_{A Closed-End Fund (CEF) is a managed investment vehicle which holds a portfolio of assets aligned with an investment objective. CEFs offer market-structure advantages over other fund types, including opportunities to purchase shares at discounts to Net Asset Value (NAV) and to sell shares above market price through tender offers – both enhancing potential returns for investors.}

Our income is derived solely from our clients, our loyalty is to our clients not a large bank.

Closed-End Fund History

In the investment world, 1893 marked a pioneering era with the birth of Closed-End Funds, well before the formation of the first Mutual Fund in the United States more than three decades later. These distinctive investment vehicles offer a truly unique pathway for investors to realize their long-term financial objectives.

Features

Closed-End Funds (CEFs) are professionally managed investment companies often compared to traditional Open-End Mutual Funds but possess several distinguishing features. CEFs have a fixed number of shares outstanding, which are listed on securities exchanges and bought and sold on the open market. Transactions in CEF shares are based on their market price, determined by a bid and ask. In contrast, transactions in shares of open-end mutual funds are based on their Net Asset Value (NAV), determined at the close of each business day. Notably, the price of a CEF may be above (trading at a premium to) or below (trading at a discount to) its NAV. Investors have the opportunity to enhance their return on investment by making purchases at a discount.

Closed-End Fund Advantages

• Opportunity to purchase at a discount: investors can purchase additional shares in the market and put more than a dollar of net assets to work for every dollar invested. This means investors can often buy a dollar’s worth of securities for perhaps 85 cents or less.
• Discount may narrow over time: if during the holding period the discount narrows, the reduction in the discount gives a boost to the fund’s performance.
• Managed Distribution Plans: Guaranteed annual payout.
• Higher Distribution Yield: the discount advantage can continue to reward investors for many years as the rate of income will be higher for a CEF at a discount versus an identical mutual fund at NAV.
• Efficient Portfolio Management: Closed-End Funds managers are responsible for a stable pool of capital, unlike Mutual Fund managers who must worry about constant inflows and outflows of cash. 
• Inefficient/Underfollowed asset class
• Ability to Control Market Price and Timing: Closed-End Fund orders can be placed throughout the trading day, and limit prices can be specified.
• Rights Offerings/Tender Offers: Capital can be increased through the issuance of shares in conjunction with a rights offering. Capital can be reduced when shares of the fund are repurchased in conjunction with a tender offer.

Blue Bell Private Wealth Management Advantages

• Discount-Focused Investment Process: When we buy at a discount, our clients get more Net Asset Value (NAV) for each share they buy than they would if invested in a traditional fund structure
• Participation In Tender Offers: We actively monitor and participate in tender offers, allowing clients to capitalize on opportunities to sell shares at advantageous prices
• Aligned Interests: Unlike traditional financial institutions, our sole compensation comes from client fees. We have never taken a kick-back from a fund company or bank, and we never will.

Benefits

Closed-End Funds offer many benefits to investors.

• Income or Cash Flow
• Active Portfolio Management
• Asset Structure
• Leverage for Potential Higher Returns and Distributions
• Market Pricing, Trading Liquidity and Flexibility