The Dessauer Global Equity Fund, a non-diversified closed-end fund formerly traded under the symbol DGE on the NYCE has converted from a closed-end to an open-end fund -- no big news -- but the change was the first as a result of an automatic conversion feature.

"When the fund was launched in May 1997," explained Tom McIntyre, president of the fund. "we became the first closed-end fund whose prospectus contained an automatic conversion feature which stated that after 18 months from the date of the initial public offering, the fund would automatically convert to an open-end fund should its shares close at a 5% or greater discount from the net asset value of the fund for 15 consecutive days starting with the last trading day of the week."

As of April 29 shares of the fund were offered to the general public at the net asset value. Those who owned shares of the closed-end fund automatically became shareholders of the new open-end fund on a share-for-share basis.

"This conversion in no way should be construed as detrimental to the fund," said McIntyre. "As a matter of fact, in the first full year of operation, 1998, the fund was up 26.3%. Year to date, the fund is up 15.2%. Assets are approximately $100 million, and the fund has approximately 8,500 shareholders. As for the fund having sold at a discount, that is a phenomenon of the closed-end structure." 

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