The Month In Closed-End Funds: June 2018

by: Tom Roseen

For the third consecutive month equity CEFs witnessed a plus-side return on average, however rising only 0.11% on a NAV basis for June.

Meanwhile, for the second month in three their fixed income CEF counterparts posted a negative return, declining 0.01% on average for the month.

For June only 17% of all CEFs traded at a premium to their NAV, with 26% of equity CEFs and 11% of fixed income CEFs trading in premium territory.

Utilities CEFs (+1.80%) for the first month in seven posted the strongest plus-side return of all the CEF classifications.

Pacific ex-Japan CEFs (-5.72%) posted the lowest return of all the CEF classifications.

Photo: REUTERS/Yuri Gripas. Federal Reserve Board Chairman Jerome Powell holds a news conference in Washington.

For the month 65% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 57% of equity CEFs and 71% of fixed income CEFs chalking up returns in the plus column. A move toward income- and growth-oriented assets helped the Utilities CEFs classification (+1.80%) rise to the top of the equity charts for the first month in seven, followed by Growth CEFs (+1.72%) and Real Estate CEFs (+1.54%). For the second consecutive month municipal bond CEFs posted a plus-side return on average (+0.12%), bettering their domestic taxable bond CEFs (+0.09%) and world income CEFs (-1.82%) counterparts. In this report we highlight June 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.