Top of the Agenda - Legal

CEFs v. activists: Roundup of latest developments

Activist investor activity in the closed-end funds space has been on the rise in recent years, with a significant uptick in the past several months. In an attempt to keep readers up to date on what has become a busy sector of the market, FBV will run an occasional roundup ... >> CONTINUE READING <<<

IM lawyers jump from Goodwin to Kirkland

Law firm Kirkland & Ellis has boosted its presence in the registered funds space with the hiring this week of a team of five partner-level investment management lawyers from Goodwin Proctor. The team will help expand Kirkland's ability to serve current fund clients and new clients entering the registered funds ... >> CONTINUE READING <<<

Saba suit targets ASA closed-end fund for 'poison pill' strategy

By Hillary Jackson

Saba Capital Management has filed a lawsuit against closed-end fund ASA Gold and Precious Metals Ltd. and its board of directors, a move the activist investor maintains is aimed at invalidating the fund's "discriminatory and unlawful shareholder rights plan." Saba has used the courts over the past several years to ... >> CONTINUE READING <<<

BlackRock CEFs fail to get stay of ruling in Saba case

By Hillary Jackson

Two BlackRock closed-end funds failed to obtain a stay pending appeal of a Dec. 5 ruling that they violated the Investment Company Act of 1940. Judge Jed Rakoff of the U.S. District Court for the Southern District of New York denied the funds' motion because they failed to show a ... >> CONTINUE READING <<<

Court hands Saba another control share win

By Hillary Jackson

The courts have handed Saba Capital Management another victory in its ongoing battle against the adoption by closed-end funds of control share provisions in their bylaws. On Tuesday, the U.S. District Court for the Southern District of New York granted summary judgment to Saba in a case it filed in ... >> CONTINUE READING <<<

Appeals court: Nuveen amendment 'illegally strips' shares of voting rights

By Hillary Jackson

An appeals court has affirmed a ruling that a bylaw amendment adopted by five Nuveen Investments closed-end funds violated the Investment Company Act of 1940. In suing the funds and their boards of directors in February 2021, Saba Capital Management maintained that all shares should be treated equally under the ... >> CONTINUE READING <<<