New York, NY (PRWEB) April 05, 2013
New York, NY, April 4, 2013 - Over the past two months, municipal closed-end fund (CEF) market prices, as measured by the S-Network Municipal Bond Closed-End Fund Index (Ticker: CEFMX), have come under some selling pressure. As a result, average discounts moved to approximately 3.00% in March, which is in line with the ten-year average. Muni closed-end funds had traded at a premium through much of 2012.
“Market price declines presented a tactical opportunity to add exposure to municipal CEFs, which offer a federal income tax exempt weighted yield of 5.67%,” said Paul Mazzilli, Consulting Closed-End Fund Analyst at S-Network Global Indexes.
Further information regarding the performance of municipal bond closed-end funds in the month of March can be found at http://www.closedendfundindex.com/pdf/cefmx-IndexInsights-20130403.pdf.
The S-Network Municipal Bond Closed-End Fund Index is a mutual fund index designed to serve as a benchmark for closed-end funds listed in the US that are principally engaged in asset management processes designed to produce federally tax-exempt yield. The CEFMX employs a modified total net assets weighting methodology designed to assure accurate investment exposure across the various style segments that together comprise the federally tax-exempt annual yield sector of the closed-end fund market.
Detailed information on the S-Network Municipal Bond Closed-End Fund Index is available at http://www.closedendfundindex.com. Data is also available through most vendors of financial data.
Index: S-Network Municipal Bond Closed-end Fund Index (USD) TICKER: CEFMX
Related ETF: Market Vectors CEF Municipal Income ETF (USD) TICKER: XMPT
Further information on the Market Vectors Municipal Income ETF can be found at http://www.vaneck.com/funds/XMPT.aspx.
Market Vectors CEF Municipal Income ETF is distributed by Van Eck Associates Corporation. S-Network Global Indexes, LLC does not sponsor, endorse, or promote the Fund and bears no liability with respect to the Fund or any security.