Closed-end Fund

An investment fund with share certificates that are limited in advance. When the planned volume is reached, the fund is closed and no more shares are issued. The market value of a share is not based on the actual, proportional value of the fund’s assets, but is subject to free price formation, so that the fund is often traded at a not inconsiderable premium (agio) or sometimes also at a discount (disagio) compared to its net asset value, depending on supply and demand. In the case of a closed-end fund, the investor has no right to redeem the share. The shares can only be sold to third parties, possibly via a stock exchange.