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Closed-End Fund

Closed-end funds are stock-exchange-listed firms established with the sole aim of managing a portfolio of investments on behalf of shareholders.

A closed-end fund is publicly traded and while investors can, in principle, trade either in the Closed-end fund’s shares or directly in the underlying securities, a Closed-end fund rarely trades at a price equal to the value of the securities it holds (its Net Asset Value, or NAV). Closed-end funds usually trade at a discount or a premium to NAV.

Performance of closed-end funds can be measured simply as the net return on the shares, which is itself derived from three variables: the gross return on the underlying asset portfolio; fund-management fees; and the changes in the discount (market-to-book ratio).

Closed-end funds can be splited into five classes, based on their prospectus objectives: Municipal bond, taxable fixed income, domestic equity, foreign equity, and other funds.

Get a closer look at all our Closed-end Funds database.

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