Matisse Discounted Bond CEF Strategy Institutional Class is an open-end mutual fund that employs a fund-of-funds approach, specializing in investments in discounted closed-end bond funds. Its primary objective is to achieve total return with a strong emphasis on providing current income. The strategy is distinguished by its focus on exploiting market inefficiencies specific to closed-end funds, particularly by targeting funds trading at discounts to their net asset values. Portfolio managers use a proprietary quantitative model to select CEFs expected to experience discount narrowing, and they may also seek opportunities arising from corporate actions like tender offers and fund liquidations. With a diversified portfolio—typically holding several dozen CEFs across various bond sectors—the fund seeks to benefit from enhanced yields and potential capital appreciation as market dislocations revert to historical norms. Designed for institutional investors, the fund distributes income monthly and may serve as a complementary fixed income allocation within a broader portfolio, offering exposure to pricing anomalies in the CEF market and an alternative source of yield within the multisector bond space.
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