Securities and Exchange Commission.

In October, the firm lost its chief investment officer and three portfolio managers to Strong Capital Management of Menomonee Falls, Wis. That followed the en masse departure of the company's bond department in July.

Rather than replace the managers that left, Conseco will give the management of the portfolios to outside firms, according to the proxy.

"The Board has approved proposals by CCM to restructure the manner in which the Funds' assets are managed," the proxy says. "Under the new contracts, Conseco Capital Management may oversee the management of the Funds' portfolios by one or more investment

sub-advisers, rather than managing the funds themselves."

If approved, the measure would also extend the sub-advisory contracts of Chicago Equity Partners and Oak Associates and would allow Conseco to hire and fire sub-advisers for all of its funds without shareholder approval, according to the proxy.

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