REIT Fund Wins Battle, Loses War

Talk about a Pyrrhic victory.

The $127 million (NRL Quote)Neuberger Berman Real Estate Income Fund is slated to be liquidated -- despite winning a nearly three-year battle with dissident shareholders.

NRL successfully defended in court what may have been the first use of a poison pill defense against a hostile takeover by a closed-end mutual fund. Nevertheless, the fund's board said last week it's recommending that the fund be liquidated and the proceeds distributed to investors.

Unlike open-end funds, which issue and redeem shares at net asset value upon request by shareholders, closed-end funds issue a fixed number of shares that trade on an exchange. That means their share prices can fall below their net asset value per share when the investment strategy falls out of favor. ...