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Closed-End Fund Replaces VALIC As Advisor

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NU Online News Service, Jan. 25, 2:18 p.m. – The new board of USLife Income Fund Inc. is replacing the officers and investment advisor and proposing to change the fund name and investment objective.

The Variable Annuity Life Insurance Company, Houston, an affiliate of American International Group Inc., has been the investment advisor for the closed-end fixed-income fund, which has $49 million in assets.

The new board has picked Boulder Investment Advisers L.L.C., Boulder, Colo., and Stewart West Indies Trading Company Ltd., Christ Church, Barbados, to be the new, interim investment advisors, “until such time as shareholders consider an ongoing investment advisory contract,” according to a report the new board filed with the U.S. Securities and Exchange Commission.

The new board has also announced plans to rename the fund the Boulder Growth & Income Fund; change the investment objective to “total return”; and change the investment restrictions to permit the fund to invest in real estate investment trusts and common stocks.

The new board will put the changes to a vote at a shareholder meeting in April, the board says.

VALIC agreed to step aside in the fall, after a family trust that owns 21% of the fund stock waged a successful fight to defeat a resolution to keep VALIC as the investment advisor, according to SEC filings.

Shareholders elected a new board, which is supported by the family trust, Jan. 23.

The new interim advisors, Boulder Investment and Stewart, are the advisor and sub-advisor to the Boulder Total Return Fund Inc., a closed-end fund traded on the New York Stock Exchange.

Fund Administrative Services L.L.C., a company that serves as co-administrator for the Boulder Total Return fund, will also administer the Boulder Growth & Income Fund, according to the new USLife fund board.