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Morningstar, Inc. Commentaries


Year in Review: Taxable-Bond Closed-End Funds

Jan 17, 2014
Click here to access Year in Review: Taxable-Bond Closed-End Funds

The last two CEF Weekly articles provided an overview of the equity and municipalclosed-end fund groups and their performances during 2013. It was a good year for equity-focused CEFs, as the S&P 500 returned 32% and the average equity-focused CEF posted a net asset value gain of 17% (including distributions) and a share price gain of 18%. Morningstar fund analyst Steven Pikelny discussed the usually steady municipal-bond space, which was hit with the double whammy of rising rates and credit concerns over cash-strapped municipal issuers like Detroit and Puerto Rico. Exchange-traded fund  iShares National AMT-Free Municipal Bond (MUB), for example, dropped 3.0% in 2013 following impressive gains in 2011 and 2012. Municipal CEFs fared even worse, as the average fund's NAV declined 6.8% and fell 13.0% on a share price basis.



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