Description
This article is from the A Guide to
Closed-End Funds (CEFs).
Different Types of Closed-End Funds
CEFs offer a wide array of investment choices for the investor.
Within equity CEFs (the focus of this service), there are:
- Diversified Domestic Funds.
- Though broadly diversified with US equities, these funds may
emphasize a theme reflecting the portfolio manager's investment
philosophy. There are growth funds (Jundt Growth Fund), value funds
(Royce Value Trust), market timing funds (Zweig Fund), small cap funds
(Morgan Grenfell Smallcap), blue chip funds (Blue Chip Value), venture
capital funds (Equus II), and many more.
- Sector Funds.
- There are many CEFs focusing on individual sectors. Some focus on
banking and financial stocks (First Financial Fund, Pilgrim Regional
Bankshares), media related stocks (New Age Media Fund, Gabelli Global
Multimedia), gold stocks (ASA Ltd.), environmental stocks (Alliance
Global Environment), health care stocks (H&Q Healthcare Investors,
Global Health Sciences), natural resources (Petroleum & Resources),
and so forth.
- Single Country Funds.
- Many CEFs focus on the securities of a single country. Such funds
include funds investing in India (the India Growth Fund, the India
Fund), Korea (the Korea Fund, the Korea Investment Fund), Thailand
(the Thai Fund, the Thai Capital Fund), Mexico (the Mexico Fund, the
Emerging Mexico Fund), Austria (the Austria Fund), Spain (the Spain
Fund, the Growth Fund of Spain), Germany (the Germany Fund, the Future
Germany Fund), and many other countries.
- Regional Funds.
- Some CEFs focus on regions rather than individual countries. In
addition, to deciding which stocks to invest in, such funds also have
to decide which countries to invest in, and how much to allocate to
each country. Examples include funds focusing on the Latin American
countries (the Latin American Investment Fund, the Latin American
Discovery Fund), European countries (the GT Greater Europe Fund, the
Scudder New Europe Fund), Asian countries (the Scudder New Asia Fund,
the Asia Pacific Fund), and African countries (the New South Africa
Fund, the Morgan Stanley Africa Fund).
Some regional CEFs may have a narrower focus: for example, the
First Iberian Fund focuses on Spain and Portugal; and, the Templeton
China Region Fund and the Jardine Fleming China Region Fund focus
primarily on China, Hong Kong, and Taiwan.
- Emerging Markets.
- Some CEFs focus on emerging markets: the stock markets of
developing nations. Examples include the Templeton Emerging Markets
Fund, the Morgan Stanley Emerging Markets Fund, the Emerging Markets
Infrastructure Fund, and the TCW/DW Emerging Markets Opportunities
Trust Fund.
- Global Funds.
- Some CEFs take a global perspective and invest in the securities
of US and international markets, varying their allocations as market
conditions demand. Examples include the Worldwide Value Fund and the
Clemente Global Growth Fund. Some global funds may invest according to
a specific theme: for example, the Global Small Cap Fund focuses on
small caps, while the Global Privatization Fund invests in companies
that are being or have been recently privatized.
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