Closed-end funds have become popular as a way to access a wide range of asset classes and investment strategies, with the potential to generate high levels of income. Cohen & Steers is one of the largest domestic investors in closed-end funds and offers this Knowledge Center as a resource for learning about the closed-end fund market and staying informed about your investments.
- Learn the basics about closed-end funds
- Read our latest commentary on the closed-end fund market
- Go in-depth: Unexpected Returns: How Closed-End Funds Have Defied Conventional Wisdom
on Yields and Discounts
- Discover more through industry groups: Closed-End Fund Association (CEFA) and Capital Link
- Listen to the Closed-End Fund Association (CEFA) Podcast about preferred securities
- Find information about Cohen & Steers’ closed-end fund offerings
- Visit the Tax Center for information on the tax treatment of our closed-end funds
Risks of Investing in Closed-End Funds
Shares of many closed-end funds frequently trade at a discount from their net asset value. The funds are subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods, adversely affecting the value of an investment in a fund.
Investors should consider the investment objectives, risks, charges and expense of the fund carefully before investing. You can obtain the fund’s most recent periodic reports, when available, and other regulatory filings by contacting your financial advisor or visiting cohenandsteers.com. These reports and other filings can be found on the Securities and Exchange Commission’s EDGAR Database. You should read these reports and other filings carefully before investing.
The use of leverage by closed-end funds is speculative and there are special risks and costs associated with leverage. The use of leverage increases the volatility of a fund's net asset value in both up and down markets. A closed-end fund may seek to enhance its dividend yield through leverage but there is no guarantee that a leverage strategy will be successful.