Following the third quarter, when the average closed-end fund (CEF) was up 3.27%, CEFs continued their positive momentum and increased—on average—by 12.75% during the fourth quarter. (https://www.ftportfolios.com/Commentary/Insights/2020/10/26/third-quarter-2020) The significant rally many CEFs had in the second, third and fourth quarters was enough to bring the average CEF to a positive total return of 2.66% for all of 2020. While this might not seem all that impressive, when you consider the average CEF was lower by 23.46% at the end of the first quarter as a result of the initial shutdown of the global economy, the roughly 3% average total return for 2020 becomes much more impressive. (Source: Morningstar. All performance is based on share price total return).

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