The Financial & Risk business of Thomson Reuters is now Refinitiv

All names and marks owned by Thomson Reuters, including "Thomson", "Reuters" and the Kinesis logo are used under license from Thomson Reuters and its affiliated companies.

June 5, 2018

The Month in Closed-End Funds: May 2018

by Tom Roseen.

For the month 78% of all closed-end funds (CEFs) posted net asset value (NAV)-based returns in the black, with 74% of equity CEFs and 81% of fixed income CEFs chalking up returns in the plus column. A move toward out-of-favor energy-related assets helped the Energy MLP CEFs classification (+5.90%) remain at the top of the equity charts for the second month in a row, followed by Growth CEFs (+4.49%) and Natural Resources CEFs (+3.01%). For the second month in three municipal bond CEFs posted a plus-side return on average (+1.58%), bettering their domestic taxable bond CEFs (+0.27%) and world income CEFs (-2.10%) counterparts. In this report we highlight May 2018 CEF performance trends, premiums and discounts, and corporate actions and events.

Highlights:

  • For the second consecutive month equity CEFs witnessed a plus-side return on average, rising 1.33% on a NAV basis for May, while for the second month in three their fixed income CEF counterparts posted a positive return, rising 0.76% on average for the month.
  • For May only 16% of all CEFs traded at a premium to their NAV, with 24% of equity CEFs and 10% of fixed income CEFs trading in premium territory. World Income CEFs witnessed the largest narrowing of discounts for the month among Thomson Reuters Lipper’s CEF macro-groups—156 basis points (bps) to 6.40%.
  • Once again Energy MLP CEFs (+5.90%) posted the strongest plus-side return of all the CEF classifications.
  • Emerging Markets Debt CEFs (-4.30%) posted the lowest return of all the CEF classifications.
  • For the second month in three the municipal debt CEFs macro-group posted a plus-side return on average (+1.58%), with all classifications in the group witnessing gains for May.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: May 2018 here.

Thomson Reuters Lipper delivers data on more than 265,000 collective investments in 61 countries. Find out more.

Get In Touch

Subscribe

Related Reports

  Fixed income funds posted a positive return of 0.38% on average for Q3 2018 ...

For the month only 46% of all closed-end funds (CEFs) posted net asset value (NAV)-based ...

U.S. investors embraced domestic issues on strong corporate profits and economic ...

For the month 80% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based ...