Morgan Asset Management of Memphis, Tenn. is asking shareholders of its $78 million Morgan Keegan Southern Capital Fund to broaden the universe of companies the fund can invest in and transform the fund into the Morgan Keegan Select Capital Growth Fund.
The fund adviser wants to allow the group's only equity fund to invest in companies doing business throughout the U.S. Currently, the fund can only invest in companies based in 15 southern states.
The new fund will have more investment flexibility and will be structured as a multi-class fund, according to a proxy statement filed August 29. The multi-class structure could lead to increased sales that would then lower the fund's expense ratio. If approved by shareholders at a meeting Oct. 18, the changes will take effect Nov. 1.
Morgan Asset Management is the investment management subsidiary of regional broker/dealer Morgan Keegan.
Morgan Keegan is the adviser to two fixed income funds - the Morgan Keegan Intermediate Bond Fund and the Morgan Keegan High Income Fund. The firm has three additional equity funds in registration - the Morgan Keegan Select Financial Fund, the Morgan Keegan Core Equity Fund and the Morgan Keegan Utility Fund.