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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.)
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