CEFs Advance in Shortened Week, Though Less Than S&P 500

All closed end (CEF) fund types advanced the week ending 4/9/09 in an undulating, holiday-shortened week. Average price appreciation of 13 CEF fund types was 1.6%, while the unweighted average for all 646 CEFs was up 1.4%. (On an unweighted aggregate basis, CEFs are up 7.4% YTD; Distribution Yield is 10.6%; Discount to NAV narrowed to 8.6%). Riskier fund types continued to be favored. This is consistent with an 8.0% drop in the CBOE Volatility Index (VIX) and CEF muni fund types moving to the back of the bus. Preferred fund type, up 3.4%, benefited from the surge in bank stocks as a preponderance of preferred stocks are bank related. Special equity funds were up 2.9% and benefited from the surge in the real estate sector and Russian funds.

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For sake of weekly comparison, SPDR S&P 500 (SPY) was up 1.8%. Vanguard Total Bond (BND) and iShares Muni fund (MUB) were up modestly, 0.7% and up 0.3%, respectively. Gold (GLD) dropped an additional 1.5%, while oil, as measure by the US Oil ETF (USO), fell by 0.8%. Commercial real estate, as measured by Vanguard Real Estate Investment Trust ETF (VNQ), tacked on an additional 5.3%, after spurting 17.4% the previous week. Additional oversubscribed REIT equity offerings, to pay down debt, again rattled the shorts and has lent encouragement banks will be able to do the same.

Templeton Russia and East European Fund Inc. (TRF) was one of the biggest CEF gainers for the week, up 23.7%. One of this week’s bigger losers, Van Kampen Massachusetts Value Municipal Income Trust (VMV), was down 8.0%.

Disclosure: Author Owns GCV, GLD, USO and SPY.

Comments

[49er:]

Thanks for these weekly CEF reviews. They are useful and well done.

Apr 14 09:03 AM

[49er:]

I appreciate these weekly CEF roundups. They are useful and well done.

Apr 14 09:04 AM

[j'adoube:]

You seem doubly appreciative.

Apr 14 02:43 PM