Van Wagoner Funds recently received more bad news stemming from the recent publicity over whether it had fairly valued private placements in its mutual funds. Yesterday, AIG SunAmerica filed paperwork with the SEC informing fund shareholders that it was terminating Van Wagoner as subadvisor to its $51 million Focused Technology Portfolio.

The San Francisco-based fund firm is one of two subadvisors for the fund. The second is Dresdner RCM Global Funds. The filing stated that AIG SunAmerica would assume management for Van Wagoner's portion of the portfolio until a new subadvisor is hired.

AIG SunAmerica officials were not available for immediate comment on why the decision to terminate Van Wagoner was made.

Besides the potential SEC investigation into how Van Wagoner has valued private placements, the fund has also suffered from dismal performance in line with that of its peer group. The fund lost 56 percent in 2001 and 44 percent in 2002. That performance is not out of line with other technology funds.  

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