Closed-End Fund Activism: How to Level the Playing Field

The Review of Securities & Commodities Regulation

Kenneth E. Burdon

Partner Kenneth Burdon describes how the dramatic increase in the scope, tone, tactics, goals and impacts of closed-end fund shareholder activism is “strangling” a key investment product for middle-class retail investors, including retirees. Pointing out that the loopholes used by activist managers were never intended by Congress, Mr. Burdon highlights areas where either Congress or the SEC can act to protect retail closed-end fund investors, such as through:

  • The Increasing Investor Opportunities Act.
  • Public guidance.
  • Rulemaking.