The largest upgrades to the TheStreet.com closed-end fund universe for the month of May came predominantly from global equity, municipal state and energy/natural resources.

The pick of the list below are represented by the top five funds -- two global equity funds and one municipal fund from BlackRock -- and two municipal funds from Nuveen Investments.

If energy and natural resources is more your sector then there are three to choose from:

ING Risk Managed Nat Resources

(IRR) - Get Report

,

Tortoise North American Energy

(TYN)

and the

Tortoise Energy Capital Fund

(TYY)

.

Whether the current run-up in oil prices is a function of easy money combined with actions of hedge funds or the result of supply and demand imbalances or both will be made clearer if the

Federal Reserve

is forced to raise rates later this year.

If you're of the view that this is a supply and demand issue that won't be corrected in the near term, energy (especially oil) is the place to be. If you think oil prices are a result of lax monetary policy and higher rates will bring commodity prices down, energy may not be for you.

If rates are set to rise, you may also want to stay out of the way of municipals as their prices will fall in sympathy with rate rises.

Fund Name

Ticker

Current Rating

Previous Rating

Category

Defined Strategy Fund

DSF

D

C+

Equity Income

Eaton Vance PA Muni Inc Tr

EVP

D-

C

Municipal Single State

BlackRock MD Muni Bond Trust

BZM

C+

A-

Municipal Single State

BlackRock CA Muni Bond Trust

BZA

B-

A

Municipal Single State

BlackRock S&P Qual Rkg Glob Eq Mgd

BQY

B-

A

Global Equity

In terms of the largest downgrades, municipal funds focused on Maryland, California and Pennsylvania were downgraded during the month (as opposed to the municipals that received upgrades, which invested in Vermont and Connecticut).

Fund Name

Ticker

Current Rating

Previous Rating

Category

Tortoise North American Energy

TYN

B

D-

Sector - Energy/Natural Res

BlackRock Enhanced Government

EGF

B-

D

Government Bond

Tortoise Energy Capital

TYY

C

E

Sector - Energy/Natural Res

Claymore Raymond James SB1 Ety Fd

RYJ

C

E+

Equity Income

ING Risk Managed Nat Resources Fund

IRR

B-

D+

Sector - Energy/Natural Res

BlackRock World Investment Trust

BWC

A-

C

Global Equity

BlackRock Global Opportunities Eq

BOE

B

C-

Global Equity

Nuveen CT Div Adv Muni

NFC

B+

C

Municipal Single State

Nuveen CT Div Adv Muni Fund 2

NGK

A

C+

Municipal Single State

BlackRock VA Muni Bond Trust

BHV

A

B-

Municipal Single State

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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