The closed-end AIM Floating Rate Fund is asking shareholders to approve changes that would convert the fund to a so-called interval fund, a move that will make it less expensive for the fund to buy back shareholders' holdings.

The fund is asking shareholders to approve a reorganization that would require the fund to repurchase shares at regular intervals, according to a preliminary proxy statement the fund filed with the SEC last week. The change will insure shareholders that the fund will conduct periodic repurchases of fund shares, the fund said in the proxy statement. Currently, the fund has the option of conducting occasional tender offers to buy back shares.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.