FUNDMARKET INSIGHT REPORT

THOMSON REUTERS LIPPER RESEARCH SERIES

MAY 31, 2017

The Month in Closed-End Funds: May 2017

PERFORMANCE
The Month in Closed-End Funds: May 2017
For the seventh consecutive month equity CEFs on average witnessed a plus-side
return on a NAV basis andfor the sixth month in a rowon a market basis (+0.22% For the seventh month in a row equity closed-end
funds (CEFs) witnessed a plus-side return on average,
and +0.68%, respectively). Also for the sixth month in a row their fixed income CEF rising 0.22% on a net-asset-value (NAV) basis for May,
counterparts, rising 1.43%, chalked up a return in the black on a NAV basis; for the while their fixed income CEF cohorts posted a return in
second consecutive month they also posted a plus-side return on a market basis, the black for the sixth month running, rising 1.43%.
returning 1.28%. Most of the U.S. broad-based indices managed to finish the month on For May 21% of all CEFs traded at a premium to their
the plus-side, despite the political drama occurring in our nations capital; the NASDAQ NAV, with 22% of equity CEFs and 21% of fixed income
Composite posted the strongest return (+2.50%), and the Russell 2000 Price Only CEFs trading in premium territory. Thomson Reuters
Lippers World Income CEFs macro-classification
Index posted the only negative return (-2.16%). witnessed the largest narrowing of discount for the
month63 basis points (bps) to 5.74%.
Equity markets rallied at the beginning of May as investors learned of a better-than-
expected nonfarm payrolls report for April and with pundits already pricing in an Energy MLP CEFs (-6.55%) and Natural Resources
CEFs (-4.08%) posted the lowest returns in the equity
Emmanuel Macron win in the then-upcoming final round of the French presidential universe and weighed on the domestic equity CEFs
election. The Labor Department reported the U.S. created 211,000 new jobs for April, macro-group (-0.80%).
beating the 190,000 expected by analysts. Investors embraced growth and tech
With investors focusing on international opportunities
playsbidding up energy, telecom, and materials issuesbut remained focused on during the month, Pacific ex-Japan CEFs rose to the
political risks from both Washington and Paris. European stocks finished at a 21-month top of the charts (+3.65%) for the first month in four.
high ahead of the French election, while Chinese stocks tumbled early in the month For the sixth consecutive month all Lipper municipal
on worries that the countrys clampdown on speculators and borrowing might curb debt CEF classifications posted returns in the black,
demand for metals. with New Jersey Municipal Debt CEFs (+2.24%) and
General & Insured Municipal Debt CEFs (Leveraged)
While the Dow Jones Industrial Average and the S&P 500 Index both suffered their first (+2.12%) posting the best returns of the group.
weekly decline in nearly a month as investors reviewed the political environment when
President Donald Trump fired FBI director James Comey, the NASDAQ Composite
witnessed its fourth straight week of gains as investors learned that April retail sales
rose 0.4% (coming in slightly worse than the 0.5% analysts had expected). Investors
still had hopes that OPEC would extend its production cuts at its then-upcoming
meeting.
All the major U.S. indices suffered losses the following week, sparked by mid-week
political drama from the White House after a Washington Post article indicated that
a current White House official was a person of interest in the Russia probe. Despite
investors cheering the fundamental strength of the Q1 2017 earnings, some investors
continued to question Trumps ability to deliver on his economic stimulus package amid
the ongoing investigations.
Toward month-end investors pushed the S&P 500 and the NASDAQ into record
territory once again after learning that the U.S. GDP was revised up to 1.2% from
0.7%, in spite of hearing that durable goods orders declined to a five-month low in
April. Oil prices took it on the chin after OPEC and other oil producers didnt make
broad, sweeping cuts to global crude oil production. Stocks finished the month with a
whimper as banks warned of a trading slump, dragging blue chips into the red even as
the Chicago PMI rose to a two-and-half-year high for May. A 2.3% decline in existing Authored by:
home sales for April also weighed on the market. While the Federal Reserves Beige TOM ROSEEN
Book indicated the economy is still growing at a moderate pace, which still supports HEAD OF RESEARCH SERVICES
THOMSON REUTERS LIPPER
a June rate hike, some pundits questioned whether the recent trend of soft economic
data would support two additional rate hikes in 2017.

1
 FUNDMARKET INSIGHT REPORT MAY 2017

For the month of May Treasury yields rose at the short-

end of the curve as investors anticipated a June rate
hike. Treasury yields of less than two years witnessed
CLOSED-END FUNDS LAB
increases for the month ranging between 1 bp and 18
bps, while longer-dated yields declined, with the 30-year
yield declining the most9 bps to 2.87%. TABLE 1 CURRENT-MONTH PERFORMANCE, P&D, P&D SHIFTS (% OF
UNIVERSE)
For May the dollar weakened against the euro (-2.95%)
and the yen (-1.69%) but gained against the pound NAV
(+0.09%). Commodities prices were mixed for the RETURNS PREMIUM/DISCOUNT NOW TRADING AT
month, with near-month gold prices rising 0.47% to POSITIVE BETTER WORSE PREMIUM DISCOUNT
close May at $1,272.00/ounce and with front-month Equity Funds 66 58 36 22 76
crude oil prices falling 2.05% to close the month at
Bond Funds 97 34 64 21 78
$48.32/barrel.
ALL CEFs 83 44 52 21 77
For the month 83% of all CEFs posted NAV-based
returns in the black, with 66% of equity CEFs and 97%
of fixed income CEFs chalking up returns in the plus
column. For the third consecutive month Lippers world
equity CEFs macro-group (+2.20%) outpaced its two
equity-based brethren: mixed-asset CEFs (+0.80%) and TABLE 2 AVERAGE NAV RETURNS, SELECTED PERIODS (%)
domestic equity CEFs (-0.80%).
As a result of the strong preference for international
MAY YTD 3-MONTH CALENDAR-2016
issues, the Pacific ex-Japan CEFs classification (+3.65%)
jumped to the top of the equity charts for the first month Equity Funds 0.22 7.18 2.27 11.72
in four. It was followed by Developed Markets CEFs Bond Funds 1.43 5.07 2.71 6.66
(+3.34%) and Growth CEFs (+3.08%). Domestic equity ALL CEFs 0.90 6.00 2.52 8.90
CEFs (-0.80%) were pulled down by Energy MLP CEFs
(-6.55%) and Natural Resources CEFs (-4.08%) as oil
prices and energy stocks were hurt by data showing U.S.
active rig counts had increased. For the remaining equity TABLE 3 NUMBER OF IPOs, SELECTED 12-MONTH PERIODS
classifications returns ranged from minus 0.34% (Sector
Equity CEFs) to 2.69% (Utility CEFs).
The four top-performing individual equity CEFs MAY 2017 CALENDAR-2016
were housed in Lippers Developed Markets CEFs
ALL CEFs 23 18
classification. At the top of the charts was New Germany
Fund, Inc. (GF), rising 6.94% on a NAV basis and traded
at a 10.25% discount on May 31), followed by New
Ireland Fund, Inc. (IRL), gaining 6.24% and traded
at a 9.36% discount at month-end; Swiss Helvetia
Fund, Inc. (SWZ), rising 5.43% and traded at a 10.44%
TABLE 4 AVERAGE SIZE OF IPOs, SELECTED PERIODS, $MIL
discount on May 31; First Trust Dynamic Europe Equity
Income Fund (FDEU), gaining 5.30% and traded at a
3 MONTHS THROUGH 4/30/2017 229
3.98% discount at month-end; and BlackRock Science
COMPARABLE YEAR-EARLIER 3 MONTHS -
and Technology Trust (BST, housed in Lippers Science
& Technology classification), posting a 5.20% return and CALENDAR 2016 AVERAGE 348
traded at a 7.32% discount on May 31.
Source: Thomson Reuters Lipper
For the month the dispersion of performance in
individual equity CEFsranging from minus 9.87% to
positive 6.94%was wider than Aprils spread and more
skewed to the negative side. The 20 top-performing
equity CEFs posted returns at or above 3.89%, while the
20 lagging equity CEFs were at or below minus 5.59%.
For the month 86 CEFs in the equity universe posted
negative returns. Nine of the worst performing funds
were housed in the Energy MLP CEFs classification, with
Cushing MLP Total Return Fund (SRV) at the bottom

2
 FUNDMARKET INSIGHT REPORT
of the pile, shedding 9.87% of its April-closing NAV
price and traded at a 7.33% discount on May 31. Kayne
Anderson Energy Total Return Fund, Inc. (KYE) posted
the next poorest return in the equity universe, declining
9.57%. KYE traded at a 5.34% discount at month-end.
As a result of the better-than-expected nonfarm payrolls
report and the hawkish tone from some Fed officials,
the ten-year Treasury yield bounced from 2.29% at April
month-end to an intra-month closing high of 2.42% on
May 9; it then dipped again on continued White House
drama and softer economic data, closing the month at
2.21% on May 31 as inflationary expectations declined.
For the sixth month in a row domestic taxable bond
CEFs (+0.80%) posted a plus-side return on average
but were bettered by world income CEFs (+1.10%),
which benefitted from strong performance from Global
Income CEFs (+1.30%) and Emerging Markets Debt CEFs
(+0.69%). For the sixth consecutive month municipal
bond CEFs (+2.01%) also posted a return in the black on
average.
Investors continued their search for yield, bidding
up world income CEFs, despite growing geopolitical
concerns and the devastating suicide bombing at an
Ariana Grande concert in Manchester, England, that
left at least 22 people dead and scores injured. The
Eurozone purchasing managers index came in at a six-
month high, showing the economy was gaining strength
and providing a catalyst for investors. The domestic
fixed income CEFs macro-group was dragged down by
Loan Participation CEFs (+0.37%) and High Yield CEFs
(+0.76%). At the top of the domestic taxable bond CEFs
universe were US Mortgage CEFs (+1.38%), Corporate
Debt BBB-Rated CEFs (+1.06%), and Corporate Debt
BBB-Rated CEFs (Leveraged) (+1.01%).
For the sixth month running all Lipper municipal debt
CEF classifications posted returns in the black. New
Jersey Municipal Debt CEFs (+2.24%) and General &
Insured Municipal Debt CEFs (Leveraged) (+2.12%)
posted the strongest returns in the group, while General
& Insured Municipal Debt CEFs (Unleveraged) (+1.40%)
was the relative laggard. Single-state municipal debt
CEFs (+2.04%) outperformed their national municipal
debt CEF counterparts (+1.99%) by just 5 bps.
Four of the six top-performing individual CEFs in the
fixed income universe were housed in Lippers General &
Insured Municipal Debt CEFs (Leveraged) classification.
However, at the top of the charts was PIMCO Dynamic
Income Fund (PDI, warehoused in the Global Income
CEFs classification), returning 3.62% and traded at
a 6.99% premium on May 31. Following PDI were
BlackRock Investment Quality Municipal Trust Inc.
(BKN), returning 3.27% and traded at a 6.00% discount
at month-end; BlackRock Municipal Bond Trust (BBK),
posting a 3.27% return and traded at a 5.73% discount
on May 31; First Trust Strategic High Income Fund II
3
MAY 2017
(FHY, warehoused in the High Yield CEFs [Leveraged]
classification), tacking 3.26% onto its April month-
end value and traded at an 8.40% discount on May
31; Eaton Vance Municipal Income 2028 Term Trust
(ETX), returning 3.00% and traded at a 1.72% discount
at month-end; and Nuveen AMT-Free Municipal Credit
Income Fund (NVG), also returning 3.00% and traded
at a 7.00% discount at month-end.
For the remaining funds in the fixed income CEFs
universe monthly NAV-basis performance ranged from
minus 1.44% for Templeton Global Income Fund (GIM,
housed in Lippers Global Income CEFs classification),
traded at an 11.71% discount on May 31, to 2.99% for
Managed Duration Investment Grade Municipal Fund
(MZF, housed in Lippers General & Insured Municipal
Debt CEFs [Leveraged]), traded at a 6.96% discount at
month-end. The 20 top-performing fixed income CEFs
posted returns at or above 2.63%, while the 20 lagging
CEFs were at or below 0.19%. Only 11 fixed income CEFs
witnessed negative NAV-based performance for May.
PREMIUM AND DISCOUNT BEHAVIOR
For May the median discount of all CEFs narrowed
just 7 bps to 5.36%better than the 12-month moving
average discount (6.16%). Equity CEFs median discount
narrowed 42 bps to 6.37%, while fixed income CEFs
median discount widened 21 bps to 4.83%. World
Income CEFs median discount witnessed the largest
narrowing of discounts in the CEFs universe, 63 bps
to 5.74%, while the single-state municipal bond
CEFs macro-group witnessed the largest widening of
discounts80 bps to 6.55%.
For the month 44% of all funds discounts or premiums
improved, while 52% worsened. In particular, 58%
of equity funds and 34% of fixed income funds saw
their individual discounts narrow, premiums widen,
or premiums replace discounts. The number of funds
traded at premiums on May 31 (114) was 7 more than on
April 28.
 FUNDMARKET INSIGHT REPORT
CEF EVENTS AND CORPORATE ACTIONS
IPOs
There were no CEF IPOs in May.
RIGHTS, REPURCHASES, TENDER OFFERS
The boards of trustees of Advent Claymore
Convertible Securities and Income Fund (AVK) and
Advent Claymore Convertible Securities and Income
Fund II (AGC) approved cash tender offers for up to
15% of each funds respective outstanding common
shares of beneficial interest at a price per share equal
to 98% of each funds respective NAV per share as of
the business day immediately following the expiration
date of the tender offers. AVK and AGC will repurchase
shares tendered and accepted in the tender offers in
exchange for cash. The respective board of trustees of
AVK and AGC believes the tender offers could benefit
participating shareholders by providing liquidity at a
price per share that is higher than the then-current
market price of the shares. The boards of trustees
believe the tender offers could also benefit the funds
and their long-term shareholders because the tender
offers would be conducted at a price per share that
would be accretive to NAV. AVK and AGC agreed not to
complete the tender offers prior to August 1, 2017.
Advent/Claymore Enhanced Growth & Income Fund
(LCM) announced that the funds board of trustees
approved a modification to the funds previously
announced potential tender offer for up to 32.5% of
the funds outstanding common shares of beneficial
interest at a price per share equal to 98% of the funds
NAV as of the business day immediately following
expiration of the tender offer. Under the modified terms
the fund will repurchase shares tendered and accepted
in the tender offer in exchange for cash instead of in
exchange for a pro rata portion of the funds portfolio
securities. It was anticipated the tender offer will
commence as soon as commercially practicable but no
later than June 16, 2017.
The Taiwan Fund, Inc. (TWN) announced that on May
2, 2017, the fund repurchased 1,209 shares and on May
17, 2017, the fund repurchased 3,054 shares under the
funds discount management policy.
The New Ireland Fund, Inc. (IRL) announced that in
accordance with its offer to purchase 30% of its issued
and outstanding common shares, which expired on
May 5, 2017, the fund accepted 1,601,285 shares for
payment on or about May 12, 2017, at $14.70 per share,
which was equal to 98% of the funds NAV per share as
of the close of regular trading on the New York Stock
Exchange (NYSE) on May 8, 2017. The fund will make
prompt payment to participating shareholders of the
purchase price for shares accepted in the tender offer.
Approximately 1,601,285 shares or approximately 30%
of the funds issued and outstanding common shares
were properly tendered and not withdrawn prior to the
4
MAY 2017
expiration of the offer. Consistent with the terms of the
offer, on a pro-rated basis approximately 64.75% of
the shares properly tendered by each shareholder were
accepted for payment.
Wells Fargo Multi-Sector Income Fund (ERC)
announced the final results of its tender offer for up
to 15% (or 6,165,826) of its outstanding shares. The
offer expired on Thursday, May 11, 2017. Based on a
count by Computershare Trust Company, N.A., the
depositary for the tender offer, 18,987,662 common
shares or approximately 46.1925% of the funds Authored by:
common shares outstanding were tendered. The fund TOM ROSEEN
accepted 6,165,826 shares for cash payment at a price HEAD OF RESEARCH SERVICES
equal to 98% of the funds NAV per share effective THOMSON REUTERS LIPPER
as of the close of the regular trading session of the
NYSE on May 12, 2017, the pricing date stated in the
offer to purchase. Because the total number of shares
tendered exceeded the number of shares offered to
purchase, all tendered shares were subject to proration
in accordance with the terms of the offer to purchase.
Following the purchase of the tendered shares, the
fund had approximately 34,939,684 common shares
outstanding.
Western Asset Middle Market Income Fund Inc.
(XWMFX) announced that the funds board of directors
approved a tender offer to purchase for cash up to
2.5% of the funds outstanding common shares. The
tender offer will be conducted at a price equal to the
funds NAV per common share on the day on which the
tender offer expires. The fund intended to commence
its tender offer on or about June 5, 2017, with the
expiration of the tender offer expected to be July 5,
2017.
Western Asset Middle Market Debt Fund Inc.
(XWAMX) announced that the funds board of directors
approved a tender offer for up to 10% of the funds
outstanding common shares. The tender offer will
be conducted at a price equal to the funds NAV per
common share on the day on which the tender offer
expires. The fund intended to commence its tender
offer on or about June 5, 2017, with the expiration of the
tender offer expected to be July 5, 2017.
Delaware Investments Dividend and Income Fund,
Inc. (DDF) announced that its board of directors
authorized an issuer tender offer to purchase for cash
up to 404,640 of its common shares, representing
5% of its issued and outstanding common shares.
The tender offer was to commence on Thursday, June
1, 2017, and will expire unless extended on Thursday,
June 29, 2017. Subject to various terms and conditions
described in offering materials to be distributed to
shareholders: (1) purchases will be made at a price
per share equal to 98% of the funds NAV per share as
of the close of trading on the first business day after
the expiration of the offer; and (2) if more shares are
tendered than the amount the board authorized to
 FUNDMARKET INSIGHT REPORT
purchase, the fund will purchase a number of shares
equal to the offer amount on a prorated basis.
First Trust/Aberdeen Global Opportunity Income
Fund (FAM) commenced a tender offer. As previously
announced, the fund will purchase up to 25% of its
outstanding common shares for cash at a price per share
equal to 98% of the NAV per share determined on the
date the tender offer expires. The tender offer will expire
on June 23, 2017, or on such later date to which the offer
is extended. If the amount of the funds outstanding
common shares that is tendered exceeds the maximum
amount of its offer, the fund will purchase shares from
tendering shareholders on a pro rata basis.
Virtus Global Dividend & Income Fund Inc. (ZTR) and
Virtus Total Return Fund Inc. (ZF) each commenced
a tender offer to acquire for cash up to 5% of its
outstanding shares at a price equal to 98% of the funds
NAV per share as of the close of regular trading on the
NYSE on the date the offer expires. If more than 5%
of a funds outstanding shares are tendered, the fund
will purchase shares from tendering stockholders on a
pro-rata basis. The tender offers were being made on the
terms and subject to the conditions set forth in the issuer
tender offer statements and related letters of transmittal
filed with the Securities and Exchange Commission. The
tender offers will terminate on June 23, 2017, unless
extended. The pricing date will also be June 23, 2017,
unless the tender offers are extended.
The board of directors of The Korea Fund, Inc. (KF)
announced the final results of its tender offer. As
previously announced, the fund conducted a tender
offer to purchase for cash up to 10% of its issued and
outstanding common shares at a price equal to 98%
of its NAV per share on the expiration date. The funds
tender offer, which expired on Tuesday, May 23, 2017, was
oversubscribed. Therefore, the fund will purchase 10% of
its respective outstanding common shares on a pro rata
basis based on the number of shares properly tendered.
NexPoint Credit Strategies Fund (NHF) announced
the successful completion of its nontransferable rights
offering. Total subscriptions were equal to 233% of the
primary offering. The offer commenced on May 8, 2017,
and expired on May 24, 2017. The offer entitled rights
holders to subscribe for up to an aggregate of 5,346,306
of the funds common shares. Pursuant to the offer, the
fund issued one nontransferable right for each common
share of the fund to shareholders of record as of May
5, 2017. Holders of rights were entitled to purchase
one newly issued share for every three rights held. The
subscription price for each share issued pursuant to the
offer was $20.93, which represented 95% of the average
of the last reported sales price of the funds common
shares on the NYSE on the expiration date and on each
of the four trading days preceding the expiration date.
Preliminary results indicated the fund received
subscriptions for shares totaling approximately $269
5
MAY 2017
million (including oversubscription requests and notices
of guaranteed delivery), representing 233% of the
5,346,306 shares available to be issued pursuant to
the primary subscription. Oversubscription requests
exceeded the oversubscription shares available and
the 1,336,576 additional shares available pursuant
to the exercise of an over-allotment option. The
oversubscription shares and secondary subscription
shares will be allocated pro rata among those record-
date shareholders who oversubscribed based on the
number of common shares of the trust owned by such
shareholders on May 5, 2017, the record date.
MERGERS AND REORGANIZATIONS
Shareholders of Nuveen Flexible Investment Income
Fund (JPW) approved the funds merger with and into
Nuveen Preferred Income Opportunities Fund (JPC).
On November 17, 2016, the board of trustees of the
two CEFs approved a plan to merge the funds in order
to reduce common shareholder fees and expenses
and increase common net earnings. Subject to the
satisfaction of certain customary closing conditions, the
reorganization was expected to become effective June 12,
2017.
The board of trustees of each of Madison Covered
Call & Equity Strategy Fund (MCN) and Madison
Strategic Sector Premium Fund (MSP) approved the
reorganization of MSP into MCN, with anticipation that
MCN will be the surviving fund. The proposed merger and
timing were a result of each boards ongoing assessment
of the funds and their competitive positioning in the
market. The board of trustees of each fund anticipated
the reorganization will benefit shareholders of each fund.
It was expected that the reorganization will be
completed in the second half of 2017, subject to required
shareholder approvals and the satisfaction of applicable
regulatory requirements and other customary closing
conditions. The advisor, Madison Asset Management, will
bear the expenses associated with the reorganization.
OTHER
Deutsche Global High Income Fund, Inc. (LBF)
announced that its board of directors approved a plan
of liquidation and dissolution for the fund related to the
previously approved liquidation of the fund to occur on or
before September 30, 2017. As further described below,
pursuant to the plan a final liquidating distribution was
expected to be made on or about September 15, 2017.
Under the terms of the plan the cessation date for the
funds planned liquidation was expected to occur on or
about September 8, 2017. As provided in the plan, at
the close of business on the cessation date the fund will
cease to engage in any business activities, except for the
purpose of liquidating and winding up its affairs, and the
books of the fund will be closed.
 FUNDMARKET INSIGHT REPORT MAY 2017

Following the announcement on May 15, 2017, the assets

of JPMorgan China Region Fund, Inc. (JFC) comprised
99.4% cash, having undertaken liquidation of the
majority of the investment portfolio and repayment of any
outstanding loans, all pursuant to the plan of liquidation
and dissolution described in and attached to the proxy
statement. As described in the proxy statement, JFC assets
held through the Qualified Foreign Institutional Investor
(QFII) program may only be repatriated once approved
by Chinese regulators, the timing of which was not known.
These assets would be held in renminbi until such time
approval is granted. As a result shareholders will not
receive the NAV less liquidation costs for these assets in
the liquidating distribution and instead will receive an
interest in a liquidating trust that was anticipated to make
additional distributions to shareholders upon repatriation
of amounts under the QFII program.

Thomson Reuters 2017. All Rights Reserved. Lipper FundMarket Insight

Reports are for informational purposes only, and do not constitute investment
advice or an offer to sell or the solicitation of an offer to buy any security of
any entity in any jurisdiction. No guarantee is made that the information in
this report is accurate or complete and no warranties are made with regard to
the results to be obtained from its use. In addition, Thomson Reuters Lipper
will not be liable for any loss or damage resulting from information obtained
from Lipper or any of its affiliates.

For immediate assistance, feel free to contact Lipper Client Services toll-free
at 877.955.4773 or via email at LipperClientServices@thomsonreuters.
com. For more information about Thomson Reuters Lipper, please visit our
website at financial.tr.com or lipperalphainsight.com