Frank Russell Canada hired Ark Asset Management to replace Strong Capital to run a growth portfolio as part of the multimanager Russell U.S. Equity Fund. Strong was terminated primarily because of personnel changes on its growth-product management team, said Tania Hrebicek, spokeswoman. Russell officials were also concerned about market-timing allegations against founder and CEO Richard Strong, Ms. Hrebicek said. Strong managed an all-cap growth portfolio worth about 9% of the C$476 million (US$362 million) Russell U.S. Equity Fund; Ark will run a core growth mandate worth about 10% of the fund, Ms. Hrebicek said.
Strong officials declined to comment.