Bridgeway reorganizes Aggressive Investors 2, Micro-Cap Limited funds

By Toni Weeks

San Diego, Feb. 13 - The board of directors of Bridgeway Funds, Inc. unanimously approved at a Feb. 10 meeting a plan of reorganization to convert shares of the company's Aggressive Investors 2 Fund into shares of the Aggressive Investors 1 Fund, according to a 497 filing with the Securities and Exchange Commission.

At the same meeting, the board also unanimously approved a plan of organization to convert shares of the company's Micro-Cap Limited Fund into shares of the Ultra-Small Company Fund.

The board said the reorganizations are in the best interests of shareholders.

Both reorganizations will require the approval of the shareholders of the Aggressive Investors 2 Fund and the Micro-Cap Limited Fund. If approved, the conversions are expected to take place during the second quarter of 2012.

The filing also said that the board approved modifications to the management agreement between Bridgeway Funds and Bridgeway Capital Management, Inc., the funds' Houston-based investment adviser.

Effective Feb. 13, the expense cap for the Aggressive Investors 1 Fund has been reduced to 1.75%, down from 1.8%, and the base advisory fee schedule now includes an additional breakpoint for calculating advisory fees. The fees are now 0.9% of the fund's average daily net assets for investments of up to $250 million, 0.875% of the net assets for the next $250 million and 0.85% of the net assets for investments over $1 billion.

This fund has management fees comprised of a base fee and a performance fee adjustment that depends on performance relative to a market index over the last five years. It is applied to average net assets over the next performance period.

Also effective Feb. 13, the expense cap for the Ultra-Small Company Fund has been reduced to 1.85%, reduced from 2%.

The adviser is contractually obligated to waive fees and/or pay fund expenses, if necessary, to ensure that net expenses do not exceed the above expense caps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.