by Tom Roseen.
For the month, 84% of all closed-end funds (CEFs) posted net asset value (NAV)-based returns in the black, with 73% of equity CEFs and 93% of fixed income CEFs chalking up returns in the plus column. For the first month in eight, Lipper’s mixed-assets CEFs (+1.69%) macro-group outpaced its two equity-based brethren: domestic equity CEFs (+1.65%) and world equity CEFs (+0.03%). The Energy MLP CEFs classification (+4.82%) for the third month in row outperformed all other equity classifications, followed by Convertible Securities CEFs (+3.33%, May’s laggard) and Natural Resources CEFs (+2.35%).
For the first month in four, the domestic taxable fixed income CEFs macro-group posted the strongest returns in the fixed income universe, posting a 0.90% return on average, followed by municipal bond CEFs (+0.83%) and world income CEFs (+0.66%). Fixed income investors continued their search for yield. They pushed Corporate Debt BBB-Rated CEFs (+1.43%) to the top of the domestic taxable fixed income leaderboard for the first month in 15, followed by Corporate Debt BBB-Rated CEFs (Leveraged) (+1.35%) and High Yield CEFs (Leveraged) (+1.07%).
For June, the median discount of all CEFs narrowed 38 basis points (bps) to 2.42%—narrower than the 12-month moving average median discount (6.48%). In this report, we highlight June 2021 CEF performance trends, premiums and discounts, and corporate actions and events.