Closed structure
Fixed asset base offers unique investment possibilities for emerging market countries where thin trading volumes impair liquidity
No cash drag
Portfolio manager can remain fully invested at all times
No forced selling
Closed structure minimizes the need to sell securities at unattractive prices in order to meet redemption requests
Ability to leverage
Leverage (borrowing) use can enhance performance after all expenses with low rates, cost of borrowing currently at historic lows.*
*Leverage can potentially magnify investment losses.
No investor impact
No impact from investor activity (buying/selling/activism) on underlying assets in the fund’s portfolio
Expenses
Potentially lower fund expenses than other investment products
Active fund management
Fund manager actively researches and selects securities: doesn’t just choose a basket of index securities
Purchase Discounts
Opportunity to purchase closed-end funds at prices that represent discount to net asset value (NAV) through closed-end fund trading on exchanges
Liquidity
Closed-end funds trade on well-known stock exchanges (provides liquidity and transparency)
Suitability
Many advisors and investors view closed-end funds as a suitable choice for various strategies and accounts, including retirement savings, trusts, and investment accounts