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Money Management Executive

Korean Investment Fund Will End Closed-End Status

November 12, 2001, 1:00 a.m. EST 1 Min Read

Korean Investment Fund Will End Closed-End Status:Shareholders Approved Conversion in September

The Korean Investment Fund will convert from a closed-end to an open-end mutual fund following the close of business on Friday, Nov. 30, 2001. The change was approved by stockholders at the fund’s annual meeting on Sept. 14.

Trading in the fund’s shares will be suspended by the New York Stock Exchange before trading begins on Nov. 27. "Upon the conversion, the fund will begin a continuous public offering of three classes of shares, like the other equity-oriented Alliance-managed mutual funds, and the Fund’s share will be formally delisted from the NYSE," the company said in a statement.

The Korean Investment Fund was established in February 1992 and has been managed by Dongho Lee and A. Rama Krishna since May 1993. As of Nov. 2, the fund’s assets were $47 million; as of Nov. 9, the fund was trading at a 3.3% discount from its net asset value.

 

According to published reports, the conversion was in response to an attempt by fund advisor Alliance Capital Management to reduce the nearly 20% discount from market value of the fund’s shares. When buying back shares did not have an effect on the discount, Alliance proposed making the change to a mutual fund,
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Money Management Executive
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