Strong Capital Management of Menomonee Falls, Wis., adviser to the Strong Family of Funds, in an effort to cut costs, will ask its shareholders in July to approve a new management agreement that will add management fee breakpoints on all but 10 funds and for the first time, impose administrative fees, the company announced on Wednesday.

It will also ask to close or consolidate small, uneconomical funds into larger Strong Funds, according to the company. It recently closed one fund and two variable annuity funds and eliminated two classes of shares on five of its six municipal bond funds.

Strong, which manages 52 funds and $43 billion in assets, also plans to raise its per account transfer agency fees and remove the two percent expense cap now imposed on most of its funds, according to the announcement.

By adding management fee breakpoints at which the advisory fee decreases as fund assets increase, Strong expects management fees to decrease, according to the announcement. But it plans, for the first time, to add an administrative fee, separate from the management fee, of five basis points on stock funds, three basis points on bond funds, and two basis points on money market funds, the company said.

“To remain competitive in the marketplace, Strong can no longer provide no-cost services for the funds,” the company said.

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