December 6, 2018

The Month in Closed-End Funds: November 2018

by Tom Roseen.

For the month 62% of all CEFs posted NAV-based returns in the black, with 67% of equity CEFs and 57% of fixed income CEFs chalking up returns in the plus column. The Emerging Markets CEFs classification (+3.36%) outpaced all the other equity classifications, followed by Utility CEFs (+2.96%) and Pacific ex-Japan CEFs (+2.72%). For the second consecutive month domestic taxable bond CEFs posted a loss on average (-0.93%), bettered by world income CEFs (-0.14%) and municipal bond CEFs (+1.10%). None of the domestic taxable fixed income CEF classifications posted plus-side returns for the month, with Corporate Debt BBB-Rated CEFs (Leveraged) (-0.20%) and U.S. Mortgage CEFs (-0.21%) mitigating losses better than the other classifications. In this report we highlight November 2018 CEF performance trends, premiums and discounts, and corporate actions and events.

Highlights:

  • For the first month in three equity closed-end funds (CEFs) and fixed income CEFs on average witnessed a gain, rising 0.67% and 0.11%, respectively, on a net-asset-value (NAV) basis for November.
  • Only 12% of all CEFs traded at a premium to their NAV, with 15% of equity CEFs and 10% of fixed income CEFs trading in premium territory.
  • Emerging Market CEFs (+3.36%) posted the strongest return for the month of all the equity CEF classifications.
  • None of the domestic taxable fixed income CEF classifications posted positive returns for the month.
  • For the first month in three the municipal debt CEFs macro-group posted a plus-side return on average (+1.10%), with all classifications in the group witnessing positive returns for November.

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

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