CEFA’s Quarterly Closed-End Fund Review & Outlook: 2011 Review & First Quarter 2012

The data provided below comes from the December 30 issue of CEFA’s Closed-End Fund Universe Report with data supplied by Morningstar (www.CEFfuniverse.com).

2011 Closed-End Fund Sector Breakdown

The Year Ended with 632 US listed Closed-End Funds

52 US Equity Funds
106 Specialty Equity Funds
65 International / Non US Equity Funds

153 Taxable Bond Funds

105 National Municipal Bond Funds
150 State Specific Municipal Bond Funds

2011 Closed-End Fund Initial Public Offerings (IPOs)
19 funds raised $6.002 billion in new fund assets

The Average CEF IPO was: $315.9 million

The Largest CEF IPO: BlackRock Resources & Commodity (BCX) at $875M
The Smallest CEF IPO: Oxford Lane Capital Corp (OXLC) at $36.5M

Date            Ticker     Investment Objective

1/20/2011    OXLC      Senior Loans
1/26/2011     ACP        Senior Loans
1/26/2011     BGX        Senior Loans
1/31/2011     GNT        Natural Resources / Gold / Income

2/23/2011     JMF        Master Limited Partnerships
2/24/2011     AFT        Senior Loans

3/28/2011     BCX        Commodity / Natural Resources

4/26/2011     IHD         Emerging Market Equity Income

5/25/2011     HEQ       Covered Call / Option Income
5/25/2011     SMF       Master Limited Partnerships
5/26/2011     JSD        Senior Loans

6/13/2011     EMO       Master Limited Partnerships

7/29/2011     DPG       US & International Utility Stocks

8/26/2011     INF         US & International Infrastructure Stocks

9/27/2011     FIF         Master Limited Partnership / Infrastructure

10/27/2011   GEQ       Covered Call / Option Income
10/27/2011   TTP         Master Limited Partnerships

11/23/2011   BUI          Utility / Infrastructure w/ Option Income

12/12/2011   KIPO       Pre-Initial Public Offerings Equity / Venture Capital

Major CEF Group Average (Income / Total Distribution) Yield

As of December 30, 2011, the average income-only yield is 5.5% while the average total distribution yield is 7.1%.

“Income Only Yield” / “Total Distribution Yield”

US Equity Funds – 3.6% / 7.7%

Specialty Equity Funds – 3.5% / 8.3%
International / Non US Equity Funds – 3.7% / 7.1%

Average Equity Closed-End Fund – 3.6% / 7.8%

Taxable Bond Funds – 7.4% / 8.1%

National Municipal Bond Funds – 6.2% / 6.2%
State Specific Municipal Bond Funds – 5.8% / 5.8%

Average Bond Closed-End Fund – 6.5% / 6.8%

2011 Average Net Asset Value Total Return
One of The Best Ways to Compare a CEF’s Portfolio Managers vs. Peer CEFs

US Equity Funds:  -0.3%
Specialty Equity Funds: +3.5%
International / Non US Equity Funds: -2.3%

Taxable Bond Funds: +3.0%

National Municipal Bond Funds:  +16.8%
State Specific Municipal Bond Funds:  +15.9%

2011 Market Price Total Return
Results for the average shareholders who held their shares for the entire year

US Equity Funds:  -2.2%
Specialty Equity Funds: +1.3%
International / Non US Equity Funds: -15.5%

Taxable Bond Funds: +5.3%

National Municipal Bond Funds: +20.4%
State Specific Municipal Bond Funds:  +19.2%