Between December 2003 and December 2005, assets of closed-end funds increased 29%.

Most of this growth was in the creation of new equity funds.

For a number of years, most closed-end funds were focused on the bond market.

In 2003, assets of equity funds made up only 24% of the assets of closed-end funds. This increased to 32% in 2004 and 38% in 2005.

The larger market for equity closed-end funds represented, on the one hand, greater interest in specialized portfolios such as foreign equities, real estate investment trusts, or less liquid stocks, and on the other, a general improvement in the equity market as the nation recovered from the recession of 2001.