Third Quarter 2018 Overview
The average closed-end fund (CEF) managed a slight gain for the third quarter—up 0.51%, but remains lower on average by 2.12% year-to-date (YTD). Equity CEFs led the way in the quarter with an average gain of 1.52%. U.S. general equity funds were particularly strong, with the average fund up 4.07% for the quarter as they benefitted from the 7.71% total return gain the S&P 500 Index posted during the quarter. Taxable fixed income CEFs were up on average 1.30% during the quarter. Municipal CEFs continue to be hurt by the rise in both shortand long-term interest rates and finished the quarter with an average loss of 1.30%. The average municipal CEF is now lower by 4.84% YTD. Average discounts to net asset value (NAV) widened during the quarter to 6.57% from the 5.93% average which they had ended the second quarter with. They remain wider than the 4.84% discount the average CEF had as of the end of 2017. (Source: Morningstar and Bloomberg. All data is share price total return.)
Posted on Thursday, October 18, 2018 @ 1:24 PM
Posts are 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.