First Opportunity Fund, Inc. (FF) Friday said its board of directors considered and approved a proposal to restructure the Fund's advisory contract. Under the proposed restructuring, two registered investment advisers affiliated with the Fund's largest stockholders would become co-advisers to the Fund.
Wellington Management Company, LLP, the current adviser to the Fund, would step into a temporary sub-advisory role with respect to a discrete portion of the Fund's investment portfolio. The new advisers intend to make a substantial investment, constituting approximately 50% of the Fund's assets, in certain private investment funds currently managed by an affiliate of Wellington Management.
Under the proposed restructuring, the new advisers would be paid an advisory fee at an annual rate equal to 1.25% of the average monthly total net assets of the Fund, but would reduce the advisory fee by the amount of management fees paid by the Fund to any Wellington Management-affiliated private investment fund or to Wellington Management pursuant to the sub-advisory agreement.
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