If you are contemplating firing a sub-advisor will you let shareholders know?

No. Our responsibility is first and foremost to do everything we can to increase the odds of meeting each fund’s long-term performance objectives. If we are contemplating removing a manager it is likely that it will play out in one of two ways. It could be that we have already decided to remove them, but have yet to tell them, pending a replacement. In this instance we would not want to make this information public because we don’t believe it is likely to result in an attentive and focused sub-advisor. Alternatively, we may be considering a change pending re-assessment of one or more factors. In that event we would not necessarily want to alert the sub-advisor to that fact since it could impact the way they respond to our concerns, nor would we want to put the sub-advisor through the potential embarrassment of a public announcement. In either instance we believe our shareholders’ interests are better served by deferring any discussion until a change is actually made.

The only exception to publicly announcing that a sub-advisor is under review is when there has been a key and public personnel change (e.g. when David Winters, a Litman Gregory Masters Funds Value sub-advisor, left Franklin Mutual Advisors).