Why do some closed-end mutual funds trade above or below their net asset values?

Mutual Funds
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November 2016
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There are a number of reasons why some closed end funds trade away from their (NAV) net asset value, but it primarily has to do with just a few. Due to their limited number of shares, hence the name “closed” end funds, the market forces of supply and demand come into play creating potential deviations from the actual underlying value of the fund. Demand for the fund can come in many forms including: attractiveness of the manager, asset class, peer group, etc. It’s also important to pay attention to fees which can have a significant impact on the value of the funds holdings.

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