Summary: Closed end funds (CEF) bounced back the week ending 3/13/09. A reverse pattern of price movement played out among the fund types versus the previous week. Average price appreciation of 13 CEF fund types was 7.3% while the unweighted average for all 648 CEFs was 6.2%. (CEFs in the aggregate are down 1.9% YTD; Distribution Yield was 12.7%; Discount to NAV was 11.5%). Preferred funds, down 21% the previous week, were up 14.0% for the week as investors’ confidence in the stability of the banking system grew.
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For sake of weekly comparison, SPDR S&P 500 (NYSEARCA:SPY) was up 10.4%. Vanguard Total Bond (NYSEARCA:BND) and iShares Muni fund (NYSEARCA:MUB) were essentially flat, up 0.1% and down 0.3%, respectively. Gold (NYSEARCA:GLD) edged down 1.1%, while oil, as measure by the US Oil ETF, slipped 1.3% as traders await news from OPEC’s weekend gathering.
One of the biggest CEF gainer for the week was the biggest loser last week: DWS RREEF Real Estate Fund (SRQ). SRQ was up 40.4% during the week versus being off 36.5% the previous week. One of this week’s bigger losers was Eaton Vance Insured NY Muni Bond Fund II (NYSEMKT:NYH), down 15.8%. The Chile Fund (CH) mentioned here last week as a beneficiary of strong copper price was up a modest 5.2%. This compared with Material Select Sector SPDR (NYSEARCA:XLB) up 11.1%.