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Hmmm...did pigs start flying? This is really quite surprising, but I'm not holding my breath. It is only money that talks. Like institutional shares costing lower ER. You could say in a way performance based fees - Bridgeway takes it to the extreme - is a kind of bonus for those who are loyally holding on.
Also if I understand CEF have fixed shares. So it is not as if other CEFs are under pressure to emulate THIS CEF gathering more assets. They trade like stocks right? Each seller needs to have a buyer. Now if we are saying selling depresses CEF price and THAT is what the CEF is trying to guard against, then that would be a little extreme.
Charity is not in our DNA. Yes, we become billionaires some guilt maybe trickles in. I doubt the folks who run CEF are in charitable mood. Finally, fickle as investors are, I doubt they will stick to an underperforming CEF anymore than they stick with a stock. What is most difficult to comprehend is a CEF doing this. ETF, mutual fund it would be easier to understand that thought process behind it. I mean Gates/Microsoft didn't specifically reward their long term share holders like this right? CEF is like a stock, right?
Comments
Also if I understand CEF have fixed shares. So it is not as if other CEFs are under pressure to emulate THIS CEF gathering more assets. They trade like stocks right? Each seller needs to have a buyer. Now if we are saying selling depresses CEF price and THAT is what the CEF is trying to guard against, then that would be a little extreme.
Charity is not in our DNA. Yes, we become billionaires some guilt maybe trickles in. I doubt the folks who run CEF are in charitable mood. Finally, fickle as investors are, I doubt they will stick to an underperforming CEF anymore than they stick with a stock. What is most difficult to comprehend is a CEF doing this. ETF, mutual fund it would be easier to understand that thought process behind it. I mean Gates/Microsoft didn't specifically reward their long term share holders like this right? CEF is like a stock, right?
Regards,
Ted
http://www.mutualfundobserver.com/discussions-3/#/discussion/7841/will-mutual-funds-start-paying-for-loyalty-