4.5. The Relationship Between Closed-End Funds and AMCs: Economic and Financial Links
The relationship between the AMC and the closed-end fund is quite complex both economically and financially (see Figure 4.5). Groups with a significant role in this relationship include
- AMC’s board of directors
- Closed-end fund(s)
- Deposit bank
- Advisory team (or company)
- Technical committee
Figure 4.5. The relationship between the AMC, closed-end fund, and the main groups involved.
The AMC is composed of
- Board of Directors — Oftentimes agrees with its shareholders who decide to launch the AMC
- Advisory company — External company that ...