Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Jeff Margolin
Closed-End Fund Analyst
Click for Bio

Follow Jeff on LinkedIn
Ryan Issakainen
ETF Strategist
Click for Bio

Follow Ryan on LinkedIn

  Third Quarter 2016 CEF Review
Posted Under: CEFs

The third quarter was another solid period for diversified closed-end fund ("CEF") investors. The average CEF was up 2.37% for the quarter and is now up 13.01% year-to-date. Equity CEFs were positive on average by 3.79%, taxable fixed-income CEFs were up on average 5.04%; municipal CEFs, on the other hand, were lower on average by -0.84% for the quarter. (Source: Morningstar. All data is share price total return data). As I mentioned last quarter, after grinding through a challenging 2015 (particularly the back half of the year), diversified CEF investors have been rewarded with very strong total returns year-to-date (YTD). Many of the factors which benefited several categories of the CEF marketplace the first half of 2016 were also present during the third quarter including: higher equity prices (particularly U.S. equities), continued "Plow Horse" (as our Economics Team phrases it) economic growth in the U.S. economy (which helps to create a positive backdrop for many credit-sensitive CEFs), and high distributions and attractive discounts to net asset values (NAVs). This was particularly true for equity and credit-sensitive categories, which also helped to attract buyers to the secondary market during the quarter.

Click here to continue reading.

Posted on Thursday, November 3, 2016 @ 11:19 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Emerging Market Local Currency Review - 3rd Quarter 2016
Senior Loan & High Yield Quarterly Review - 3rd Quarter 2016
Alternatives Update 3rd Quarter 2016
Broad Commodity ETFs Gain Traction in Q2: Will the Trend Continue?
Alternatives Update 2nd Quarter 2016
Municipal Update 2nd Quarter 2016
U.S. Investment Grade Credit Investor Update - 2nd Quarter 2016
Emerging Market Local Currency Review - 2nd Quarter 2016
Second Quarter 2016 CEF Review
Senior Loan & High Yield Review – 2nd Quarter 2016
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.