Closed End Funds – Investment Guide

Closed-end funds

Discover the latest updates on our funds, key benefits of investing in closed-end funds, and valuable insights. See our resources to learn more and take action today.

About our closed-end funds

Key benefits

01

Stay fully invested

“Closed” structure allows for greater flexibility in the types of investment strategies that can be used and helps portfolio managers stay invested for the long–term without forced selling.

02

Higher potential income and return

Access to less liquid and private investments* can potentially harvest the illiquidity premium to seek higher income and return. Unlike private funds there are no performance fees.

03

Intra-day liquidity

Listed CEFs can offer intra-day liquidity. The term feature ensures NAV liquidity upon maturity. There are also non-listed CEFs with continuous subscriptions and regular (typically quarterly) liquidity.

*Restricted and Illiquid Investments Risk. Certain closed-end funds may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. The fund may not be able to readily dispose of such investments at prices that approximate those at which the fund could sell such investments if they were more widely traded and, as a result of such illiquidity, the fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting the fund’s NAV and ability to make dividend distributions. The financial markets have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time.

Our approach to closed-end funds

We are focused on helping investors achieve their financial goals. Learn more about how we seek to deliver value in our CEFs.

Benefits of CEFs

CEFs aim to deliver consistent income and performance over multiple market cycles, helping investors potentially achieve their long-term financial objectives.