• The closed-end fund market has yet to see a new product launch through the first seven months of 2023, following just four IPOs in 2022. The extended period of wide discounts to NAV since the end of 2021 suggests little demand and has made it a difficult market for IPOs. At the end of July, the asset-weighted average discount was 6.8% for equity closed-funds and 9.7% for fixed income, representing their steepest discounts since 2020’s COVID-19 market drop.
• Rationalizations have substantially outpaced launches over the past several years, another indicator of muted activity. From 2020 through 2022, there were a total of 25 closed-end fund launches versus 91 rationalizations.

Asset-Weighted Average Premium Discount Percentage to NAV by Asset Class

Source: Morningstar, FUSE Research Network