Closed To New Investors

Closed To New Investors

Mutual funds and hedge funds that do not accept investments from those who are not already existing investors in such funds. While these funds are closed to new investors, in most cases they may allow existing investors to add to their holdings.

A situation where a fund shuts its doors to new investors is likely to arise when a fund has already attracted large inflows from investors over a period of time, usually due to successful investment performance. As a result, it has probably grown to such a size in terms of assets that the fund managers believe continued outperformance may be increasingly difficult.

The decision to close a fund to new investors is not an easy one to make, since the fund is potentially giving up a significant amount of management fee income. However, the very act of turning away new investors may enhance the attraction of the fund to certain investors, ensuring that it can attract substantial inflows if and when it opens up to new investors. The caveat here is that the fund needs to continue to be an outperformer during the period when it is closed to the public.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Closed To New Accounts — When an investment vehicle is no longer accepting new investors, but is still operating for existing investors. This can apply to mutual funds, hedge funds or any professionally managed pooled investment vehicle. In addition, institutional money… …   Investment dictionary

  • Closed-end fund — A closed end fund (or closed ended fund) is a collective investment scheme with a limited number of shares. It is called a closed end fund (CEF) because new shares are rarely issued once the fund has launched, and because shares are not normally… …   Wikipedia

  • Closed Fund — A mutual fund that has been closed either temporarily or permanently to new investors because the investment advisor has determined that the fund s asset base is getting too large to effectively execute its investing style. Generally, current… …   Investment dictionary

  • NEW YORK CITY — NEW YORK CITY, foremost city of the Western Hemisphere and largest urban Jewish community in history; pop. 7,771,730 (1970), est. Jewish pop. 1,836,000 (1968); metropolitan area 11,448,480 (1970), metropolitan area Jewish (1968), 2,381,000… …   Encyclopedia of Judaism

  • New Community Corporation — Year Incorporated 1968 Organizer / Founder Monsignor William J. Linder Headquarters Newark, New Jersey Mission Revitalize low income urban neighborhoods New Community Corporation (NCC) is a not for profit community development corporation based… …   Wikipedia

  • New Hampshire — New Hampshirite /hamp sheuh ruyt /, New Hampshireman. /hamp sheuhr, shear/ 1. a state in the NE United States. 920,610; 9304 sq. mi. (24,100 sq. km). Cap.: Concord. Abbr.: NH (for use with zip code), N.H. 2. one of an American breed of chestnut… …   Universalium

  • New Almaden — U.S. National Register of Historic Places U.S. National Historic Landmark …   Wikipedia

  • New College of the Humanities — Established Incorporated 2010; announced 2011; aims to offer tuition from October 2012 Type Private, for profit, undergraduate Officer in …   Wikipedia

  • New York, New Haven and Hartford Railroad — Reporting mark NH Locale New York, NY to Boston, MA Dates of operation 1872–1968 …   Wikipedia

  • New York Stock Exchange — This article is about the stock exchange. For its parent company, see NYSE Euronext. New York Stock Exchange …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”