by Tom Roseen.
For the month, 98% of all CEFs posted net asset value (NAV)-based returns in the black, with 98% of equity closed-end funds (CEFs) and 98% of fixed income CEFs chalking up returns in the plus column. For the second month running, Lipper’s world equity CEFs macro-group (+5.68%) outpaced its two equity-based brethren: mixed-assets CEFs (+3.68%) and domestic equity CEFs (+3.20%). The Emerging Markets CEFs classification (+6.61%) for the first month in six outperformed all other equity classifications, followed by Convertible Securities CEFs (+6.21%) and Developed Markets CEFs (+5.61%). Once again, Real Estate CEFs (+1.42%) posted the weakest returns in the equity universe.
For the second month in a row, world income CEFs remained at the top of the charts, posting a 3.44% return on average, followed by domestic taxable fixed income CEFs (+2.05%) and municipal bond CEFs (+1.44%). Fixed income investors were generally more risk seeking and in search of yield during the month, pushing General Bond CEFs (+2.20%) to the top of the domestic taxable fixed income leaderboard for the second month in three, followed by High Yield CEFs (Leveraged) (+2.13%) and Loan Participation CEFs (+2.02%).
For December, the median discount of all CEFs narrowed 50 basis points (bps) to 6.91%—narrower than the 12-month moving average median discount (8.47%). In this report, we highlight November 2020 CEF performance trends, premiums and discounts, and corporate actions and events.
Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: December 2020 here.
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