Gabelli Funds LLC of Rye, N.Y. is going back a second time to shareholders of two of its funds to seek approval for adding shares with sales charges.
Gabelli, a no-load fund group, said shareholders in its Small-Cap Growth and Equity Income funds failed to approve a proposal to add sales loads in May, according to a preliminary proxy statement filed with the SEC Sept. 23. Gabelli is now asking shareholders once again to approve the proposal at a meeting scheduled for Dec. 1.
The move to add sales charges requires approval from shareholders representing a majority of the funds' shares. In May, a majority of those who voted favored the proposal to add class shares, but those who voted represented less than 51 percent of the outstanding shares, according to the proxy statement.
A spokesperson for Gabelli Funds was not available to comment. Although the funds want to add the load shares as an option, the funds' directors have not decided that they will offer load shares to the public, according to the proxy statement.