Bob, My point was that as a brain dead indexer, EWM would not raise cash for the portfolio by selling securities, thus the concept of cash restrictions shouldn't bother them. I forgot about the Creation Units, which should hurt the sponsor, if anyone, not the portfolio.
MF does hold cash from time to time. Also, with that huge 1.92% expense ratio, they should get fired if they don't trade. If the fund ever again goes to a discount, a move to open end it could cause them problems, and that would be a portfolio problem, not a sponsor problem.
MB |
