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Managers Special Equity Replaces One of Five Subad

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Sept. 25, 2002 — Managers Funds said the trustees of Managers Funds Special Equity (MGSEX) named Donald Smith & Co. as a subadviser of the fund, replacing Goldman Sachs Asset Management.

The portfolio will continue to have five subadvisers, each independently managing approximately 20% of the fund.

The fund’s other subadvisers include growth managers Pilgrim Baxter & Associates Ltd. and Kern Capital Management LLC, and value managers Westport Asset Management, Inc. and Skyline Asset Management, L.P. Donald Smith is the fund’s third value-oriented manager.

Goldman had been a subadvisor since 1985.

Donald G. Smith, president of the Paramus, N.J.-based firm he founded in 1983, will employ a bottom-up strategy predicated on the thesis that price/book value is the best indicator of future stock performance, Managers Funds said.

The fund, a diversified small-capitalization equity portfolio, declined 21.5% through the end of August, while the average small-cap blend fund dropped 18.4%. The fund currently has $1.7 billion in assets.

Managers Special Equity Fund is ranked 3 Stars by Standard & Poor’s.