A Nuveen LLC bylaw change aiming to restrict the influence of larger investors as they acquire more shares in certain investment funds is invalid because it illegally strips share-voting rights, the Second Circuit ruled Thursday.
The affirmance of a lower-court decision opens the door for investment manager Saba Capital Management LP and a related entity to try to implement their “activist” business strategy through their stake in five Nuveen closed-end funds.
Closed-end funds typically are less liquid, provide steadier dividends, and trade farther above or below their net asset value compared with open-end funds, according to the appeals court. Saba’s ...
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