Closed-end fund

A fund with a fixed number of shares that trade on an exchange rather than being redeemed by the fund. Its price is set by buyers and sellers and can sit at a premium or discount to net asset value.

Where you will meet it

Closed-end fund appears in 2 learning outcomes on the CFA syllabus. A few of them:

• Explain mutual funds and how they differ from other pooled investment vehicles
  CFA Level I · Portfolio Management

  “A closed-end fund issues a fixed number of shares that then trade on an exchange, so its price can sit at a premium or discount to NAV.”

• Explain the routes and vehicles for gaining infrastructure exposure and what each one is suited to
  CFA Level III · Private Markets Pathway

  “The trap: a closed-end fund may have to sell long-lived assets on its own timetable.”

See also

Net asset value

Practise it

• Today's practice question One question, with every wrong option explained.
• Free Level I diagnostic test Twelve questions that show which topics to start with.
• Free finance calculators Check your arithmetic on the exam's core formulas.

All terms beginning with C · Glossary