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Fund Times

Fund Times: Market for Closed-End Funds Still Growing

Plus, news on Fairfax's impact on Longleaf, new Fidelity CIO, and more.

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According to a recently released report from the Investment Company Institute, assets in closed-end funds have grown to $276 billion as of the end of 2005. While assets in these investment vehicles have grown over four consecutive years, recent growth represents an interesting change in direction toward equity funds. Although the majority of closed-end assets are housed in bond funds, "from year-end 2000 through 2005, assets in closed-end equity funds increased by $68 billion, or 186 percent, while assets in closed-end bond funds rose by $65 billion, or 61 percent," according to the ICI research statement.

Over this time period, the number of closed-end funds on offer has also increased dramatically, from 482 at the end of 2000 to 643 at the end of last year, a 33% increase overall. It is estimated that these funds are held by as many as 2 million households in the United States, making them an increasingly important segment of the investment marketplace.

Lawrence Jones does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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