Tom Roseen
September 7, 2022

The Month in Closed-End Funds: August 2022

by Tom Roseen.

For the month, 29% of all closed-end funds (CEFs) posted net-asset-value (NAV)-based returns in the black, with 21% of equity CEFs and 36% of fixed income CEFs chalking up returns in the plus column. For the second month in three, Lipper’s mixed-assets CEFs (-1.49%) macro-group outpaced or mitigated losses better than its two equity-based brethren: domestic equity CEFs (-1.97%) and world equity CEFs (-3.69%). Despite a decline in oil prices and concerns of a global recession, for the second month in a row, the Energy MLP CEFs classification (+1.89%) remained at the top of the equity leaderboard, followed by Natural Resources CEFs (+1.24%) and Convertible Securities CEFs (-1.03%).

For the first month in five, the world income CEFs macro-group outpaced or mitigated losses better than the other macro-groups in the fixed income universe, posting a 0.33% gain on average, followed by domestic taxable bond CEFs (-0.03%) and municipal debt CEFs (-3.71%). Fixed income investors appeared to be more internationally risk seeking during the month, shunning higher quality domestic and tax-exempt issues. For the first month in four, investors pushed Loan Participation CEFs (+1.35%) to the top of the domestic taxable fixed income leaderboard, followed by General Bond CEFs (+0.62%) and U.S. Mortgage CEFs (-0.23%).

For August, the median discount of all CEFs widened 40 basis points (bps) to 6.72%—wider than the 12-month moving average median discount (5.17%). In this report, we highlight August 2022 CEF performance trends, premiums and discounts, and corporate actions and events.

Highlights:

  • For the second month in three, CEFs on average witnessed downside returns, declining 2.23% on a NAV basis for August, while for the seventh month in eight, fixed income CEFs posted returns in the red (-1.29%).
  • Twenty-five percent of all CEFs traded at a premium to their NAV at month end, with 28% of equity CEFs and 22% of fixed income CEFs trading in premium territory. The world equity CEFs macro-classification witnessed the largest narrowing of discounts for the month among Lipper’s CEF macro-groups—91 bps to an 11.30% median discount.
  • Energy MLP CEFs (+1.89%) outshined the other classifications in the equity CEF universe for August.
  • For the first month in four, the Loan Participation CEFs (+1.35%) classification rose to the top of the leaderboard in the fixed income CEF universe for August.
  • For the second month in three, the municipal debt CEFs macro-group posted a negative return (-3.71%, on average), with all nine classifications in the group experiencing downside performance for the month.

Download our Closed-End Funds FundMarket Insight Report: The Month in Closed-End Funds: August 2022 here.

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

Get In Touch

Subscribe

Related Reports

For the Refinitiv Lipper fund-flows week ended September 21, 2022, money market funds was ...

During Refinitiv Lipper's fund-flows week ended September 21, 2022, investors were ...

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

Lipper Alternative Event Driven Funds (AED) are funds that, by prospectus language, seek ...

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