The sales for new closed-end funds have been increasing as of late and is now on pace to hit its highest levels since the 2008 recession. According to a report from Cerulli Associates released last Friday, it is double the level from last year.

These new closed end funds have raised about US$10.5 billion from initial public offerings between January and May according to the Boston based research firm. Back in 2012, the funds raised a total of US$11.3 billion in overall sales.

The thirteen closed end funds that have been launched for this year have lifted the industry to a market size worth US$288 billion, which is quite small compared to the US$13 trillion for open ended mutual funds as indicated in Thomson Reuters data.

In 2012, 24 closed ends funds were opened, which is the highest since 2007 where a total of 41 were launched. This was confirmed by Morningstar, the Chicago, IL based research firm.

Closed end funds generate money during the IPO and then invest these funds in a portfolio of securities. These portfolios are then actively managed and trade on exchanges but do not allow new contributions until they are opened.