September 8, 2021

The Month in Closed-End Funds: August 2021

by Tom Roseen.

For the month, 70% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 86% of equity CEFs and 59% of fixed income CEFs chalking up returns in the plus column. For the first month in eight, Lipper’s world equity CEFs (+2.03%) macro-group outpaced its two equity-based brethren: domestic equity CEFs (+1.40%) and mixed-assets CEFs (+0.90%). The Developed Markets CEFs classification (+2.85%) for the first month in 22 outperformed all other equity classifications, followed by Utility CEFs (+2.30%) and Diversified Equity CEFs (+2.15%).

For the first month in three, the world income CEFs macro-group posted the strongest returns in the fixed income universe, posting a 1.43% return on average, followed by domestic taxable fixed income CEFs (+0.74%) and municipal bond CEFs (-0.62%). Fixed income investors became slightly more risk seeking during the month. They pushed High Yield CEFs (Leveraged) (+0.89%) to the top of the domestic taxable fixed income leaderboard for the first month in six, followed by Loan Participation CEFs (+0.84%) and General Bond CEFs (+0.79%).

For August, the median discount of all CEFs narrowed 40 bps to 1.58%—narrower than the 12-month moving average median discount (5.33%). In this report, we highlight August 2021 CEF performance trends, premiums and discounts, and corporate actions and events.

Highlights

  • For the tenth month running, equity CEFs on average posted positive returns, rising 1.43% on a NAV basis for August, while for the sixth consecutive month fixed income CEFs posted plus-side returns (+0.29%).
  • Thirty-seven percent of all CEFs traded at a premium to their NAV, with 32% of equity CEFs and 41% of fixed income CEFs trading in premium territory. The national municipal CEFs macro-classification witnessed the second largest narrowing of discounts for the month among Lipper’s CEF macro-groups—117 basis points (bps) to a 0.44% medium premium.
  • Developed Markets CEFs (+2.85%) for the first month in 22 posted the strongest one-month returns of the equity classifications in the CEF universe for August.
  • For the first month in six, the High Yield CEFs (Leveraged) (+0.89%) classification posted the strongest plus-side returns in the domestic taxable fixed income CEF macro-group for August.
  • The municipal bond CEF macro-group (-0.62%) posted a loss for the first month in six, with all nine classifications experiencing negative returns.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: August 2021 here.

Refinitiv Lipper delivers data on more than 330,000 collective investments in 113 countries. Find out more.

Get In Touch

Subscribe

Related Reports

This year has seen alternative energy assets go up like a rocket and down like a ...

Despite heightened COVID-19 caseloads and hospitalizations in the U.S., growing ...

For the month, 74% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based ...

Tax-exempt municipal bond funds (including both conventional funds and ETFs) have ...

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