Closed-end fund
InvestingDefinition
A pooled investment fund with a fixed share count, traded on an exchange. Unlike open-end mutual funds, share price is set by supply/demand and can deviate substantially from NAV.
Persistent NAV discounts (5-15% common) create opportunities for activist investors who push for liquidation/conversion. Heavily used by income-focused investors for leverage-juiced yield (often 8-12%). Watch for dividend-coverage warnings — many CEFs pay out of capital, hidden by accounting.
Persistent NAV discounts (5-15% common) create opportunities for activist investors who push for liquidation/conversion. Heavily used by income-focused investors for leverage-juiced yield (often 8-12%). Watch for dividend-coverage warnings — many CEFs pay out of capital, hidden by accounting.