Closed-End Shareholder Criticizes Board
September 4, 2000
Closed-end fund shareholder Philip Goldstein has charged that the board of directors of the Dresdner RCM Global Strategic Income Fund is out of touch with the interests of shareholders because board members are unwilling to open the fund.
That charge, and others, were made in a preliminary proxy statement Goldstein filed with the SEC Aug. 28. Goldstein, who is principal of Opportunity Partners, a private investment partnership in Pleasantville, NY., owns 700,000 shares of the $90 million fund for himself and his clients. The fund is managed by Dresdner RCM Global Investors of San Francisco.
Goldstein also said three of the board members lacked commitment because they live outside the United States.
In the proxy, Goldstein asks shareholders to vote to open the fund and elect him and two others, directors of the fund. Goldstein said that if elected, he and the two other nominees would seek to pressure the full board to open the fund.
In response to Goldstein's allegation, Dresdner executives said the board is composed of hard-working, dedicated professionals who refuse to give in to the needs of one shareholder, thereby sacrificing the needs of others.
"This board is in no way detached from the interests or viewpoints of shareholders as Phil Goldstein asserts," said Luke Knecht, president and portfolio manager of the fund in a telephone interview. "They [the directors] all work extremely hard on behalf of the fund."