The entry fee for listing a closed-end fund on the National Market is now $5,000, a decrease from a range of $100,000 to $150,000. Annual fees now range from $15,000 to $75,000, depending on the number of total shares outstanding (TSO). Annual fees may not exceed $75,000 per fund family. Prior to the changes, each fund listed on NASDAQ was assessed a separate annual fee and the range for annual fees was $24,500 to $75,000.
“The new fee schedule has substantially lowered fees payable by closed-end funds,” said Bruce Aust, Executive Vice President of NASDAQ’s Corporate Client Group. “These lower fees permit NASDAQ to compete more effectively for listings with other markets and we expect this more intense competition to benefit investors. NASDAQ is a superior marketplace for closed-end funds and other asset classes, offering superior pricing and liquidity and faster executions and tighter spreads.”
Nicolas Bornozis, President of Capital Link, a financial services company that specializes in closed-end funds, commented: “NASDAQ should be commended for adopting a separate and lower fee structure for closed-end funds. This adds a new competitive dynamic to the closed-end fund industry and will enable funds to conduct their business in the most cost-effective way.”
Closed-end funds are funds with a fixed number of shares that trade in the marketplace. Because the number of shares of a closed end fund are limited and not usually redeemed by the fund itself, the shares often trade at a premium or discount to the underlying notes or equities within the fund. The investment goals of these funds can be as varied as those of the open end funds.
NASDAQ is the largest U.S. electronic stock market. With more than 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information, visit www.nasdaq.com.
