Citigroup's closed-end fund shareholders can claim a partial victory in the Citigroup
, Legg Mason
asset swap. At their request, the New York Stock Exchange has decided to disallow brokers from voting in the proxy battles on behalf of non-voting investors that they advise, reports the Wall Street Journal
Although shareholders of just six closed-end Citigroup mutual funds have put a proxy fight, the ruling affects all of Citigroup's funds, according to the Journal.
The NYSE wrote in a filing to the SEC that switching the investment advisor for the funds is a "matter which may affect substantially the rights or privileges of such stock," and as such, would not consider the proposals to switch the investment advisor for the Citigroup funds a "routine" matter.
What's behind the opposition? The shareholders are putting up a fight to get management to correct the closed-end funds' discounts.
According to TheStreet
, Elliott Associates, a hedge fund that owns six percent of the Salomon Brothers Fund, is leading the charge.
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