From the Editor...

The closed-end funds market suffered a blow last week when the U.S. Court of Appeals for the Second Circuit affirmed a lower court decision that a bylaw amendment adopted by five Nuveen Investments funds violated the Investment Company Act of 1940. The amendment  "illegally strips some of Nuveen's shares of voting rights," the court's opinion stated in Saba Capital CEF Opportunities 1, Ltd. v. Nuveen Floating Rate Income Fund, which dates back to early 2021.

Nuveen said the Nov. 30 ruling will "harm the interests of long-term shareholders," while Eric Pan from Investment Company Institute called on Congress to protect investors by passing legislation such as the Increasing Investor Opportunities Act. Saba Founder and CIO Boaz Weinstein, on the other hand, lauded the court's decision and called on the Nuveen Funds independent directors to resign. 

There has been no shortage of shareholder activism in the closed-end funds space in recent years, so this is likely not the last word on the subject. 

In other news, the John Hancock Funds board is still immersed in succession planning and recruiting as another two long-serving independent directors get ready to retire at the end of next year. Chairman Hassell McClellan spoke with FBV about the board's approach to dealing with generational shift and board composition. 

We've also recently taken a look at recent changes in the Invesco Funds boardroom, which also has experienced a bit of turnover lately, though for slightly different reasons. 

Catch up on the SEC's enforcement action activity in the past year and the challenges with which fund boards anticipate dealing through the end of this year and into 2024. 

Reach out with questions, story ideas, or just to chat—we love to hear from you!

For now,

Hillary Jackson, founding editor