TIAA and investor groups back bill to curb activist tactics targeting closed‑end funds

TIAA testified in favor of House Bill 1112, a measure sponsors described as intended to curb activist investor tactics that can disadvantage long‑term income investors in closed‑end funds.

John McCann, managing director and general counsel for TIAA Navin, told the committee that closed‑end funds issue a fixed number of publicly traded shares and often invest in less liquid, longer‑term securities that are suitable for retirement investors seeking regular income. He said activist investors and hedge funds can acquire stakes and force tender offers, conversions or liquidations that benefit short‑term owners at the expense of long‑term retirees. McCann described H1112 as a structural fix that would limit voting power above certain thresholds to reduce those pressures.

Why it matters: Supporters said the bill protects retirement income investors and the Commonwealth’s large investor base. No opponents spoke at this panel; the committee asked clarifying questions about the mechanics of voting limits and asked for follow‑up material.

Next steps

No vote was taken; the sponsor and staff will provide technical drafting details and examples for committee review.