Closed-End Investment Fund

is a type of investment fund that is characterized by restrictions on issue, selling/buying extra-shares or redemption present shares beyond the scopes of fund formation/termination, except for individual cases defined in the fund’s rules. For this reason, investment objects can be selected from a wide range of assets, including commercial and residential real estate, long-run infrastructure projects, debt or equity securities of issuers that are considered undervalued or risky by market at the moment (venture companies or certain sector companies). The investment objects are often limited to 1-2 projects. The long-term positioning of the investment strategies of closed-end investment funds implies less frequent (usually monthly) public disclosure of fair price of a share and fund's net assets compared to open-end funds, in cases when such information is subject to disclosure. Some close-end investment funds allow the redemption of a share before the fund is terminated and its assets are sold by selling shares to other shareholders or to any other entity if the shares are traded on the stock exchange. The combination of high investment risk and complicated rules results in the frequent formal limits on the investors’ qualification and/or wealth.