RSF - CEF Weekly Market Review: How Fund Allocation Tilts Explain Returns

• We review CEF market valuation and performance over the second week of September and highlight recent market events.
• Although risk appetite has remained supportive, CEF market returns have reduced substantially due to low risk-free rates, expensive equity and credit valuations, and tight discounts.
• A key dynamic to keep in mind for CEF investors is that allocation choices across funds in the same sector can lead to very different performance results.
• We also discuss the dynamics of the underlying income of RSF with an approach that can apply to other credit CEFs.

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