Closed-end fund

An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-end fund.

Closed-End Fund

A mutual fund that issues a fixed number of shares at its establishment, and, afterwards, neither increases nor decreases the number of shares. Like other mutual funds, a closed-end fund is actively managed, meaning that the securities underlying the fund change from time to time in accordance with the fund's investment goals. A shareholder in a closed-end fund redeems shares with the issuer as with open-end funds, but may trade shares as if they were stocks. The value of shares in a closed-end fund is determined by supply, demand, and the fund's net asset value. See also: Exchange-traded fund.

Closed-end fund.

Closed-end mutual funds are actively managed funds that raise capital only once, by issuing a fixed number of shares. Like other mutual funds, however, fund managers buy and sell individual investments in keeping with their investment objectives.

The shares are traded on an exchange and their prices fluctuate throughout the trading day, based on supply, demand, and the changing values of their underlying holdings. Most single country funds are closed-end funds.

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References in periodicals archive

According to Aberdeen, nearly seven in ten (69%) of financial advisors surveyed reported using closed-end funds when building client portfolios.

Financial advisors increasingly favour closed-end funds

Closed-end funds tend to be a misunderstood investment.

Money Management: Don't overlook the benefits of closed-end funds

Less publicized these days are what might be considered the original exchange-traded funds, known as closed-end funds. Closed-end funds also issue a certain number of shares, which trade between investors on a stock exchange.

The "other" exchange-traded funds

The municipal managed account, called First Trust Municipal Closed-End Fund Portfolio, begins with a universe of approximately 110 national municipal closed-end funds.

First Trust goes after municipal bonds

and U.S.-domiciled closed-end funds as well as offshore and local closed-end funds worldwide.

Morningstar acquires provider of fund data

Also, steer clear of closed-end fund IPOs because prices almost always fall in the following weeks.

Discount days: closed-end funds look increasingly attractive

In a recent paper Lee, Shleifer and Thaler (1991), hereafter LST, argue that closed-end fund discounts reflect compensation for resale price risk in a segmented market primarily composed of individual investors.

Investor sentiment and the closed-end fund evidence: impact of the January effect

Effective shortly after close of business on November 3, 2017, Highland Floating Rate Fund converted from an open-end fund to a closed-end fund, and began trading on the NYSE under the symbol HFRO on November 6, 2017.

Highland Floating Rate Opportunities Fund declares USD 0.770 per share monthly dividend

BANKING AND CREDIT NEWS-October 9, 2018-Putnam Investments authorized to renew share repurchase program on closed-end funds

Putnam Investments authorized to renew share repurchase program on closed-end funds