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June 17, 2011 at 12:18 PM
The RiverNorth Closed-End Fund Index boasted a 0.19% return in May, although positive performance trends across all asset classes that began last June seem to have crested. Equity markets sold off both in the U.S. and internationally, while equity closed-end fund discounts remained relatively stable. Closed-end fund investors continue to clamor for fixed-income funds, narrowing discounts across most fixed-income asset classes, while NAV’s show little movement.
Monthly Sector Roundup
Multiple fixed-income asset classes in the RiverNorth Closed-End Fund Index did well in May, despite equities showing signs of weakness after a two-year rally. And although Non-U.S. Equity closed-end funds prices remain up 24.97% over the past year, they were hit hard in May, dropping 4.42%.
Specialized equity funds, which target investments in natural resource and infrastructure companies, were also down in May, turning in a negative 3.59% performance. And while equity closed-end fund prices had a down month, discounts held steady, with NAV’s chiefly responsible for the recent losses.
Fixed-income closed-end funds did well during the month. Preferred and high yield closed-end funds spiked 4.20% and 3.75% respectively, primarily due to narrowing discounts, with preferred closed-end funds narrowing 2.35% and high yield closed-end funds narrowing 4.54%.
