A question from Yahoo! Answers:
I recently invested in closed end mutual Funds and the investors decided to sell it.?
What happens to my investments? Do I need to sell as soon as possible?
The CEF is USA
First of all, let’s get the terminology straight. You invested in a closed-end fund managed by Banc of America Investment Advisors. Banc of America Investment Advisors (BAIA) entered into an agreement to sell its fund management business to ALPS Advisers.
At some point later this year, the shareholders (including you) will vote on the change of investment advisor. Assuming the change of advisor is approved, the funds will have a new advisor. Whether it is good or bad news for the fund it hard to say; you need to look at ALPS performance and fees and compare them with those of BAIA.
It’s also possible that your fund will be merged with a similar fund already managed by ALPS, which in and of itself is neither good nor bad.