In a somewhat surprising move, the board of the AIM Select Real Estate Income Fund (RRE) announced that they will present an open-ending proposal to shareholders in an upcoming meeting. There does not appear to be any really large shareholders in RRE, so it looks like the board may have decided to do this on their own, without pressure from activist shareholders.
Part of the reason for the open-ending might be that this is AIM's only closed-end fund, and they decided that they weren't going to launch any more. If this were the case, it may be better for AIM to concentrate their resources on their open end funds and other investment products, and not bother with this single closed-end fund. Plus, when your only closed-end fund trades at a double-digit discount for over two and a half years, it doesn't reflect well on any of your investment products.
I bought shares in RRE a little over a year ago and will vote in favor of the proposal. This isn't because I see any major problems with the fund, but I do think there are plenty of other options right now as far as closed-end real estate funds go. So I will be happy to take the 13%+ return from the elimination of the discount, and invest it elsewhere.
RRE 1-yr chart: