Covington Group of Funds has announced a proposal in which Covington Strategic Capital Fund Inc. will acquire the assets of Financial Industry Opportunities Fund Inc.

Covington Group of Funds anticipates that the acquisition of substantially all the assets of FIOF will see the addition of over $5.1 million in assets to the Covington fund; which currently has net assets of approximately $8.3 million. Both FIOF and CSCF, managed by Covington Capital Corp., share a number of common investments; making the proposed acquisition a natural merger of two like entities.

Under the proposed merger, CSCF will purchase the net assets of FIOF in exchange for Class A shares of the fund. The acquisition is subject to regulatory approvals, the approval of the board of directors of each of the funds, negotiating final agreements, and approval of both funds’ shareholders.

Further details with respect to terms, conditions and benefits of the acquisition will be outlined in the materials that will be provided or made available to shareholders in advance of the meeting of the funds that will be held to approve the acquisition.