Cornerstone Capital Management, which currently serves as investment adviser to the Keystone Large Cap Growth Fund, has entered into an agreement to sell the fund to New York Life Investment Management, according to a Securities and Exchange Commission filing.
The deal is expected to close in January 2013.
In connection with the deal, the Keystone fund will fold into the MainStay Cornerstone Growth Fund, which will be a newly-created series of MainStay Funds Trust. After the reorganization, NYLIM will serve as investment adviser for the New Fund and Cornerstone LLC will serve as sub-adviser for the New Fund. A notice of a special meeting of shareholders and a proxy statement seeking shareholder approval will be sent to fund shareholders on Sept. 27.
The $354 million fund was launched in August 2006 and sports an expense ratio of 110 basis points, accordiing to Morningstar.
A spokesperson for NYLIM was not available to comment on the deal and an official at Cornerstone was also not immediately available for comment.