by Tom Roseen.
For the month, 74% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 69% of equity CEFs and 78% of fixed income CEFs chalking up returns in the plus column. For the second month in a row, Lipper’s mixed-assets CEFs (+0.47%) macro-group outpaced its two equity-based brethren: domestic equity CEFs (+0.37%) and world equity CEFs (-0.62%). The Real Estate CEFs classification (+2.27%) for the first month in 10 outperformed all other equity classifications, followed by Utility CEFs (+2.14%, June’s laggard) and Developed Markets CEFs (+1.29%).
For the first month in four, the municipal bond CEFs macro-group posted the strongest returns in the fixed income universe, posting a 1.11% return on average, followed by domestic taxable fixed income CEFs (+0.33%) and world income CEFs (+0.07%). Fixed income investors became slightly more quality focused during the month. They pushed Corporate Debt BBB-Rated CEFs (Leveraged) (+1.45%) to the top of the domestic taxable fixed income leaderboard for the third month in four, followed by Corporate Debt BBB-Rated CEFs (+1.05%) and U.S. Mortgage CEFs (+1.07%, June’s laggard).
For July, the median discount of all CEFs narrowed 44 basis points (bps) to 1.98%—narrower than the 12-month moving average median discount (5.91%).
Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: July 2021 here.
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