October 6, 2021

The Month in Closed-End Funds: September 2021

by Tom Roseen.

For the month, only 35% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 31% of equity CEFs and 38% of fixed income CEFs chalking up returns in the plus column. For the third month in four, Lipper’s mixed-assets CEFs (-0.87%) macro-group mitigated losses better than its two equity-based brethren: domestic equity CEFs (-1.38%) and world equity CEFs (-3.17%). The Energy MLP CEFs classification (+3.26%, August’s laggard) for the first month in three outperformed all other equity classifications, followed by Natural Resources CEFs (+2.84%) and Real Estate CEFs (+0.24%).

For the first month in three, the domestic taxable fixed income CEFs macro-group posted the strongest returns in the fixed income universe, posting a 0.24% return on average, followed by municipal bond CEFs (-1.19%) and world income CEFs (-1.23%). Fixed income investors remained slightly more risk seeking during the month. They pushed Loan Participation CEFs (+0.71%) to the top of the domestic taxable fixed income leaderboard for the first month in eight, followed by General Bond CEFs (+0.35%) and High Yield CEFs (+0.17%).

For September, the median discount of all CEFs widened 82 basis points (bps) to 2.40%—still narrower than the 12-month moving average median discount (4.75%). In this report, we highlight September 2021 CEF performance trends, premiums and discounts, and corporate actions and events.

Highlights

  • For the first month in 11, equity CEFs on average suffered losses, declining 1.64% on a NAV basis for September, while for the first month seven fixed income CEFs posted returns in the red (-0.39%).
  • Thirty-three percent of all CEFs traded at a premium to their NAV, with 28% of equity CEFs and 36% of fixed income CEFs trading in premium territory.
  • Energy MLP CEFs (+3.26%) for the first month in three posted the strongest one-month returns of the equity classifications in the CEF universe for September.
  • For the first month in eight, the Loan Participation CEFs (+0.71%) classification posted the strongest plus-side returns in the domestic taxable fixed income CEF macro-group for September.
  • The municipal bond CEF macro-group (-1.19%) posted a loss for the second month in row, with all nine classifications experiencing negative returns.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: September 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

Lipper Natural Resources Funds suffered $1.3 billion in outflows over the past week, ...

USD assets were the flavour of the month, whether cash, equity, or fixed income, as ...

In this issue of Refinitiv Lipper’s Global Mutual Funds & Exchange-Traded ...

In this issue of Refinitiv Lipper’s Swiss Mutual Funds & Exchange-Traded Products ...

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