After the second quarter, where the average closed-end fund (CEF) was lower by 3.70% on a share price total return basis, the third quarter was another difficult quarter, with the average CEF lower by 6.28% on a share price total return basis, according to Morningstar. Weakness in the global equity markets impacted equity CEFs with the average equity CEF lower by 15.14% on a share price total return basis. It is clear that an aversion to taking credit risk during the quarter negatively impacted many taxable fixed-income CEFs, with the average taxable fixed-income CEF lower by 4.60% on a share price total return basis. Municipal CEFs were a bright spot during the third quarter, with the average municipal CEF higher by 3.29% on a share price total return basis (Morningstar).

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