The tiny Philadelphia Fund (PHILX), which traces its roots to 1923 and is one of the oldest mutual funds, will be merged out of existence next month.
The tiny Philadelphia Fund (PHILX), which traces its roots to 1923 and is one of the oldest mutual funds, will be merged out of existence next month.
Pending shareholder approval Nov. 6, the $53.2 million fund, which is advised by Baxter Financial Corp., will be merged into the $135.7 million WHG Large Cap Value Fund (WHGLX), which is advised by Westwood Management Corp.
The move was triggered by Baxter’s decision to get out of the asset management business and the subsequent decision by the fund board that it wasn’t economical to continue operating the fund with so few assets, Donald Baxter, president of Baxter Financial, wrote in a letter to shareholders.
“The Philadelphia Fund currently possesses assets that are below critical mass and are not generating economies of scale,” he wrote. “After reviewing BFC’s decision, the board determined that the best course of action was to seek to reorganize the Philadelphia Fund into another fund with similar investment objectives and policies.”