Laudus Funds will liquidate its four mutual funds subadvised by AXA Rosenberg Investment Management, according to a news release.
The four funds are part of the Charles Schwab family of mutual fund offerings.
The funds, all closed to new investors on April 30, are the $316 million Laudus Rosenberg International Discovery Fund, $284 million Laudus Rosenberg International Small Capitalization Fund, $283 million Laudus Rosenberg U.S. Discovery Fund and $82 million Laudus Rosenberg U.S. Large Capitalization Fund. Outstanding shares are expected to be redeemed on or shortly after July 30.
The move follows AXA Rosenberg’s mid-April disclosure that key AXA Rosenberg executives hadn’t followed company procedures requiring timely reporting of a glitch discovered in the quantitative firm’s computer programs in mid-2009.
“Laudus Funds will continue to work with AXA Rosenberg to understand the effect of its recently disclosed coding error and its impact, if any, on the Laudus Rosenberg Funds,” according to the release.
Laudus spokesman David Weiskopf wasn’t available for further comment.
In an e-mailed statement, an AXA Rosenberg spokesman declined to comment “on any specific client or consultant decision.” However, the statement went on to say that the “vast majority of our clients” remain with AXA Rosenberg, as the firm’s investment performance this year improves with the return of “more normalized” market conditions.
Vanguard Group, which also has AXA Rosenberg as a subadviser, is continuing to look into the details of the money manager’s handling of its coding error problem, said Vanguard spokeswoman Rebecca Katz. Vanguard has no specific timetable for when conclusions might be reached, she said.