The Month In Closed-End Funds: May 2018

by: Tom Roseen


For the second consecutive month equity CEFs witnessed a plus-side return on average, rising 1.33% on a NAV basis for May.

While for the second month in three their fixed income CEF counterparts posted a positive return, rising 0.76% on average for the month.

For May only 16% of all CEFs traded at a premium to their NAV, with 24% of equity CEFs and 10% of fixed income CEFs trading in premium territory.

Onceagain Energy MLP CEFs (+5.90%) posted the strongest plus-side return of all the CEF classifications.

For the second month in three the municipal debt CEFs macro-group posted a plus-side return on average (+1.58%), with all classifications in the group witnessing gains for May.

For the month 78% of all closed-end funds (CEFs) posted net asset value (NYSE:NAV)-based returns in the black, with 74% of equity CEFs and 81% 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 (+5.90%) remain at the top of the equity charts for the second month in a row, followed by Growth CEFs (+4.49%) and Natural Resources CEFs (+3.01%). For the second month in three municipal bond CEFs posted a plus-side return on average (+1.58%), bettering their domestic taxable bond CEFs (+0.27%) and world income CEFs (-2.10%) counterparts. In this report we highlight May 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.