Alliance Capital Management of New York is asking shareholders of the closed-end Korean Investment Fund to approve a proposal to convert to an open-end mutual fund. But the conversion, which Alliance said will alleviate the fund's persistent discount, will bring with it two stringent redemption fees aimed at preventing a severe outflow of assets. It will also mean the introduction of a 0.30 percent 12b-1 distribution fee.

If the conversion plan is approved, investors who redeem their shares of the Korean Investment Fund within the first 199 days after its conversion, will pay a four percent redemption fee. Investors who redeem assets within 200 to 365 days after the conversion will have to pay a two percent fee.

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