Closed-End Fund Share Pricing

Closed-end funds have a fixed number of shares outstanding. After their initial public offering, shares are traded on an exchange. The shares trade at prices that bear relation to but are not based on the value of the fundís underlying assets (Net Asset Value/NAV). The price of a closed-end fund may include a premium to (higher) or at a discount to (lower) its NAV. Transactions in shares of closed-end funds are based on their market price, which is influenced by market supply and demand. The transaction price will also include a customary brokerage charge or commission.