UBS Wealth Management Research (WMR) provides research on more than 100 taxable and municipal closed-end funds (CEFs). This body of research includes investment recommendations and current market trends on CEFs. Like a traditional mutual fund, a CEF is an investment company that pools the assets of its investors and uses professional managers to invest the money to meet clearly identified objectives, such as current income or capital appreciation. However, unlike a mutual fund, a CEF issues a fixed number of shares through an IPO. Investors who wish to buy or sell fund shares do not purchase or redeem them directly from the fund—rather, they buy or sell fund shares in a process identical to the purchase or sale of any other listed stock. As a result, the fund can and does either trade at a premium or discount to its net asset value (NAV). Closed-End Fund Ratings System Ratings for closed-end funds are primarily based on our opinion regarding the stability of dividends and capital. Other factors include valuations and the impact of interest rates. UBS Closed-End Fund Ratings: Definitions | | UBS Financial Services Rating | Definition and Criteria | | Buy | Higher stability of principal and higher stability of dividends | Hold | Potential loss of principal, lower degree of dividend stability | Sell | High potential for loss of principal and dividend risk | |