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Closed-End Fund Advantages & Key Points

by on December 20, 2011

Here is short list of CEF Advantages. Please feel free to add comments with your favorite CEF feature.

CEF Key Points

* Oldest US Fund Structure – 1893 (first ETF was 1993)

* Best Known for Income, International & Municipal Bonds

* Discounts & Premiums to Net Asset Value

* Ability to Use Two Unique Types of Leverage
– Fund Leverage & Discount  Leverage

* Fixed Capitalization (no redemption pressure)

* Intraday Trading (Control in Price Execution
– Stop Loss, Limit & Good Till Cancelled Orders

*  Most CEFs Listed on The New York Stock Exchange

*  Some Unique Asset Classes: (Covered Call / Senior Loan)

*  A Diversified & Professionally Managed Pool of Assets

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