February Yields Mostly Positive Results for Closed-End Funds

The closed-end fund municipal market turned positive after a three-month skid. The average municipal closed-end fund returned 1.36% in February after dropping 11% over the previous three months. Even with a rebound, municipal closed-end funds are still yielding 1% more than they were three months ago. At a 7% total distribution yield, the closed-end fund market appears to have found buyers again.

February New IPOS:

• Nuveen launched the Nuveen Energy MLP Total Return Fund (JMF), which will raise as much as $509 million subject to a greenshoe. The fund seeks a tax-advantaged total return by investing in MLP’s in the energy sector.

• Apollo Global Management launched the Apollo Senior Floating Rate Fund (AFT), which will raise $300 million. The fund will primarily invest in senior floating rate securities with the objective of current income and capital preservation.

In the overall closed-end fund market, the RiverNorth Closed-End Fund Index was up 2.39% in February and up 3.42% year-to-date through Feb. 28th. Discounts on the RiverNorth Closed-End Fund Index have narrowed 0.21% in February and currently stand at 3.06% on average at the end of February.