When Global Real Estate Investments Fund was organized in 2009, the closed-end interval fund structure was chosen as most appropriate for the Fund’s investment objective and intended method of operation. The Fund's Adviser believed that the closed-end interval fund structure would help minimize the potential negative impact of unexpected net redemptions due to short-term trading resulting from day to day volatility in the market. Nonetheless, the Fund’s initial prospectus contemplated that the Fund’s Board of Trustees would eventually consider the conversion of the Fund into an open-end investment company on or about December 31, 2016.
In light of changes in market conditions and investor sentiment, in particular the desire of many investors to have immediate access to their invested capital, the Adviser believes that by converting to an open-end fund structure the Fund could experience significant growth without impairing the Adviser’s ability to effectively manage the Fund’s portfolio with an eye toward long-term appreciation. The preliminary proxy material for the special meeting of shareholders to be held March 24 was filed on Form PRE 14A dated 2/14/11 (SEC file no. 811-22322).
Proxy Proposal #4 seeks shareholder approval to a) change the subclassification of the Fund from that of a closed-end investment company to that of an open-end investment company, (b) eliminate the Fund’s fundamental policy regarding quarterly repurchases, and (c) eliminate provisions in the Fund’s Declaration which discuss potential conversion of the Fund to an open-end investment company. Global Real Estate filed a Form N-1A on 2/23/11 to register Class A shares under the 1933 Act. The proposed conversion will not be implemented until after the Registration allowing the continuous offering of shares becomes effective.
No comments:
Post a Comment