Closed-end funds have a long history in the United States and continue to attract investors in pursuit of income, says Rennie McConnochie of Aberdeen.
Industry professionals say interest rates and leverage costs are important factors to consider when assessing the risk level of a closed-end fund.
Investors looking beyond stocks and bonds may want to consider closed-end funds containing alternative investments, say CEF industry professionals.
Viewed from a global perspective, closed-end funds offer a wide range of potentially attractive investments, including emerging market strategies, CEF pros say.
Closed-end fund demand has increased as investors continue to seek income in a low-yield environment, CEF pros say.
Closed-end fund discounts have narrowed, but opportunities may remain in certain areas of the market, CEF industry pros say.
Healthcare cost, government regulation and the lack of financial education pose threats to worry-free retirement, but also create opportunity, industry pros say.