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Understanding Ownership Data Can Help Defend Against Closed-End Fund Activism

Thursday, August 3, 2023

Activists focused on Closed-end Funds (CEF) have significantly increased their efforts and advanced their techniques. As these investors target CEFs, understanding your ownership data can help you devise appropriate outreach and defense strategies. 

CEFs remain an important asset class, but one that is currently experiencing a great deal of change that threatens the opportunities for a variety of different investors to take advantage of their benefits.  

CEF Article Mockup12

The top three main actions that activist investors currently are pursuing are:  

  1. Forcing a tender offer to buy shares at or as close to NAV
  2. Force a conversion of the fund into an open-end fund at NAV
  3. Forcing the fund to liquidate at NAV

Read our recent CEF overview article for more insights and information on how the Fund Solutions team can help.   

Download the article “Understanding Ownership Data Can Help Defend Against Closed-End Fund Activism” 

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