Because of their distinctive structure, closed-end funds could offer investors a leg up in the muni market, but be sure to get comfortable with the quirks of CEFs before investing.
Although the asset class saw some changes during the first six months of 2012, the numbers were somewhat similar to those at the 2011 midpoint.
A recent Morningstar survey found that current closed-end fund investors are using the vehicles for retirement income, but potential investors desire more education.
As fixed-income CEFs appreciate, investors seeking yield should be cognizant of bond rollover into lower-yielding assets as well as the added risk of leverage, says RiverNorth's Patrick Galley.
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