As per the meeting, the fund's proposal to convert to an open-end investment company
was not approved and therefore, it will continue as a closed-end registered investment company pursuant to its stated investment objective and policies.
"Investors have been seeking yield in the current low interest rate environment, and junk bond funds have offered an alternative, but average investors do not expect to be cut off from trading in an open-end investment company
registered under the '40 Act," Galvin said in a statement.
However, the Division downplayed the importance of the UFIC proposal, placing a discussion of it in Chapter 8 of its report ("The Sale of Open-End Investment Company
Shares") instead of in Chapter 7 ("Investment Company Governance"), with a discussion of the UIF.