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