United Asset Management of Boston filed a preliminary proxy statement with the SEC Nov. 9 seeking to liquidate the TS&W International Octagon Portfolio, which is managed by its affiliate, Thompson, Siegel & Walmsley of Richmond, Va.
The company wants to liquidate the fund because of its small asset size and a limited potential for future growth, the proxy said. The fund had $11.3 million in assets under management as of Oct. 31, a sharp drop in assets from May 31, when the fund had $58.2 million in assets. In the past months, several large redemptions have caused assets to drop sharply, according to the proxy.
In an effort to boost sales, Thompson, Siegel & Walmsley have assumed the fund's expenses and waived some fees, but without subsidizing expenses, the fund would not be profitable for shareholders, the proxy said. The fund's expense ratio last year was 1.61 percent and is expected to increase this year as a result of a decrease in assets, according to the proxy. Should the fund continue to operate, investors would probably wind up shouldering the increase because Thompson, Siegel & Walmsley will most likely stop subsidizing the fund, the proxy said.
The TS&W International Equity Portfolio is an international value fund. Proxy statements will be mailed to shareholders late this month and a shareholder meeting is scheduled for Jan. 10, according to the proxy.