In conclusion, a closed-end's structure offer several features that allow investors to enhance yield. The fixed asset base allows managers to be fully invested as well as adopt measures such as leveraging to maximize the yield. Also, the stable capital base prevents new money inflows that dilute the overall yield in the portfolio in a falling rate environment. This allows the investor to achieve a target yield with less risk entailed in the portfolio. This benefit is accomplished while providing the benefits of a traditional mutual funds, such as diversification and professional management.
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