It is unfortunate that the July 15 hearing in the case of Philip Goldstein v. Scudder New Europe Fund (MFMN, 7/26/99 ) remained mired in legal interpretations instead of delving into the real issue at hand. The presiding judge and attorneys focused on interpretations of SEC no-action letters. They never got into a debate on the pros and cons of imposing redemption fees on closed-end funds when they open. Industry observers argue both ways, and it is a debate worth having.

Goldstein, an arbitrageur who holds 150,000 shares in the closed-end fund, wanted Scudder to allow shareholders to vote separately on opening the fund and on imposing a redemption fee.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.