SEC Approves Sneaky Fund Fees and Exit Penalties
Published Date: 5/14/2025
Notice
Summary
GoldenTree Opportunistic Credit Fund and its advisor asked the SEC to allow them to offer different types of shares with special fees and early withdrawal charges. This change affects investors in these funds and could impact how and when they pay fees. The SEC will decide by early June 2025 unless someone requests a hearing.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Allowing Multiple Share Classes
The fund asked the SEC for permission to issue multiple classes of shares so the same closed-end fund could offer different share types with different fee or payment terms. The application was filed March 24, 2025; interested persons may request a hearing by 5:30 p.m. on June 2, 2025, after which the SEC may issue an order.
Permitting Asset-Based Fees and Withdrawal Charges
The applicants asked to allow the fund to impose asset-based distribution and/or service fees and early withdrawal charges on certain share classes, which could increase what you pay if you invest in those shares. The application was filed March 24, 2025, and hearing requests must be received by 5:30 p.m. on June 2, 2025.
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