Duff & Phelps Closed-End Funds Announce Election to Opt Into Maryland Control Share Acquisition Act
The MCSAA protects the interests of all shareholders of a Maryland corporation by denying voting rights to "control shares" acquired in a "control share acquisition" unless the other shareholders of the corporation reinstate those voting rights by a vote of two-thirds of the shares held by shareholders other than the acquiring person.
Karpus Investment Management (KIM) owns 39.1% of DUC (DUFF & PHELPS UTILITY & CORPORATE BOND TRUST)
as of an SC 13D on 5/1/2020.
A lot of REIT investors assign a big a valuation penalty for REITs that do NOT opt out of Marylands rules.
REITs are always having to raise capital in order to grow, so they have to be sensitive to what investors/bankers suggest.
CEFs .... not so much.
These rinky dink shops are the ones that always fight tooth & claw to keep their fee bearing AUM; they have no gig other wise.
I suspect the reason the SEC has withdrawn the Boulder letter - the letter concerning the issue of CEFs adopting MCSAA - could be because Bulldog asked the SEC for clarification of that and various other takeover defenses. If I'm right, asking for clarification has backfired on Bulldog and other CEF activists.
Yes, the Boulder SEC letter was withdrawn. Link and an article below.
PGIM High Yield Bond Fund, Inc. and PGIM Global High Yield Fund, Inc. announce election to opt in to Maryland Control Share Acquisition Act.
PGIM High Yield Bond Fund, Inc. (NYSE: ISD) and PGIM Global High Yield Fund, Inc. (NYSE: GHY)
SABA owns 5.2% GHY
SABA owns 7.2% ISD