U.S. Markets close in 5 hrs 6 mins

Closed-End Funds That Focus on Convertible Bonds Offer Big Opportunities

Scott Van Voorhis

Closed-end funds that focus on convertible securities/bonds are a niche within a niche. While popular among investors who see value in active management and the ability to buy a portfolio of stocks and bonds at a discount, closed-end funds make up a small part of the market compared to open-end funds and ETFs. At 9.1%, closed-end convertible securities funds have seen net asset value growth over the past year through June second only to 19% posted by closed-end growth funds, according to a survey by Thomson Reuters Lipper.