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Closed-End Funds Calm During Storm Says Shaker Financial Manager

Closed-end funds held up well during the recent wave of market volatility due to their fixed capital structure, said Robert Shaker, Portfolio Manager for Shaker Financial Services.

Closed-end funds held up well during the recent wave of market volatility due to their fixed capital structure, said Robert Shaker, Portfolio Manager for Shaker Financial Services. Shaker added that some opportunities did arise in the wake of the recent selloff and he was able to capitalize on those exacerbated moves through his discount capture strategy. He said investors continue to wrongly believe that fixed income closed-end funds will see a severe selloff if and when interest rates rise. Instead, Shaker said the yield collected by closed-end fund owners will outweigh any negative impact rising rates may have on prices.

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