The case for Closed-End Funds in Emerging Markets

23. October 2025

Closed-end funds have long been a niche investment vehicle, but what makes them particularly compelling in today’s emerging markets environment? We discussed this with Oliver Marschner, Senior Portfolio Manager and Head of the Emerging Markets at City of London Investment Management (CLIM). In our interview, he explains how CLIM leverages pricing inefficiencies in closed-end funds to capture alpha, the structural advantages of the closed-end format, and why the firm sees a strong case for emerging markets today. He highlights the role of macroeconomic shifts such as a weakening US dollar, falling interest rates, and the region’s large exposure to AI through leading technology and semiconductor firms.