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.

If shareholders approve the proposed change, the fund will automatically repurchase shares quarterly. Shareholders are scheduled to vote on the proposal at a meeting scheduled for Feb. 25.

The AIM Floating Rate Fund had $424 million in assets under management as of Oct. 31, according to Financial Research Corp. of Boston, a fund tracking and consulting firm. The fund had net sales of $128 million through Oct. 31, according to FRC.

AIM Advisors of Houston, Texas is the adviser to the fund.

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