July 7, 2020

The Month in Closed-End Funds: June 2020

by Tom Roseen.

For the month, 85% of all closed-end funds (CEFs) posted net asset value (NAV)-based returns in the black, with 69% of equity CEFs and 97% of fixed income CEFs chalking up returns in the plus column. For the second month in a row, Lipper’s world equity CEFs macro-group (+4.00%) outpaced its two equity-based brethren: mixed-assets CEFs (+1.71%) and domestic equity CEFs (+0.20%). For the first month in eight, the Emerging Markets CEFs classification (+5.64%) outperformed all other equity classifications, followed by Convertible Securities CEFs (+4.11%) and Developed Markets CEFs (+3.81%). Energy MLP CEFs (-5.87%, May’s leader) posted the worst returns of the equity universe.

For the second month in a row, world income CEFs remained at the top of the charts, posting a 3.63% return on average, followed by domestic taxable fixed income CEFs (+2.63%) and municipal bond CEFs (+2.40%). Investors continued their search for yield during the month, pushing U.S. Mortgage CEFs (+4.29%) to the top of the domestic taxable fixed income leaderboard for the month, followed by General Bond CEFs (+3.00%) and Loan Participation CEFs (+2.50%).

For June, the median discount of all CEFs widened 31 bps to 9.41%—wider than the 12-month moving average median discount (7.33%). In this report, we highlight June 2020 CEF performance trends, premiums and discounts, and corporate actions and events.


  • For the third month in a row, equity CEFs on average posted positive returns, rising 1.18% on a NAV basis for June, while also for the third month running fixed income CEFs witnessed returns in the black (+2.61%).
  • Only 14% of all CEFs traded at a premium to their NAV, with 15% of equity CEFs and 12% of fixed income CEFs trading in premium territory. The world income CEFs macro-classification witnessed the largest narrowing of discounts for the month among Lipper’s CEF macro-groups—225 basis points (bps) to 5.92%.
  • For Q2, equity CEFs (+18.47%) and fixed income CEFs (+8.48%) posted their strongest quarterly returns since Q2 2009 and Q3 2009, respectively.
  • Emerging Markets CEFs (+5.64%) and Emerging Markets Hard Currency Debt CEFs (+5.17%) posted the strongest plus-side returns in the CEF universe for June.
  • For the second consecutive month, the municipal bond CEFs (+2.40%) macro-group posted returns in the black, with all nine classifications in the group posting plus-side returns for June.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: June 2020 here.

Lipper delivers data on more than 265,000 collective investments in 61 countries. Find out more

Get In Touch


Related Reports

For the month, 92% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based ...

  After suffering significant losses (-4.3%) and massive net outflows ($208.9 ...

U.S. investors pushed equity funds to their strongest quarterly performance since Q4 ...

Levered ETFs have been called out of late by major ETF promoters expressing concern that ...

We have updated our Privacy Statement. Before you continue, please read our new Privacy Statement and familiarize yourself with the terms.×