“Few investment instruments available on the open market are more misunderstood than closed-end funds, perhaps because at only $150 billion the entire CEF universe does not command a great deal of attention. But investors who recognize a few key aspects are in a position to both capitalize on their unique properties, such as attractive dividends, and avoid the traps that can occur in this space.”

Forbes.com 9-29-09
Closed-End Fund Bargains

Key Differentiators

Expertise

15 years of expertise in research and management of closed-end fund portfolios and 25 years of experience with open-end mutual funds for institutional portfolios.

Proprietary Research

A 25-year proprietary historical study commissioned by Matisse to the Securities Analysis Center of the University of Oregon Business School supports the benefits of our buying discounted funds strategy. In addition, in-depth qualitative and quantitative research on closed-end funds is at the core of our true competitive advantage. Our numerical ranking is based on 14 different inputs.

Track Record

The strategy has a proven ability of consistently generating alpha by aptly capturing CEF discounts narrowing and gathering extra income when buying income at discounts.

Why This Strategy?

  • Opportunistic: Matisse research, experience and laser focused on this market, identifies when to take advantage of opportunities continuously offered by the closed-end fund market.
  • Income While We Wait: By purchasing closed-end funds at a deep discount, investors receive higher income than that provided by ETFs or open-end mutual funds. This is particularly helpful in today’s low interest rate environment.
  • High-quality Holdings: Our closed-end funds portfolios are managed by premier institutional managers, the same ones that manage open-end funds and ETFs. These include Pimco, BlackRock, Eaton Vance, Morgan Stanley, Legg Mason, Nuveen, Cohen & Steers, Calamos, Gabelli, Guggenheim and Wells Fargo, among others.
  • Behavioral Finance-based: Approximately 80% of closed-end funds investors are individuals. Behavioral patterns of closed-end funds’ shareholders are predictable and repeatable. Our ability to interpret such patterns empowers us to capitalize on bargains when closed-end funds are temporarily trading at deep discounts to their daily published Net Asset Values (NAV).