Unlocking International Diversification Benefits Through Closed-End Fund Discounts
The article discusses how closed-end funds are priced and why they sometimes trade at a discount. It explores different theories and evidence to explain this phenomenon, including using closed-end fund discounts as an indicator of investor sentiment. The researchers also look at the benefits of investing in closed-end country funds for international diversification. Overall, the findings suggest that closed-end fund discounts can be influenced by various factors and may not always reflect the true value of the funds.