April's Top Closed-End Funds
The best average returns for closed-end funds in April were to be found in the Corporate High Yield category.
The average return for High Yield funds was 8.62%. The best-performing fund in this category was the
Credit Suisse High Yield Bond Fund
(DHY) - Get Report
returning 16.65%.
However, risks are present, as indicated by the nature of high yield and a slowing economy that will at some stage expose the risk in the corporate bond market. But at this stage, there are good returns to be had in this sector.
Category | Number of funds | 1 Month Average Return |
Corporate - High Yield | 32 | 8.62 |
Corporate - Investment Grade | 1 | 4.48 |
Emerging Market Equity | 4 | 5.60 |
Emerging Market Income | 9 | 6.84 |
Equity Income | 68 | 6.20 |
General Bd - Investment Grade | 12 | 3.19 |
General Mortgage | 11 | 2.67 |
Global Equity | 40 | 6.31 |
Global Income | 34 | 3.47 |
Government Bond | 3 | 2.91 |
The other categories of interest are Emerging Market Equity and Equity Income, which posted solid averages.
They also contained the two best-performing funds:
Western Asset Emerging Markets Fund
(EFL) - Get Report
and
Cornerstone Total Return Fund
(CRF) - Get Report
, returning 25.86% and 25.88%, respectively.
These funds are fairly risky, though -- they exhibit volatility in their returns over time and therefore investors near-term gains are unlikely to be sustainable at these levels.
Still, given that the employment picture and credit situation is going to be much the same for May as it was in April, these funds look attractive.
Below is the entire list of top funds in each category of the TSC Ratings closed-end universe.
Fund | Category | TICKER | 1 Month Return |
Cornerstone Total Return Fund | Equity Income | CRF | 25.88 |
Western Asset Emerg Mkts Fltg | Emerging Market Income | EFL | 25.86 |
Greater China Fund | Non-US Equity | GCH | 20.81 |
First Trust Strategic High Yield | Multi-Sector Bond | FHI | 18.71 |
Pioneer High Income Trust | Global Income | PHT | 17.22 |
Eaton Vance Insured FL Plus Muni | Municipal Single State | EIF | 16.93 |
Credit Suisse High Yield Bond Fund | Corporate - High Yield | DHY | 16.65 |
Cohen&Steers Worldwide Realty Inc | Global Equity | RWF | 15.81 |
Dividend Capital Strategic Gbl Rlty | Growth & Income | DCW | 14.33 |
BlackRock Diversified Inc Strat | Loan Participation | DVF | 13.11 |
First Trust Energy Income&Growth | Sector - Energy/Natural Res | FEN | 11.59 |
Morgan Stanley Emerging Markets | Emerging Market Equity | MSF | 11.19 |
PIMCO Strategic Glob Gov Fund | General Mortgage | RCS | 10.64 |
Evergreen Utilities&High Income | Sector - Utilities | ERH | 10.62 |
Western Asset Premier Bond Fund | General Bd - Investment Grade | WEA | 9.60 |
MFS High Yield Muni Trust | Municipal - High Yield | CMU | 8.71 |
Eaton Vance Insured Muni Bond II | Municipal - National | EIV | 8.59 |
SunAmerica Focused Alpha Growth | Growth - Domestic | FGF | 6.94 |
First Financial Fund | Sector - Financial Services | FF | 6.86 |
BlackRock Enhanced Government | Government Bond | EGF | 6.55 |
Gabelli Global Gold Nat Res&Income | Sector - Precious Metals | GGN | 5.01 |
Rivus Bond Fund | Corporate - Investment Grade | BDF | 4.48 |
H&Q Life Sciences Investors | Sector - Health/Biotechnology | HQL | 3.13 |
Sam Patel, CFA, is the manager of mutual fund research for the TheStreet.com Ratings.
In keeping with TSC's Investment Policy, employees of TheStreet.com Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.
While Patel cannot provide investment advice or recommendations, he appreciates your feedback;
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