January 5, 2017

The Month in Closed-End Funds: December 2016

by Tom Roseen

REUTERS/Andrew Kelly

  • For the second month in a row equity closed-end funds (CEFs) witnessed a plus-side return on average, rising 1.85% on a net-asset-value (NAV) basis for December, while their fixed income CEF cohorts posted a return in the black for the first month in four, rising 1.54%.
  • For December only 12% of all CEFs traded at a premium to their NAV, with 9% of equity funds and 15% of fixed income funds trading in premium territory. Thomson Reuters Lipper’s World Income CEFs macro-classification witnessed the largest narrowing of discounts for the month—213 basis points (bps) to 8.11%.
  • Pacific ex-Japan CEFs (-1.40%) and Emerging Markets CEFs (-0.22%) weighed on the world equity CEFs macro-group (+0.86%), dragging it to the bottom of the equity universe for the second month running.
  • With investors focusing on value- and energy-related issues, the domestic equity CEFs macro-group stayed at the top of the charts (+2.34%) for the second month in a row.
  • For the first month in four all Lipper municipal debt CEF classifications posted returns in the black, with Other States Municipal Debt CEFs (+1.47%) posting the best return of the group.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: December 2016 here.

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