The Month In Closed-End Funds: November 2018

by: Tom Roseen

For the first month in three equity CEFs and fixed income CEFs on average witnessed a gain, rising 0.67% and 0.11%, respectively, on a net-asset-value (NAV) basis for November.

Only 12% of all CEFs traded at a premium to their NAV, with 15% of equity CEFs and 10% of fixed income CEFs trading in premium territory.

Emerging Market CEFs (+3.36%) posted the strongest return for the month of all the equity CEF classifications.

None of the domestic taxable fixed income CEF classifications posted positive returns for the month.

For the first month in three the municipal debt CEFs macro-group posted a plus-side return on average (+1.10%), with all classifications in the group witnessing positive returns for November.

Photo Source: REUTERS/Kevin Lamarque. U.S. President Donald Trump, U.S. Secretary of State Mike Pompeo, U.S. President Donald Trump's national security adviser John Bolton and Chinese President Xi Jinping attend a working dinner after the G20 leaders’ summit in Buenos Aires, Argentina December 1, 2018.

For the month 62% of all closed-end funds (CEFs) posted NAV-based returns in the black, with 67% of equity CEFs and 57% of fixed income CEFs chalking up returns in the plus column. The Emerging Markets CEFs classification (+3.36%) outpaced all the other equity classifications, followed by Utility CEFs (+2.96%) and Pacific ex-Japan CEFs (+2.72%). For the second consecutive month domestic taxable bond CEFs posted a loss on average (-0.93%), bettered by world income CEFs (-0.14%) and municipal bond CEFs (+1.10%). None of the domestic taxable fixed income CEF classifications posted plus-side returns for the month, with Corporate Debt BBB-Rated CEFs (Leveraged) (-0.20%) and U.S. Mortgage CEFs (-0.21%) mitigating losses better than the other classifications. In this report we highlight November 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.