Nuveen: Closed-End Muni Bond Funds Set Up for Another Strong Year

Closed-end funds offer potentially higher distributions than traditional income investments because of their unique closed structure, said Anne Kritzmire, Managing Director of Closed-End Funds for Nuveen Asset Management. Kritzmire added that they are also less sensitive to rising rates. She said she expects closed-end municipal bond funds to have another strong year as investors seek safe, steady yield in the low yield environment. She said high yield, real asset strategies or equity closed-end funds may help hedge the risks of inflation. Finally, Kritzmire said some closed-end funds provide access to specialized asset classes, including alternatives, which can further enhance portfolio diversification.