Closed-End Fund Activism
Protect investors from activist raider attacks
Rising shareholder activism against closed-end funds (CEFs) is threatening an investment product that has helped millions of Americans achieve their long-term financial goals over the last 80 years.
Given their orientation toward income-producing assets, CEFs are favored by retirees and other investors in need of consistent cash flow.
However, deep-pocketed activist investors can take advantage of discounted prices to amass CEF shares. They frequently use their voting power to force funds to liquidate all or a portion of their assets, often at the expense of investors.
This disruptive behavior threatens to reshape the structure of the fund, leaving long-term shareholders with a substantially altered product, increased fees, or even no product at all.
CEFs’ long-term shareholders may find themselves invested in a radically different product with an entirely new strategy, the same product but with fewer assets and correspondingly higher fees and expenses, or no product at all. For retirees relying on CEFs for income, managing unexpected tax liabilities can significantly disrupt budgetary planning and financial well-being.
Now is the time to act to secure the future of closed-end funds and uphold the principles of investor choice and financial security for generations to come.
Take Action to Protect Investors
The New York Stock Exchange’s proposed changes to closed-end fund annual meeting requirements can help protect investors like you from their attacks.
Take action today to protect investors from these activist raider attacks!
