(February 29 – 17:00 ET) – SVC O’Donnell Funds Management Inc. is terminating its agreement with Garzarelli Capital Inc. for investment sub-advisory services. Garzarelli Capital Inc. is currently sub-advisor to the O’Donnell American Sector Growth Fund.

SVC O’Donnell says they now “believe that it is in the best interest of the unitholders to bring the direct management of the Fund in-house. The investment performance of the Fund has been disappointing”, says Mark S. Bonham, Chairman and CEO of Strategic Value Corporation. “As of January 31, 2000, the one and three year rates of return for the Fund were less than satisfactory.”

SVC O’Donnell is also committed to lowering the Fund’s management fee by 20% and the increased accessibility to the portfolio management team. “The investment management expertise, which we have recently added to our portfolio management team, has provided us with an excellent opportunity to manage the O’Donnell American Sector Growth Fund in-house and to pass significant cost savings along to our unitholders,” says Bonham.

Steven Wippersteg, who joined SVC O’Donnell in October 1999, and has extensive U.S. equities experience will manage the fund. “We look to Steven and the portfolio management team to provide the Fund’s unitholders with superior investment performance,” says Bonham.
-IE Staff