Closed-End Funds

Di Costa Partners understands how activist hedge funds and institutions take advantage of the structure of closed-end funds to make more money for themselves often at the expense of long term shareholders. Our team has a long track record of winning proxy battles, and engaging activist holders to preempt those situations before they become battles.

Capabilities

Fund governance advisory including mandated annual meetings

Shareholder constituency research including UITs, institutional investors, retail holders and activist investors

Proactive monitoring of shareholder base and activist positions

Scenario-based projections and analysis of proxy voting incorporating activist holdings

Enhanced retail program to effectively communicate to holders on a regular basis before a proxy fight arises

Proactive daily monitoring of institutional buying/selling with a focus on activists

Outreach and engagement with proxy advisors - Institutional Shareholder Services (ISS) and Glass Lewis

Proprietary “Financial Advisor Program” to engage retail shareholders

Strong relationships with leading law firms

Full-service proxy solicitation

Drafting of “fight” letters and guidance on retail and institutional shareholder messaging

Tabulation of proxy voting and certification of results

Presentation of analytics and results to senior management and fund boards

Closed-end funds must conduct annual shareholder meetings similar to corporations. A key difference for these funds is the activist shareholders who seek to leverage the fund’s governance rules to arbitrage the difference between the NAV (Net Asset Value) of the fund’s assets and the market trading price.

Activist shareholder proposals have increased sharply over the last several years. These hedge funds and institutional activists are not normally acting in the best interest of all shareholders when they seek to receive a rights offering or convert a closed-end fund with a healthy dividend into an open-end mutual fund.

With Di Costa Partners and Morrow Sodali’s roots in shareholder activist contests, Di Costa Partners can provide balanced and effective guidance to managers and fund boards that find themselves under attack by an activist. Understanding the composition of the shareholder base informs Di Costa Partners’ targeted plan for each specific fund. In addition, Di Costa Partners has developed a monitoring program to proactively track closed-end funds and understand when and why activists may choose a particular fund as the next target.

* The “Financial Advisor (FA) Program” has been developed by Di Costa Partners to target and engage the financial advisors whose clients are the shareholders in the funds impacted by a proxy vote.

Capabilities

Fund governance advisory including mandated annual meetings

Shareholder constituency research including UITs, institutional investors, retail holders and activist investors

Proactive monitoring of shareholder base and activist positions

Scenario-based projections and analysis of proxy voting incorporating activist holdings

Enhanced retail program to effectively communicate to holders on a regular basis before a proxy fight arises

Proactive daily monitoring of institutional buying/selling with a focus on activists

Outreach and engagement with proxy advisors - Institutional Shareholder Services (ISS) and Glass Lewis

Proprietary “Financial Advisor Program” to engage retail shareholders

Strong relationships with leading law firms

Full-service proxy solicitation

Drafting of “fight” letters and guidance on retail and institutional shareholder messaging

Tabulation of proxy voting and certification of results

Presentation of analytics and results to senior management and fund boards

Closed-End Funds

Di Costa Partners understands how activist hedge funds and institutions take advantage of the structure of closed-end funds to make more money for themselves often at the expense of long term shareholders.
Our team has a long track record of winning proxy battles, and engaging activist holders to preempt those situations before they become battles.

Closed-end funds must conduct annual shareholder meetings similar to corporations. A key difference for these funds is the activist shareholders who seek to leverage the fund’s governance rules to arbitrage the difference between the NAV (Net Asset Value) of the fund’s assets and the market trading price.

Activist shareholder proposals have increased sharply over the last several years. These hedge funds and institutional activists are not normally acting in the best interest of all shareholders when they seek to receive a rights offering or convert a closed-end fund with a healthy dividend into an open-end mutual fund.

With Di Costa Partners and Morrow Sodali’s roots in shareholder activist contests, Di Costa Partners can provide balanced and effective guidance to managers and fund boards that find themselves under attack by an activist. Understanding the composition of the shareholder base informs Di Costa Partners’ targeted plan for each specific fund. In addition, Di Costa Partners has developed a monitoring program to proactively track closed-end funds and understand when and why activists may choose a particular fund as the next target.

* The “Financial Advisor (FA) Program” has been developed by Di Costa Partners to target and engage the financial advisors whose clients are the shareholders in the funds impacted by a proxy vote.