A Chicago-based subadvisor may soon be fighting back against a mutual fund shop that wants to drop the subadvisor.
| Jeff Kilburg|
Founder, Chief Executive Officer
Per recent filings
with the SEC, on August 24 Chicago-based KKM Financial
told Equity Armor Investments
(also in Chicago) that Equity Armor would no longer subadvise the $19.5-million AUM KKM U.S. Equity ARMOR Fund
as of October 23. KKM founder and CEO Jeff Kilburg
will be the sole PM for the fund.
A second Equity Armor-subadvised KKM fund, the $4.4-million AUM KKM ARMOR Fund
, is slated to shut down this month.
could not immediately reach Kilburg for comment on the move.
A source with Equity Armor tells MFWire
that there are "potential legal issues" with KKM dropping Equity Armor as the KKM U.S. Equity ARMOR Fund's subadvisor.
"We don't believe that he [Kilburn] has the right to do that," the source says.
The fund is a series of Northern Lights Fund Trust II
. Kilburn and two Equity Armor executives, managing members Luke Rahbari
and Brian Stutland
, have PMed the fund since it first launched in June 2014.
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