Gabelli said the action would permit the elimination of shares held through certain brokers and financial consultants in omnibus and individual accounts where the beneficial owner is not disclosed. The action requires the approval of the Gabelli Board of Directors, according to a news release.
Under current practices, intermediaries holding the shares for the benefit of undisclosed investors typically require service fees to be paid on assets their clients hold in the Fund’s shares. However, Gabelli, citing reasons “specific to the fund,” said neither “the Fund nor the Adviser should be responsible for the costs associated with maintaining these accounts held at these intermediaries.”
The Gabelli ABC Fund is not currently open to new investments made through intermediaries.