Closed-end fund
A fund with a fixed number of units created for a term: the management company is not obliged to redeem a unit early, and the way out is a sale to another holder.
How to read the number
The form suits indivisible and slow assets — real estate, stakes in businesses — where an obligation to buy back units on any day would make management impossible.
When the metric lies
The sale price of a unit is set by demand rather than by the fund's asset value, and the gap between them persists for months. If the unit trades rarely, exiting before the term ends may not be possible at all.
Also known as: fixed unit fund