According to Aberdeen, nearly seven in ten (69%) of financial advisors surveyed reported using closed-end funds
when building client portfolios.
tend to be a misunderstood investment.
So Nuveen has tried to offer support for closed-end fund
vehicles over the years.
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.
Owned primarily by retail investors, the world of closed-end funds
(there are about 800 of them with $200 billion in assets, Galley says), whose shares trade mostly on the New York Stock Exchange, offer a unique way to generate alpha, because they trade at either a discount or a premium to their net asset value (NAV).
The municipal managed account, called First Trust Municipal Closed-End Fund
Portfolio, begins with a universe of approximately 110 national municipal closed-end funds
and U.S.-domiciled closed-end funds
as well as offshore and local closed-end funds
Also, steer clear of closed-end fund
IPOs because prices almost always fall in the following weeks.
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.
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.
BANKING AND CREDIT NEWS-October 9, 2018-Putnam Investments authorized to renew share repurchase program on closed-end funds