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The Month In Closed-End Funds: February 2018

Mar. 07, 2018 3:00 PM ETJOF, STK, RCG, BST, TIPWX, PCM, JFR, PFLEX, PDI, KIO1 Comment
Tom Roseen profile picture
Tom Roseen


  • For the first month in six, equity closed-end funds (CEFs) witnessed a negative return on average, declining 4.65% on a net-asset-value (NAV) basis for February.
  • For the second month in a row, their fixed income CEF counterparts posted a negative return, losing 0.61% on average for the month.
  • For February, only 14% of all CEFs traded at a premium to their NAV, with 18% of equity CEFs and 11% of fixed income CEFs trading in premium territory.
  • Loan Participation CEFs (+0.02%) posted the only plus-side return of all the CEF classifications.
  • Convertible Securities CEFs (-1.82%) jumped to the top of the equity charts for the first month in 34.

For the month, only 8% of all CEFs posted NAV-based returns in the black, with 3% of equity CEFs and 12% of fixed income CEFs chalking up returns in the plus column. A move to less risky assets helped related CEF classifications mitigate losses better than other classifications for February. Convertible Securities CEFs (-1.82%) jumped to the top of the equity charts for the first month in 34. For the first month in 15, domestic taxable bond CEFs posted a negative return on average (-0.52%), mitigating losses better than their world income CEFs (-1.44%) and municipal bond CEFs (-0.58%) counterparts. In this report, we highlight February 2018 CEF performance trends, premiums and discounts, and corporate actions and events.


This article was written by

Tom Roseen profile picture
Tom Roseen is the Head of Research Services, joining from Janus in 1996. He is the editor and an author of Lipper's U.S. Research Studies, FundFlows Insight Reports and FundIndustry Insight Reports. He is involved in fund analysis and research, and contributes to the monthly and quarterly equity and fixed income FundMarket Insight reports, webcasts and podcasts, where he focuses on domestic and world fund performance and attribution. His areas of expertise include closed-end fund analysis, portfolio evaluation, equity and fixed income fund research, fund flows analysis, after-tax performance and Lipper Leaders. Tom has a BS in finance from Metropolitan State College of Denver and a Master's in International Management from the University of Denver.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

Thank you, Tom Roseen. Nice report; though I did not like the results. I am currently slowly developing a position in municipal bond CEFs; though the current rising interest rate environment is certainly creating better entry points for additional purchases.
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