MorganFunShares, a closed-end fund that invests in alcohol, tobacco and casinos, will close later this year as it failed to convert enough sinners, Reuters reports. Robert Pincus, president of the fund, said he decided to close the fund due to a number of factors, including the fact the fund has only $8 million in assets and, as a closed-end fund, it is difficult to raise additional assets. Mutual funds generally are not profitable when they have less than $50 million in assets, according to Reuters.
Further, even though the fund has a high expense ratio of 2%, Pincus said, the fund has become expensive to run following the death of its founder, Burton Morgan, in March.
Morgan founded the fund in 1994 on the belief that no matter the economic climate, people will always spend money on liquor, tobacco and gambling. The funds biggest holdings include International Game Tech, a manufacturer of gambling machines and systems, and Anheuser-Busch.