Closed-end funds are not nearly as well-known as open-end mutual funds, which dominate the market with trillions in assets. But the $300 billion-plus sector does offer potential and somewhat unique advantages for investors, experts noted in a recent panel discussion on closed-end funds hosted by TheStreet.
Closed-end funds enjoy three key advantages over mutual funds and ETFs, according to panel members:
1. Closed-end funds are structured differently than their open-end cousins, with potentially more capital stability that can benefit more risk-inclined fund managers.
City of London Investment Group PLC (LON:CLIG) is an asset management group whose principal activity is providing emerging market asset management products to institutional investors via its principal operating company City of London Investment Management Company Limited.