closed fund

(redirected from Closed Funds)

Closed fund

A mutual fund that is no longer issuing shares, mainly because it has grown too large.

Closed Fund

A mutual fund that is closed to new investors, whether permanently or temporarily. A mutual fund's management may decide to close the fund because it may believe that there are too many investors and/or assets in the fund to generate a return appropriate to its investment strategy. Sometimes such a fund prevents even current investors from buying more shares of the fund, although this is less common. A closed fund should not be confused with a closed-end fund, which is a different concept altogether.

closed fund

A mutual fund that no longer issues shares to nonshareholders but that may continue to sell shares to existing shareholders. A fund usually closes because its management has decided the fund has grown too large to be managed effectively.
Case Study Mutual funds that have closed to new investors sometimes reopen. Managers may close a fund to new shareholders for several reasons. A fund may grow so large in assets that the portfolio becomes difficult to effectively manage. Large investment positions in individual securities can be difficult to acquire or sell without affecting the prices of securities. Thus, portfolio managers of very large funds lose flexibility because they are mostly limited to owning the stocks of large corporations with huge numbers of shares outstanding. Likewise, a mutual fund that specializes in the investments of a relatively narrow market segment may have limited investment options. A fund that concentrates on investing in small-capitalization firms or companies from developing countries is likely to face limited share availability. Investors may pour money into a successful mutual fund that the portfolio manager is unable to invest. Mutual funds often close after strong asset growth from a long bull market. For example, Janus Capital closed 7 of its 21 funds in a two-year period beginning in mid-1998. Closed funds included the popular Janus Fund, which had grown in size to $52 billion of assets. A fund that has been closed may subsequently reopen if the fund size shrinks or if the portfolio manager believes new investment opportunities have become available. A bear market may reduce the size of a fund because of reduced stock values and as a result of share redemptions by the fund's shareholders. A smaller fund means reduced income to the fund's managers, who may decide to reopen the fund to new investors. In late 2000 Fidelity Investments announced that it would reopen both its Contrafund and Growth & Income Portfolio funds to new investors after holders had withdrawn nearly $11 billion by redeeming the funds' shares.
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20 bln were held by closed funds and the remaining EUR 487.
A lot of organizations have closed funds because they believe it will reduce their ability to manage them effectively for shareholders -- that is very much a fiduciary act, thinking of investors first.
FTSE 100 Index listed Friends Life insurer Resolution, which was set up in 2008 to consolidate the life insurance industry and is a major manager of closed funds, slumped as much as 13%, while Aviva fell 8%, Legal & General dropped 7% and Prudential declined 5%.
Of the pounds 36bn of capital targeting the UK in 2010, DTZ Research estimates that pounds 20bn (55%) is from UK domiciled funds, approximately pounds 10bn (27%) from US and almost pounds 2bn (6%) is from German open ended funds, special funds and closed funds.
most recently closed funds while mean management fee for most recent venture funds have also dropped by 15 basis points with largest funds cutting fees by the highest amount.
The group, who manage closed funds including London Life, Phoenix and NPI, yesterday said they were planning an acqusition drive.
The panel said this lack of access to advice was one of the main concerns highlighted in its report on whether customers in closed funds were being treated fairly.
Those kinds of changes, West says, will be difficult for smaller to mid-size schools because generally they do not have access to the best managers in these asset classes due to investment minimums, frequent personnel changes, and closed funds.
TIMOs are generally "fixed term" (generally 10 to 15 years), closed funds in which many of the incentives are not particularly encouraging for the health of forest ecosystems.
However, we believe Britannic has the appropriate expertise to buy closed funds and achieve an attractive return.
The resulting lack of a steady inflow of fresh funds meant that investment policies for closed funds had to be extra cautious (buying government bonds rather than shares) making it unlikely the fund would be able to produce dazzling results.
Readers still invested in any closed funds can arrange a free review of their plans by ringing 0800 544 644.