1-888-405-4332
Investment Management

Closed-End Fund Strategy

Scroll Down

Emphasis on current income. Principal risk and fluctuation is expected and acceptable over the intended investment time horizon (3 to 5 years). Portfolio will consist of a determined allocation among fixed income closed-end funds, preferred equity closed-end funds, and equities with a primary emphasis on income. Closed-end funds may employ leverage, which may increase volatility.

Objective

  • Typically offered/traded at a premium or discount to its net asset value (NAV).
  • Cash can remain fully invested at all times versus open-end mutual funds, which need to meet investor redemptions and invest new investor contributions.
  • Potential for high income through use of leverage and price appreciation if purchased at discount to NAV and the discount narrows over time.
  • Risk and volatility can increase with the use of leverage, and funds are traded on major stock exchanges which are subject to all market risks.

Strategy

  • There are approximately 20 different holdings in the strategy, predominantly in the fixed-income asset class with some holdings representing the equity assets class.
  • High-yield closed-end funds can benefit individuals looking for income and capital appreciation for those who have a higher tolerance for risk in order to obtain higher yields.
  • This strategy can add diversification to a balanced portfolio.

 

Portfolio Management

Rick Keller, CFP®

Chariman

Find your Advisor.

View all bankers and advisors

Let's talk... Please enter a Specialty and Location to view a banker/advisor near you.

Deposit and loan products offered by First Foundation Bank, Member FDIC and Equal Housing Lender.

Investment and Advisory Services provided by First Foundation Advisors, an SEC-Registered Investment Advisor. Trust Services and Insurance Services are offered through First Foundation Bank. First Foundation Insurance Services license number #0H38553.

Investment, Insurance, and Advisory Products and Services:

  • ARE NOT FDIC INSURED
  • ARE NOT BANK GUARANTEED
  • MAY LOSE VALUE
  • ARE NOT A DEPOSIT
  • ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY