Gabelli Funds is looking to eliminate omnibus accounting from its ABC Fund, a merger/arbitrage fund started in 1993, and require investors to own shares directly through its transfer agent. The problem is that broker/dealers are often charging a service fee for assets held in the fund through omnibus accounts, which do not disclose the beneficial owner of the account.

"For reasons specific to this fund, the advisor believes neither the fund nor the advisor should be responsible for the costs associated with maintaining these accounts held at these intermediaries. The fund eliminated its 25 basis points 12b-1 distribution fee in January 2003," the company said.

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