Closed-End Fund

A closed-end fund is an investment company that generally issues a fixed number of shares and invests the capital it raises in a portfolio of securities or other assets.

A simple example

A fund with $20 of net assets per share may trade in the market at $18, a 10% discount to reported NAV.

Why this matters to income investors

Publicly traded closed-end fund shares can trade above or below net asset value, and some funds use leverage or hold less-liquid investments.

How to use closed-end fund in your research

Separate distribution rate from portfolio return, then review the discount or premium, leverage, expenses, asset liquidity, and distribution sources.

This material is general education and information, not individualized investment, tax, or legal advice.