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
Active management: The flexibility to react to the market
Illiquidity premium: The ability to invest in illiquid securities
The potential for a higher level of consistent income
No cash drag: Not beholden to redemptions
Leverage: A closed-end fund’s ability to issue debt or raise money through the sale of preferred shares