Overview
A closed-end fund, a type of investment company, generally issues a fixed number of shares that are listed on a stock exchange or traded in the over-the-counter market. The assets of a closed-end fund are professionally managed in accordance with the fund’s investment objectives and policies, and may be invested in stocks, bonds, and other securities.
Committees & Working Groups
ICI Contacts
News & Publications
News & Publications
ICI Applauds Reintroduction of House Bill to Protect Investors and Expand Private Market Access
Washington, DC; May 14, 2025—Today, Investment Company Institute (ICI) President and CEO Eric Pan released the following statement on the reintroduction in the US House of Representatives of legislation to protect closed-end funds (CEFs) and their investors. The Increasing Investor Opportunities Act, was cosponsored by Reps. Ann Wagner (MO-02) and Gregory Meeks (NY-05). “This bipartisan Increasing Investor Opportunities Act would allow CEFs to invest their assets more freely in securities issued by private funds, increasing opportunities for retail investors to access private markets. The bill...
Academic Literature in Support of CEF Activism: We Don’t Think Those Studies Mean What You Think They Mean
Overview One of the most enduring questions in finance is the puzzle of why closed-end funds (CEFs) trade at a discount to their net asset values (NAV). Despite nearly 60 years of academic research, [1] the issue remains unsettled. [2] The issue is at the center of a current policy debate. In submissions to the SEC regarding a proposed NYSE rule change, [3] activist hedge funds and their supporters seem to believe it is self-evident that activism benefits all shareholders. [4] The activist supporters argue that activism, by reducing discounts, benefits all CEF shareholders, enhances market...
Fixing Our Broken Proxy Voting System
Key Insights: The fund proxy voting system is costly and hampers fund governance and the investor experience. Smaller fund complexes are often disproportionately impacted by the burdens of proxy campaigns. The Securities and Exchange Commission (SEC) can greatly improve the fund proxy voting system by adopting pragmatic reforms, including a new “supermajority method” of obtaining shareholder approval. Just as publicly traded companies do, mutual funds, ETFs, and closed-end funds periodically submit items to their shareholders for approval, including director nominations and other policy and...
Only Activist Raiders Would Miss Annual Meetings
Closed-end funds' shareholder gatherings invite abuse; the NYSE is finally doing something about it. by Paul Cellupica ( As published in Ignites, September 12, 2024) Powerful activist investors have been abusing the New York Stock Exchange's annual shareholder meeting requirement for listed closed-end funds, a requirement that provides little benefit to long-term shareholders and costs them millions of dollars. The NYSE's proposal to change its rules and eliminate this burden is the right move, and we urge the Securities and Exchange Commission to permit this rule change to protect long-term...
Research & Statistics
Research & Statistics
Support NYSE’s Proposal—End Unnecessary Annual Meetings for Listed Closed-End Funds
The New York Stock Exchange’s (NYSE) annual shareholder meeting requirement for listed closed-end funds (CEFs) is creating an end-run around the investor protections of the Investment Company Act of 1940 (1940 Act), the landmark law governing mutual funds and other registered investment companies. To protect long-term shareholder interests, the Securities and Exchange Commission (SEC) should adopt the NYSE’s recent proposal to eliminate this requirement, as it provides little benefit to long-term shareholders, costs them millions of dollars in expenses, and exposes their money to the impacts...