6 ways closed-end funds can stand up to a bear market

A bear market brings volatility, investor uncertainty and may effect returns negatively. Closed-end funds can help provide diversification, potential income, access to defensive asset classes and more. The following six videos explain how closed-end funds may be able to navigate through market downturns.

Access to defensive asset classes

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Active management: The flexibility to react to the market

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Illiquidity premium: The ability to invest in illiquid securities

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The potential for a higher level of consistent income

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No cash drag: Not beholden to redemptions

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Leverage: A closed-end fund’s ability to issue debt or raise money through the sale of preferred shares

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RISK WARNING

The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.