He recommends lower-cost, open-end funds when no similar closed-end looks worth buying.
After all, loans remain one of the few asset classes that offer retail investors relatively wide distributions, with open-end funds paying yields of 4.5-5% and closed-end funds that use leverage paying 6-7%.
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That can be most severe if your broker doesn't offer free reinvestment of the monthly dividend payouts, as done by open-end funds.
You can buy shares at any time at the net asset value, as with open-end funds, but you can only redeem quarterly and not necessarily all your holdings.
The closure was the first in the 40-year history of open-ended property funds and prompted an outcry.
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Open-end mutual funds trade directly with investors, creating and destroying shares as needed to account for investments and withdrawals.
For investors interested in open-ended offshore funds, the five listed in the table above are some of the best performers over the past three years.
Unlike open-end mutual funds that are bought and sold at Net Asset Value (NAV), ETFs are traded throughout the day at whatever price clears the market.
That is how some peddlers of Germany's open-ended property funds have responded to reactions, verging on panic, to the closure of two such funds since early December.
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But in most cases, I think I have a better chance at limiting risk (and ideally boosting returns) by sticking with open-end bond funds like DoubleLine Core Fixed Income (DLFNX), DoubleLine Total Return (DLTNX), Thompson Bond (THOPX), PIMCO Income (PONDX), and PIMCO Foreign Bond US Hedged (PFODX).
Floating-rate funds come in three varieties: open-end, closed-end and a hybrid of the two.
My policy on bond investing is to only use open-end no load Institutional class mutual funds to invest in bonds.
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When the Fed pours money into the system with the purchase of mortgage-backed securities, combined with guidance from the Federal Open Market Committee that the federal funds rate will remain near zero at least through mid-2015, it depresses yields on debt instruments.
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Last year Allianz announced plans to build an army of 2, 000 financial planners who would sell Allianz (and other asset managers') funds in Germany on an open platform-may the best product win.
But at the same time, closed-end funds, being different than open, they only have to report their holdings every six months but they can go to nine months, where a regular mutual fund, every quarter they have to send out prospectuses and all sorts of things.
This is evident in the chart below, which displays the ratio of puts bought to open, relative to calls, on three major exchange-traded funds (ETFs).
In times of less turmoil, the central bank generally only deals with primary dealers, a group of 20 big banks and brokerage houses with which the New York Federal Reserve conducts its open-market operations, buying and selling government securities to guide the federal funds rate.
In December China Investment Corporation, one of the country's many sovereign-wealth funds, acknowledged buying shares of Chinese banks on the open market.
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We will also propose that all these funds, all of them, be open to equal competition from faith-based and community groups.
The Bill and Melinda Gates Foundation demands that every research project it funds has to make its full data set freely available, like open-source software code.
There was no good reason that open market purchases should be considered routine and non-threatening if the target Fed-funds rate is above a certain level and the end of the world below that level.
The mutual funds and unit trusts sold to Uncle Edgar and Aunt Edna are also open-ended, allowing retail investors to move money in and out when needed.
The other 5, 700 are either no-loads that carry a transaction fee, or load funds, or not directly open to individual investors.
However, argues Svetlana Tsalik of the Open Society, a group financed by George Soros, a well-known investor and philanthropist, these funds can help to sterilise capital inflows and (in theory) to save for a rainy day.
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Supporters of the law hope that it will open up a new class of investment options, and that banks like Goldman Sachs will offer socially-minded funds that consist entirely of benefit corporations.
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If short-term interest rates (primarily the target Fed-Funds rate) are close to zero the impact of more bank credit and more money creation through open market purchases remains.
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On Tuesday - the day funds at the garden ran out - finance minister Sue Essex offered the garden money to keep it open for a month following a meeting of the trustees.
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