Kellner Merger Fund to use 'merger arbitrage' as investment technique

By Toni Weeks

San Diego, March 30 - Advisors Series Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new fund, the Kellner Merger Fund.

The fund will launch with investor class and institutional class shares. Ticker symbols have not yet been set.

The fund will seek to achieve positive risk-adjusted absolute returns with low volatility by investing primarily in publicly announced mergers and acquisitions.

Under normal market conditions, the fund will invest at least 80% of its net assets in equity securities of U.S. and foreign companies that are involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations and other corporate reorganizations. This investment technique, sometimes called "merger arbitrage," is designed to profit from these types of corporate activities.

George A. Kellner and Christopher Pultz will be the portfolio managers.

Shareholder fees will consist of a 2% redemption fee for shares held 30 days or less. Management fees will run 1.25%. Including other fees and taking into account a fee waiver agreement with the adviser, net annual fund operating expenses are expected to be 2% for investor class and 1.75% for institutional class shares. The fee waiver agreement expires Aug. 28, 2013.

New York-based Kellner Management LP will serve as the fund's investment adviser.

© 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.