1 Shares of closed-end funds frequently trade at a discount from their net asset value which may increase investors’ risk of loss. The risk of loss due to this discount may be greater for investors expecting to sell their shares in a relatively short period after completion of the public offering. This characteristic is a risk separate and distinct from the risk that a closed-end fund’s net asset value may decrease as a result of investment activities.
2 Leverage is a speculative technique and there are special risks and costs associated with leveraging, including (i) the likelihood of greater volatility of NAV, market price and dividend rate than a comparable CEF without leverage; (ii) the risk that fluctuations in the interest or dividend rates that leveraged CEFs must pay on any leverage will reduce the return for a leveraged CEF; (iii) the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the CEF than if the CEF were not leveraged, which may result in a greater decline in the market price of the CEF; and (iv) leverage may increase operating costs, which may reduce total return. There is no assurance that a leveraging strategy will be successful.
3 Source: As per data sourced from Dealogic.
Please consider the investment objectives, risks, charges and expenses of a CEF carefully before investing. The prospectus contains this and other information about a CEF. To obtain a prospectus, investors need to contact a financial advisor. Please read the prospectus carefully before investing.
Besides the general investment risk of holding securities that may decline in value and the possible loss of principal invested, closed-end funds may have additional risks related to declining market prices relative to net asset values (NAVs), active manager underperformance and potential leverage. Some funds also invest in foreign securities, which may involve currency risk. There is no assurance that the fund will achieve its investment objective.
Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. NAV is total assets, less total liabilities divided by the number of shares outstanding. At the time an investor purchases shares of a closed-end fund, shares may have a market price that is above or below NAV.
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