FUNDMARKET INSIGHT REPORT LIPPER RESEARCH SERIES

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1 FUNDMARKET INSIGHT REPORT LIPPER RESEARCH SERIES SEPTEMBER 30, 2018 The Month in Closed-End Funds: September 2018 PERFORMANCE For the first month in six equity CEFs on average witnessed negative performance on both a NAV basis and a market basis, declining 0.41% and 0.69%, respectively, for September. For the first time in five months and three months, respectively, their fixed income CEF counterparts also posted negative returns on a NAV basis (-0.07%) and a market basis (-1.36%). Continuing trade-war concerns, declines in mega-cap tech stocks, and worries over Italy s budget crisis weighed on tech-oriented and small-cap issues despite a better-than-expected August nonfarm-payrolls report, encouraging economic news, and the Dow Jones Industrial Average s hitting all-time highs during the month. The DJIA Price Only Index and the S&P 500 Price Only Index rising 1.90% and 0.43% ended the month with the strongest returns, while the Russell 2000 Price Only Index (-2.54%) and the NASDAQ Composite Price Only Index (-0.78%) were in the red. At the beginning of September investors continued to pressure stocks after President Donald Trump threatened to add an additional $267 billion in tariffs on Chinese goods to the $200 billion his administration had already earmarked. Despite reports that showed the U.S. economy had added 201,000 new jobs for August, slightly outpacing analyst expectations of 200,000, technology issues extended losses as a few megacap stocks suffered, with Facebook and Alphabet losing 7.2% and 4.4%, respectively, on the week. The unemployment rate held steady at 3.9%, but wage growth heated up. The following week investors shrugged off the continuing trade tensions as the CBOE Volatility Index (VIX) saw its largest weekly decline since April, and all three major indices witnessed solid gains for the week. Investors turned their focus back to the strong earnings and economic data. While U.S. retailers had posted their weakest sales in six months (+0.1% for August), retail sales managed to inch up, and the September consumer confidence index rose to its second highest reading since Both the DJIA and the S&P 500 closed at record highs. While mega-cap tech- and internet-related stocks weighed on the NASDAQ on Friday, September 21, the DJIA notched its second straight record close as IHS Markit data showed the September manufacturing sector rose to 55.6 from its August reading of However, investors became less sanguine toward month-end as the U.S./China trade war entered the next stage where tariffs on billions of dollars of goods went into effect and investors began contemplating the Federal Open Market Committee s possible next steps at its then-upcoming policy meeting. Those sectors closely tied to trade, particularly materials and industrials, witnessed the largest declines as Chinese officials accused the U.S. of trade bullyism. Oil futures rallied to their highest levels in more than three years as major oil producers refused to increase crude oil output in the face of expected supply disruptions. As was expected, on September 26 the Fed raised its key lending rate a quarter point to a range of 2.00% to 2.25% and predicted another hike in December and three more in In addition, the committee removed the phrase that its policy remains accommodative, which according to Fed Chair Powell meant the economy was performing as expected. Despite reports that new-home sales had risen 3.5% for August, stocks gave up early gains after the Fed s announcement. At month-end the S&P 500 Index (+7.20%) posted its strongest quarterly return since Q The Month in Closed-End Funds: September 2018 For the first month in six equity closed-end funds (CEFs) on average witnessed a loss, declining 0.41% on a net-asset-value (NAV) basis for September. Meanwhile, for the first month in five their fixed income CEF counterparts also posted a negative return, losing 0.07% on average for the month. For September only 17% of all CEFs traded at a premium to their NAV, with 25% of equity CEFs and 13% of fixed income CEFs trading in premium territory. National municipal debt CEFs witnessed the largest widening of discounts for the month among Lipper s CEF macro-groups 185 basis points (bps) to 9.51%. Options Arbitrage/Options Strategies CEFs (+0.33%) posted the strongest plus-side return of all the equity CEF classifications. Emerging Markets Debt CEFs (+3.24%, August s laggard) posted the strongest return of all the CEF classifications. For the first month in five the municipal debt CEFs macro-group posted a negative return on average (-0.89%), with all classifications in the group witnessing declines for September. Authored by: TOM ROSEEN HEAD OF RESEARCH SERVICES LIPPER 1

2 During the month of September the Treasury curve shifted up, with yields rising at the short end and the long end of the curve. Only the three-, six-, and twelvemonth yields witnessed increases less than 17 bps, while the five- and seven-year yields each experienced the largest increases 20 bps to 2.94% and 3.01%, respectively. The two-/ten-year Treasury spread ended the month at 24 bps after dipping as low as 21 bps on multiple days. For September the dollar weakened against the euro (-0.23%) and the pound (-0.69%) but strengthened against the yen (+2.26%). Commodities prices were mixed for the month, with near-month gold prices declining 0.73% to close the month at $1,191.50/ounce and with front-month crude oil prices gaining 4.94% to close at $73.25/barrel. For the month only 46% of all CEFs posted NAV-based returns in the black, with 45% of equity CEFs and 47% of fixed income CEFs chalking up returns in the plus column. For the first month in eight Lipper s world equity CEFs macro-group (-0.31%) outpaced/mitigated losses better than its two equity-based brethren: domestic equity CEFs (-0.44%) and mixed-asset CEFs (-0.42%). Relatively stronger returns from select buy-write and covered-called funds helped the Options Arbitrage/ Options Strategies CEFs classification (+0.33%) rise to the top of the equity charts, followed by Global CEFs (+0.25%) and Natural Resources CEFs (0.00%). Energy MLP CEFs (-1.56%) was the cellar dweller of the equity universe, bettered by Sector Equity CEFs (-1.04%) and Emerging Markets CEFs (-0.98%). For the remaining equity classifications returns ranged from minus 0.89% (Utility CEFs) to minus 0.09% (Pacific ex-japan CEFs). Four of the five top-performing equity CEFs were housed in the world equity CEFs macro-group. At the top of the chart was RENN Fund, Inc. (RCG, housed in the Global CEFs classification), rising 13.44% on a NAV basis and traded at a 14.22% discount on September 28. RCG was followed by Central and Eastern Europe Fund, Inc. (CEE, housed in Lipper s Emerging Markets CEFs classification), gaining 6.95% and traded at a 5.57% discount at month-end; Latin American Discovery Fund, Inc. (LDF, also warehoused in the Emerging Markets CEFs classification), rising 3.08% and traded at a 1.67% discount on September 28; Aberdeen Japan Equity Fund, Inc. (JEQ, housed in the Developed Markets CEFs classification), gaining 2.93% and traded at a 14.65% discount at month-end; and NexPoint Real Estate Strategies Fund; Class Z Shares (NRSZX, an interval hybrid fund, housed in the Real Estate CEFs classification), posting a 2.81% return. For the month the dispersion of performance in individual equity CEFs ranging from minus 13.14% to positive 13.44% was wider than August s spread and more skewed to the negative side. The 20 top- CLOSED-END FUNDS LAB TABLE 1 TABLE 4 AVERAGE SIZE OF IPOs, SELECTED PERIODS, $MIL 3 MONTHS THROUGH 8/31/ COMPARABLE YEAR-EARLIER 3 MONTHS 445 CALENDAR 2017 AVERAGE 339 Source: Lipper CURRENT-MONTH PERFORMANCE, P&D, P&D SHIFTS (% OF UNIVERSE) NAV RETURNS POSITIVE PREMIUM/DISCOUNT NOW TRADING AT BETTER WORSE PREMIUM DISCOUNT Equity Funds Bond Funds ALL CEFs TABLE 2 AVERAGE NAV RETURNS, SELECTED PERIODS (%) SEPTEMBER YTD 3-MONTH CALENDAR-2017 Equity Funds Bond Funds ALL CEFs TABLE 3 NUMBER OF IPOs, YTD VERSUS PRIOR YEAR SEPTEMBER 2018 CALENDAR-2017 Conventional CEFs 1 12 Interval CEFs TABLE 5 NUMBER OF MERGERS & LIQUIDATIONS, YTD VERSUS PRIOR YEAR SEPTEMBER 2018 CALENDAR-2017 ALL CEFs

3 performing equity CEFs posted returns at or above 1.36%, while the 20 lagging equity CEFs were at or below minus 2.56%. For the month 140 CEFs in the equity universe posted negative returns. The two worst performing funds were housed in the Emerging Markets CEFs classification: Morgan Stanley India Investment Fund, Inc. (IIF) shed 13.14% of its August-closing NAV price and traded at an 11.11% discount on September 28. IIF was bettered by India Fund, Inc. (IFN, also housed in the Emerging Markets CEFs classification), declining 10.34% and traded at a 12.15% discount at month-end. Despite a hike in the Fed s key lending rate, investors remained on the hunt for yield during the month. As mentioned earlier, the Treasury yield sifted up during the month. The ten-year Treasury yield settled up 19 bps for the month at 3.05%, after climbing to 3.10% on September 25. For the seventh month running domestic taxable bond CEFs posted a plus-side return on average (+0.57%), bettering municipal bond CEFs (-0.89%) but underperforming world income CEFs (+1.52%). The world income CEFs macro-group was propped up by the performance of Emerging Markets Debt CEFs (+3.24%) and Global Income CEFs (+0.72%). Domestic taxable fixed income CEFs posted relatively strong returns for the month, helped by High Yield CEFs (+0.95%) and High Yield CEFs (Leveraged) (+0.82%). Loan Participation CEFs (+0.78%) and General Bond CEFs (+0.36%) posted the next strongest returns in the macro-group. Corporate Debt BBB-Rated CEFs (-0.15%) and Corporate Debt BBB-Rated CEFs (Leveraged) (-0.14%) were the macro-group s laggards. For the first month in five the municipal debt CEFs macro-group posted a return in the red (-0.89%). All the classifications in the group witnessed losses for September. The Intermediate Municipal Debt CEFs (-0.53%), General & Insured Municipal Debt CEFs (-0.56%), and High Yield Municipal Debt CEFs (-0.71%) classifications did the best job of mitigating losses in the group, while Pennsylvania Municipal Debt CEFs (-1.13%) witnessed the largest decline. National municipal debt CEFs (-0.79%) mitigated losses better than their singlestate municipal debt CEF counterparts (-1.00%). Four of the five top-performing individual fixed income CEFs were housed in Lipper s Emerging Markets Debt CEFs classification. At the top of the fixed income universe chart was Dreyfus High Yield Strategies Fund (DHF, housed in the High Yield CEFs [Leveraged] classification), returning 6.95% and traded at a 5.57% discount on September 28. Following DHF were Stone Harbor Emerging Markets Income Fund (EDF), returning 5.28% and traded at a 15.08% premium at month-end; Stone Harbor Emerging Markets Total Income Fund (EDI), posting a 5.06% return and traded at a 2.82% discount on September 28; Nuveen Emerging Markets Debt 2022 Target Term Fund (JEMD), tacking 3.35% onto its August month-end value and traded at a 6.51% discount at month-end; and Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. (EDD), returning 2.60% and traded at an 8.42% discount on September 28. For the remaining funds in the fixed income CEFs universe monthly NAV-basis performance ranged from minus 2.53% for Franklin Limited Duration Income Trust (FTF, housed in Lipper s General Bond CEFs classification and traded at a 9.03% discount on September 28) to 2.52% for Forefront Income Trust (BFITX, an interval hybrid CEF housed in Lipper s High Yield CEFs classification). The 20 top-performing fixed income CEFs posted returns at or above 1.48%, while the 20 lagging CEFs were at or below minus 1.31%. There were 182 fixed income CEFs that witnessed negative NAV-based performance for September. PREMIUM AND DISCOUNT BEHAVIOR For September the median discount of all CEFs widened 78 bps to 8.26% wider than the 12-month moving average median discount (7.11%). Equity CEFs median discount narrowed 11 bps to 6.13%, while fixed income CEFs median discount widened 136 bps to 9.79%. National municipal debt CEFs median discount witnessed the largest widening among the CEF macrogroups 185 bps to 9.51%, while world equity CEFs witnessed the largest narrowing of discounts 36 bps to 10.48%. For the month 30% of all funds discounts or premiums improved, while 68% worsened. In particular, 43% of equity CEFs and 20% of fixed income CEFs saw their individual discounts narrow, premiums widen, or premiums replace discounts. The number of funds traded at premiums on September 28 (88) was three less than the number on August 31. 3

4 CEF EVENTS AND CORPORATE ACTIONS IPOs American Beacon Advisors, Inc. announced launch of American Beacon Apollo Total Return Fund, a newly organized interval fund and cross-platform credit vehicle. The fund s shares became available on September 12, 2018, under the ticker symbol ATRYX. American Beacon Apollo Total Return Fund was the result of a partnership between American Beacon and Apollo Global Management, LLC. The new fund s strategy was to allocate investments across the credit landscape to areas Apollo believes produce the most attractive risk-adjusted returns. According to the fund s press release, American Beacon Apollo Total Return Fund was developed in response to investors increasing appetite for strategies that have the flexibility to invest in multiple sectors and asset classes with the goal of delivering an attractive returnand-risk profile with lower correlation to traditional investments. The fund was to employ a strategy traditionally available only to institutional investors. Delivering the product as an interval fund rather than as a mutual fund was to enable the Apollo team to leverage the strengths of its credit platform and encourage clients to stay invested long term to fully realize the benefits. OppenheimerFunds and The Carlyle Group announced launch of OFI Carlyle Private Credit Fund, the first fund strategy made available through the firms joint venture that provides global private credit opportunities for high-net-worth (HNW) investors and advisors. Designed for long-term investors seeking current income, the strategy would opportunistically allocate assets across a range of credit strategies, including direct lending, opportunistic credit, structured credit, and liquid credit to companies around the world. The fund began continuously offering its common shares on June 4, As of August 20, 2018, the fund simultaneously redesignated its issued and outstanding common shares as Class A Shares and created its Class I, Class L, and Class Y Shares. An investment in any share class of the fund was to represent an investment in the same assets of the fund. However, the purchase restrictions and ongoing fees and expenses for each share class were to be different. The fund was organized as a continuously offered, nondiversified closed-end management investment company operated as an interval fund. (CEFs differ from open-end funds [commonly known as mutual funds] in that investors in CEFs do not have the right to redeem their shares on a daily basis.) Unlike most CEFs, which typically list their shares on a securities exchange, the fund did not intend to list the shares for trading on any securities exchange, and the fund did not expect any secondary market to develop for the shares in the foreseeable future. Therefore, an investment in the fund, unlike an investment in a typical CEF, would not be a liquid investment. To provide some liquidity to shareholders, the fund was structured as an interval fund and was to conduct quarterly repurchase offers for a limited amount of the fund s shares (at least 5%). Pioneer Investments launched a new insurance-linked securities (ILS) fund strategy, named Pioneer ILS Bridge Fund, organized as a non-diversified closedend management investment company. The fund was designed to enable investors to maintain or grow their allocations to reinsurance as an asset class, particularly after a market-dislocating catastrophe event. The new fund would seek to help U.S. mutual fund manager Pioneer Investments capitalize on the expected need for more capacity when the reinsurance market eventually faces a massive catastrophe loss. Pioneer ILS Bridge Fund was to invest in a range of insurance-linked securities (ILS), including catastrophe bonds, quota-share reinsurance sidecars, collateralized reinsurance investments, industry loss warranties (ILWs), event-linked swaps (catastrophe swaps) as well as other securities of companies in the insurance or reinsurance sector, and other types of insurance- and reinsurance-related securities. Around 80% of the fund s assets would be expected to normally be held in ILS assets at any one time. Pioneer ILS Bridge Fund was to be operated as an interval-style mutual fund, giving the managers more control and certainty over redemptions and capital. Pursuant to the fund s interval fund structure, the fund was to conduct quarterly repurchase offers of no less than 5% and no more than 25% of the fund s outstanding shares at NAV. Typically, the fund was to seek to conduct such quarterly repurchase offers for 10% of the fund s outstanding shares at NAV. Even though the fund was to make quarterly repurchase offers, investors should consider the fund s shares illiquid. RIGHTS, REPURCHASES, TENDER OFFERS Liberty All-Star Growth Fund, Inc. (ASG) announced it set the record date for its previously announced rights offering. The fund was to issue nontransferable rights to its shareholders of record at the close of business on September 17, 2018 (ex-date of September 14, 2018). Record-date shareholders were to receive one right for each share held and would be allowed to purchase one additional share of the fund for each three rights received. Shareholders who fully exercised their rights could subscribe for additional shares not subscribed for by other shareholders in the primary subscription. If such oversubscription requests were to exceed the number of shares available, the fund could in its sole discretion elect to issue additional shares in an amount of up to 25% of the shares issued in the primary subscription. Authored by: TOM ROSEEN HEAD OF RESEARCH SERVICES LIPPER 4

5 The offering was subject to the effectiveness of the fund s registration statement on file with the Securities and Exchange Commission (SEC) and was to be made only by means of a prospectus. The rights offering was expected to commence on or about September 21, 2018, and to expire on or about October 23, The subscription price per share was to be 95% of the reported NAV or market price per share, whichever was lower on the expiration date. Market price per share would be determined based on the average of the last reported sales prices of a share on the New York Stock Exchange (NYSE) on the expiration date and the four trading days preceding the expiration date. The China Fund, Inc. (CHN) announced that its board determined to make a change in the terms of its previously announced approval in principle of a one-time tender offer. As noted in the press release of August 27, 2018, the board of directors of the fund had at a meeting held on August 24, 2018, approved in principle a one-time tender offer to repurchase up to 25% to 30% of its outstanding shares at 98.5% of NAV, subject to regulatory and other confirmations. The board determined that the fund would repurchase shares at 99.0% of NAV. No other changes to the previously announced terms and conditions of the tender offer were being made. Also, as previously announced, the tender offer was expected to be made in accordance with specific terms and conditions to be determined by the board and set forth in an offer notice and related letter of transmittal, which would be filed with the SEC as exhibits to a tender offer statement on Schedule TO. Shareholders of the fund were advised to read the offer notice and tender offer statement on Schedule TO and related exhibits when filed, since they would contain important information about the tender offer. The Taiwan Fund, Inc. (TWN) announced that on September 12, 24, and 26, 2018, the fund repurchased 5,000; 2,306; and 2,306 shares, respectively, under the fund s discount management policy. Franklin Limited Duration Income Trust (FTF) announced that its board of trustees approved a transferable rights offering. The offer to acquire additional common shares was to be made only by means of a prospectus, and the announcement did not constitute an offer to sell or a solicitation of an offer to buy any of the fund s securities. Each shareholder was to receive one transferable right for each common share held on the record date of September 21, Three rights plus the final subscription price per common share would be required to purchase one additional common share; however, shareholders who held fewer than three common shares on the record date would be entitled to subscribe for one common share. Fractional shares would not be issued. The subscription price would be determined based upon a formula equal to 92.5% of the average of the last reported sales price of the fund s common shares on the NYSE on the expiration date and each of the four preceding trading days. If, however, the formula price was less than 80% of the NAV per common share of the fund s common shares at the close of trading on the NYSE on the expiration date, then the subscription price would be 80% of the fund s NAV per common share at the close of trading on the NYSE on that day. Record-date shareholders who fully exercised their rights in the primary subscription would be eligible for an oversubscription privilege entitling these shareholders to subscribe for any additional common shares not purchased pursuant to the primary subscription, subject to certain limitations, allotment, and the right of the board of trustees to eliminate the oversubscription privilege. Holders of rights acquired in the secondary market could not participate in the oversubscription privilege. The rights were expected to trade when issued on the NYSE beginning on September 19, 2018, and the fund s common shares were expected to trade ex-rights on the NYSE beginning on September 20, The rights were expected to begin trading for normal settlement on the NYSE (FTF RT) on or about September 26, The offering was to expire at 5:00 p.m. Eastern Time on October 18, 2018, unless extended. RiverNorth Opportunities Fund, Inc. (RIV) announced that its board of directors authorized and set the terms of an offering to the fund s shareholders of rights to purchase additional shares of the fund. In this offering the fund would issue transferable subscription rights to its shareholders of record as of October 4, 2018, allowing the holders to subscribe for new shares of the fund. Record-date shareholders would receive one right for each common share held on the record date. For every three rights held a holder of rights could buy one new common share of the fund. Record-date shareholders who exercised their rights would not be entitled to distributions payable during October 2018 on shares issued in connection with the rights offering. The rights were expected to be listed and tradable on the NYSE under the ticker RIV RT. Record-date shareholders who fully exercised all rights initially issued to them in the primary subscription would be entitled to buy those common shares not purchased by other record-date shareholders. The subscription price per share would be determined based upon a formula equal to 95% of the reported NAV or 95% of the market price per share, whichever was higher on the expiration date. Market price per share would be determined based on the average of the last reported sales price of a share on the NYSE for the five trading days preceding (and not including) the expiration date. The subscription period was to expire on November 1, 2018, unless extended by the board. DWS Municipal Income Trust (KTF) and DWS Strategic Municipal Income Trust (KSM) each announced that its respective board of trustees extended the fund s existing open-market share repurchase program for an additional 12-month period. Each fund could continue 5

6 to purchase outstanding shares of beneficial interest in openmarket transactions over the 12-month period from December 1, 2018, until November 30, 2019, when the fund s shares traded at a discount to NAV. The amount and timing of the repurchases would be at the discretion of DWS Investment Management Americas, Inc. (DIMA), the funds investment advisor, and subject to market conditions and investment considerations. DIMA was to seek to purchase shares at prices that would be accretive to each fund s NAV. The authorization of the extension of the funds repurchase programs followed the previous repurchase programs, which commenced on December 1, 2017, and were to run until November 30, The results of repurchases under each fund s program appeared in the fund s shareholder reports. MERGERS AND REORGANIZATIONS Madison Strategic Sector Premium Fund (MSP) and Madison Covered Call & Equity Strategy Fund (MCN) announced that at a special meeting of shareholders of MSP and the annual meeting of shareholders of MCN the requisite shareholders of the funds approved the agreement and plan of merger pursuant to which MSP was to be merged with and into MCN and the transactions contemplated thereby. It was expected that the merger would be effective with the open of the NYSE on October 8, 2018, subject to all regulatory requirements and customary closing conditions being satisfied. Holders of MSP common shares were to receive newly issued MCN common shares. The aggregate NAV as of the close of trading of the NYSE on October 5, 2018, of MCN common shares received by MSP shareholders (including for this purpose fractional MCN common shares to which shareholders would be entitled) was to be equal to the aggregate NAV of the MSP common shares held by MSP shareholders as of such time. Fractional shares would be aggregated and sold on the open market, and MSP shareholders would receive cash in lieu of such fractional shares. OTHER BlackRock Advisors, LLC announced that the boards of directors/ trustees of 20 BlackRock taxable fixed income and equity CEFs authorized renewal of open-market share repurchase programs. Under each fund s current repurchase program each fund could repurchase, through November 30, 2018, up to 5% of its outstanding common shares (based on common shares outstanding on November 30, 2017) in open-market transactions. Pursuant to each board s renewal of the repurchase programs, commencing on December 1, 2018, each fund could repurchase up to 5% of its outstanding common shares (based on common shares outstanding on November 30, 2018) in open-market transactions through November 30, The repurchase programs sought to enhance shareholder value by purchasing fund shares trading at a discount from their NAV per share, which could result in incremental accretion to a fund s NAV. The funds that authorized the renewal of a repurchase program were as follows: BlackRock Energy and Resources Trust (BGR); BlackRock Enhanced Capital and Income Fund, Inc. (CII); BlackRock Enhanced Equity Dividend Trust (BDJ); BlackRock Enhanced Global Dividend Trust (BOE); BlackRock Health Sciences Trust (BME); BlackRock Enhanced International Dividend Trust (BGY); BlackRock Resources & Commodities Strategy Trust (BCX); BlackRock Science and Technology Trust (BST); BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI); BlackRock Taxable Municipal Bond Trust (BBN); BlackRock Core Bond Trust (BHK); BlackRock Corporate High Yield Fund, Inc. (HYT); BlackRock Credit Allocation Income Trust (BTZ); BlackRock Enhanced Government Fund, Inc. (EGF); BlackRock Floating Rate Income Strategies Fund, Inc. (FRA); BlackRock Floating Rate Income Trust (BGT); BlackRock Income Trust, Inc. (BKT); BlackRock Limited Duration Income Trust (BLW); BlackRock Multi-Sector Income Trust (BIT); and BlackRock Debt Strategies Fund, Inc. (DSU). The amount and timing of any repurchases under each fund s repurchase program were to be determined either at the discretion of the fund s management or pursuant to predetermined parameters and instructions subject to market conditions. There was no assurance that any fund would repurchase shares in any particular amounts. Aberdeen Total Dynamic Dividend Fund (AOD) announced that it postponed its 2018 annual meeting of shareholders scheduled to be held on September 19, It was anticipated that the annual meeting would be held before the end of October The fund announced that its 2018 annual meeting of shareholders was rescheduled for October 18, 2018, at 10:00 a.m. Eastern Time and would be held at the offices of Aberdeen Asset Management Inc. The record date for the annual meeting remained July 20, The purpose for postponing the annual meeting was to allow time for shareholder consideration of matters submitted by an activist hedge fund. The activist hedge fund (i) announced its intention to nominate its own candidate to the board of trustees of the fund and (ii) submitted a proposal to declassify the board for consideration at the annual meeting. More details on these matters were to be included within a new proxy statement to be mailed to shareholders in advance of the new annual meeting date. Shareholders of the fund were advised to disregard any form of proxy materials and card previously received from the fund. If shareholders already submitted a 2018 proxy card for the annual meeting, they would need to submit a new card even if their vote had not changed. Previously completed proxy cards were to be disregarded. John Hancock Financial Opportunities Fund (BTO) announced that its board of trustees voted to amend its current managed distribution plan, increasing the amount of its quarterly distribution by 50%. Under the plan the fund was to make quarterly distributions of an amount equal to $0.55 per share, an increase over the previous quarterly distribution of $ per share. This new amount would be paid quarterly until further notice. This new distribution amount equated to an annualized distribution rate of 5.56%, based on the fund s NAV of $39.59, and 5.69%, based on the closing share price of $38.69 as of August 31, Distributions under the plan were to consist of net investment income, net realized long-term capital gains, net realized short-term capital gains, and to the extent necessary return of capital. The fund intended to fund its distributions to the extent appropriate through realization of long-term capital gains when the distribution amount exceeded net investment income. The board of directors of Duff & Phelps Select Energy MLP Fund Inc. (DSE) announced it has approved certain modifications to the fund s nonfundamental investment policy and as a result a change in the name of the fund. The changes were to become effective on November 20, The fund was to change its investment policy 6

7 to invest under normal market conditions at least 80% of its managed assets in energy master limited partnerships (MLPs) and midstream energy companies not organized as MLPs. (Under its current investment policy the fund invests at least 80% of its managed assets in energy MLPs under normal market conditions.) Under the revised investment policy the fund was to consider investments in midstream energy companies to include entities that gather, process, store, market, and transport energy assets such as crude oil, natural gas, refined products, and natural gas liquids. These companies could be organized in any form, including as partnerships or C corporations. The fund was to continue to pursue its primary investment objective of seeking a high level of total return resulting from a combination of current tax-deferred distributions, growth of distributions, and capital appreciation. Reflective of the change in its investment policy, the fund was to change its name to Duff & Phelps Select MLP and Midstream Energy Fund Inc. It would continue to trade as DSE. Refinitiv All Rights Reserved. The Financial and Risk business of Thomson Reuters is now Refinitiv. Lipper FundMarket Insight Reports are for informational purposes only, and do not constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. No guarantee is made that the information in this report is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. For immediate assistance, feel free to contact Lipper Client Services toll-free at or via at LipperClientServices@thomsonreuters.com. For more information about Lipper, please visit our website at financial.tr.com or lipperalphainsight.com 7