CEF Chart for 2012: The LoanPartFnds and WrldEqFnds led the way by advancing an annualized 14.7% and 14.0% growth for the year. The total return was 22.8% and 19.6% (adjusting for the December 31, 2012). The total return was USMrtgBndFnds for 20.8% (12.3% price appreciation and 8.4% adjusted yield). Laggards were OtherFnds advanced 3.7% (12.8% total return) and ConvtSecFnds advanced 5.3% (13.7% total return).
Lower Rates: Total-share-prices to total-NAVs-per share (total share price appreciation and yield to total NAV per share) were evident for PrefStkFnds, InvGrdBndFnds, SingleStMuniFnds, HiYldBndFnds, NatlMuniBndFnds and ConvtSecFnds was negative. (Negative may be implied as favorable, however, fixed-income may be peaking). Other fixed-income interest rates may be at a "distribution high."
Equity Markets: Equity markets, such as WrldEqFnds, SpecEqFnds and GenEqFnds, may have a "leg-up" on bond funds. GenEqFnds are at an 11.7% discount (premium/discount) with aggregate CEF's discount 2.7% (on a segment bases). Equity yield was 8.2% from the December 31, 2012 basis.
Tax Benefits: Without serious "biting" into to long-term dividend gains (with 15% going up to 20% for threshold amounts - the same as long-term capital gains) the tax-benefits could be clearer for investors. Dividends, as opposed to interest rates on taxable bonds funds base on the top-tax bracket, might seem to be a more appropriate place to invest funds.
CEF Equity Income: The following stocks (listed below) are under the "severest discounts" to date. With general equity yields about 8.2%, it might seem like a place to invest a portion of your money.
Disclosure: I am long ADX.