First Quarter 2017 CEF Review

First Quarter 2017 Overview

Following a calendar year when the average closed-end fund (CEF) was up 8.59%, many categories of the CEF marketplace continued their positive momentum in 2017. Indeed, the average CEF was up a solid 5.17% during the first quarter of 2017. Positive gains were broad based during the first three months of the year as equity CEFs were up on average 8.35%, taxable fixed-income CEFs up 4.64% and municipal CEFs up 2.34%. I believe rising global equity prices, solid fundamentals for credit sensitive asset classes (i.e. defaults below historical averages), fairly steady long-term interest rates, demand for income-oriented asset classes and discount narrowing all helped contribute to the broad-based positive total returns experienced by many categories in the first quarter. (Source: Morningstar. All data is share price total return.)

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Posted on Friday, April 28, 2017 @ 9:56 AM

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.