(1) At June 30, 2016. Source: Cohen & Steers and Morningstar. Unless otherwise noted, closed-end funds in this report are represented by the Morningstar U.S. All Taxable Ex-Foreign Equity Closed-End Fund Index. Yield for closed-end funds refers to the distribution rate, which is calculated by dividing the last distribution paid per share (annualized) by the market price.
Index Definitions. Investors cannot invest directly in an index, and index performance does not reflect the deduction of any fees, expenses or taxes.
The BofA Merrill Lynch Corporate Master Index (Credit quality: A-) tracks the performance of U.S. dollar-denominated investment-grade corporate debt publicly issued in the U.S. domestic market.
The BofA Merrill Lynch Municipal Master Index (Credit quality: AA-) tracks the performance of U.S. dollar-denominated investment-grade tax-exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market.
The Federal Reserve 10-Year Treasury Constant Maturity Rate is published by the Federal Reserve Board based on average yield of a range of treasury securities, all adjusted to the equivalent of a 10-year maturity. Yields on treasury securities at constant maturity are determined by the U.S. Treasury from the daily yield curve.
The Morningstar U.S. All Equity & Hybrid Ex-Foreign Equity Closed-End Fund Index measures the market-cap-weighted total return of 166 equity and hybrid-equity closed-end funds; it excludes taxable fixed income, municipal, international, regional and country closed-end funds.
The Morningstar U.S. All Taxable Ex-Foreign Equity Closed-End Fund Index measures the market-cap-weighted total return of 331 taxable equity and fixed income closed-end funds; it excludes international, regional and country closed-end funds.
The Morningstar U.S. All Taxable Fixed Income Closed-End Fund Index measures the market-cap-weighted total return of 166 taxable fixed income closed-end funds; it excludes national and single-state municipal closed-end funds.
The Morningstar U.S. National Municipal Closed-End Fund Index measures the market-cap-weighted total return of 87 municipal closed-end funds; it excludes single-state municipal closed-end funds.
The S&P 500 Index is an unmanaged index of 500 large-capitalization, publicly traded U.S. stocks representing a variety of industries.
Important Disclosures. Performance data quoted represents past performance. Past performance is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. There is no guarantee that any historical trend illustrated in this commentary will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this commentary will be realized. This material represents an assessment of the market environment at a speciﬁc point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment.
Returns in this report are based on market price and assume the reinvestment of all distributions. All returns include the deduction of management fees, operating expenses and all other fund expenses, and do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
Risks of Investing in Closed-End Funds. Shares of many closed-end funds frequently trade at a discount from their net asset value. The funds are subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods, adversely affecting the value of an investment in a fund.
Distribution Rate. The distribution rate is calculated dividing the last distribution paid per share (annualized) by the market price. Note that the number of income distributions is based on the fund’s distribution payment frequency (i.e. monthly or quarterly). A fund may pay distributions in excess of its net investment company taxable income and, to the extent this occurs, the distribution yield quoted will include a return of capital. Under federal tax regulations, some or all of the return of capital distributed by a fund may be taxed as ordinary income. In addition, distributions for funds investing in real estate investment trusts (REITs) may later be characterized as capital gains and/or a return of capital, depending on the character of the dividends reported to each fund after year-end by REITs held by a fund.
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