Kover said expanding ownership among closed-end funds improves liquidity, which has helped closed-end funds quickly rebound after dramatic sell-offs over the past several years.
Loughlin believes the growth of UITs that specialize in closed-end funds will likely reduce the free float and liquidity of these funds. On the flip side, though, he said growing demand for closed-end funds will likely boost market values and reduce discounts.
--Eric Uhlfelder