Much as it had hoped to set a new course for the troubled Fundamental Funds, Cornerstone Equity Advisors will be paying the price for the funds' past problems.
Substantial debts that Fundamental has accumulated because of setbacks over the last few years persist and Cornerstone has agreed to cover the costs. The existence of the persisting debts and the fact the Cornerstone will be paying them was disclosed in a proxy statement now being sent to the 5,000 shareholders of Fundamentals' five funds. The proxy is to gain shareholder approval for the appointment of Cornerstone as the funds' permanent adviser. Cornerstone has been the funds' interim adviser since September 30.