How do closed-end funds compare with mutual funds?
Closed-end funds share many of the same attributes as open-end mutual funds: • Diversification opportunities • Professional fund management • Management fees; generally charged as a percentage of NAV • Distributions of realized capital gains • Periodic dividends In addition, closed-end funds have these features: • Closed-end funds are issued generally through an initial public offering, traded on an exchange and have a limited number of shares outstanding • May trade at a premium or discount to NAV • They typically do not have back-end loads or 12b-1 fees.
