When some closed-end funds trade at a discount for long, they are required to hold shareholder votes about possibly switching to being open-ended. PowerShares
added an interesting twist to that concept with some new closed-end funds. In the Wall Street Journal
"Fund Track" column on Monday, Daisy Maxey reports
that the new PowerShares Preferred ACCE Fund
and two other new PowerShares closed-end offerings will automatically transform into ETFs if they trade at a discount for long enough.
However, Miami advisor Cecilia Gondor of Thomas J. Herzfeld Advisors told the WSJ that the new PowerShares offerings will also include an upfront sales charge of about 450 basis points.
Maxey also highlights new closed-end offerings from Nuveen
and Western Asset Management
Neil Anderson, Managing Editor
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