by Tom Roseen.
For the month, 80% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 84% of equity CEFs and 78% of fixed income CEFs chalking up returns in the plus column. For the third consecutive month, Lipper’s domestic equity CEFs macro-group (+3.75%) outpaced its two equity-based brethren: world equity CEFs (+1.73%) and mixed-assets CEFs (+0.76%). The Utility CEFs classification (+8.33%, February’s laggard) for the first month in 15 outperformed all other equity classifications, followed by Energy MLP CEFs (+7.47%) and Natural Resources CEFs (+4.99%).
For the second month in three, the municipal bond CEFs macro-group jumped to the top of the charts, posting a 1.00% return on average, followed by domestic taxable fixed income CEFs (+0.23%) and world income CEFs (-0.87%). Fixed income investors were in search of yield, continuing to rotate out of some of the quality issues. They pushed High Yield CEFs (+0.67%) to the top of the domestic taxable fixed income leaderboard for the first month in five, followed by High Yield CEFs (Leveraged) (+0.49%) and Loan Participation CEFs (+0.32%).
For March, the median discount of all CEFs narrowed 97 bps to 4.63%—narrower than the 12-month moving average median discount (8.03%). In this report, we highlight March 2021 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: March 2021 here.
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