The Month In Closed-End Funds: April 2018

by: Tom Roseen

For the first month in three equity closed-end funds (CEFs) witnessed a plus-side return on average, rising 1.66% on a net-asset-value (NAV) basis for April.

For the third month in four their fixed income CEF counterparts posted a negative return, declining 0.15% on average for the month.

For April only 15% of all CEFs traded at a premium to their NAV, with 20% of equity CEFs and 10% of fixed income CEFs trading in premium territory.

Energy MLP CEFs (+9.06%) posted the strongest plus-side return of all the CEF classifications.

For the third month in four the municipal debt CEFs macro-group posted a negative return on average (-0.52%), with all classifications in the group witnessing losses for April.

For the month only 55% of all CEFs posted NAV-based returns in the black, with 76% of equity CEFs and 40% of fixed income CEFs chalking up returns in the plus column. A move toward out-of-favor energy-related assets helped the Energy MLP CEFs classification (+9.06%, March’s laggard) jump to the top of the equity charts for the first month in four, followed by Natural Resources CEFs (+6.90%) and Utility CEFs (+2.55%). For the second consecutive month domestic taxable bond CEFs posted a plus-side return on average (+0.34%), bettering their world income CEFs (-0.93%) and municipal bond CEFs (-0.52%) counterparts. In this report we highlight April 2018 CEF performance trends, premiums and discounts, and corporate actions and events.

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.