ETFs and closed-end funds

Tell us more about how your clients use closed-end funds? Closed-end funds have long been liked by the asset allocation industry. Because they have a fixed capital value, are quoted on a stock exchange and track a particular benchmark, it’s always been relatively easy to work out if, at a particular point in time, they are trading at a discount or a premium to their net-asset value. So investment managers can buy them when they are trading at a significant discount to their net-asset value and then sell them again once that discount closes. Many managers, especially hedge fund managers and...