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.
Who invest in closed-end funds
, to narrow the discount between the funds net asset value and its trading price, and the possible decrease in activists future activity in such funds as the opportunity to further narrow discounts declines.
BANKING AND CREDIT NEWS-October 9, 2018-Putnam Investments authorized to renew share repurchase program on closed-end funds