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Funds 409: Chasing Closing Funds

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1.
If a fund is going to close, what's the best way to do it?
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Announce a target asset size and close when it reaches that target. Funds that close at preset targets tend to continue to perform well after their closings.
2.
What does the "closed" in "closed funds" mean?
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It is not accepting new investors. Closed funds are those that are barring new investors.
3.
Most funds, after they close to new investors, experience worsened tax efficiency.
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True. When funds close, returns may slow and tax efficiency may worsen.
4.
Some fund companies make plans to close even before they roll out.
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True. This is a strategic move on their parts.
5.
When a closed fund reopens, it might be a sign to investors that _______.
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An asset class is being overlooked and is worth a second look.