DISCOUNT STATISTICS OF CLOSED-END FUNDS UPDATE FOR …

Discount Statistics of Closed-End Funds Update for the First Quarter 2018 April 2018 Page 1

DISCOUNT STATISTICS OF CLOSED-END FUNDS UPDATE FOR THE 1st QUARTER 2018

This article will update the Highland Global study, "Discount Statistics of Closed-end Funds," (originally published in November 2005 and updated quarterly) for data relating to the first quarter of 2018. The original article with more details regarding discount statistics of closed-end funds is available at . Historic releases of our research can be accessed from our website.

All facts and data as set forth in this report were obtained from sources considered to be reliable. However, Highland Global assumes no liability for the accuracy of the information provided to us by others. Highland Global assumes no responsibility for any liability for damages of any kind resulting from reliance on this report by the reader or any other party. Although we have exerted considerable diligence and applied our best efforts in constructing this document, immaterial anomalies, if any, may arise. Even so, we are confident that our overall results would still fall within a materially consistent conclusion. This report is not to be construed, directly or indirectly, as a recommendation to invest, divest or to lend. Highland Global makes no representations or warranties that the result/research set forth in this report will be accepted by any other third party, including any regulatory or government body federal, state, or local.

Google's Beta Data & Barron's Closed-End Fund Data

Each quarter, Barron's Online () reports statistics on publiclytraded closed-end funds. The statistics reported include the discount (or premium) of the market price from the fund's net asset value (NAV), the 52-week average discount or premium, the fund's objective, and various return measurements, etc. Google (finance) reports various statistics on these funds, including metrics of beta. Highland Global then calculates the discount range, average, median, and standard deviation and reports these figures based on metrics such as the total data population, beta ranges, fund objectives, etc. The following table provides the summary of the analysis of closed-end funds with discounts to NAV during the first quarter 2018.

Discount 52 Wk Avg Beta

3/31/2018 Discount

AVERAGE

8.5%

7.3% 0.49

MEDIAN

8.6%

7.0% 0.48

STANDARD DEVIATION

4.4%

5.1% 0.51

COUNT

443

423

394

MIN

0.1%

0.0% 2.27

MAX

28.8%

58.8% -0.28

Source: Based on data obtained from and finance

HIGHLAND GLOBAL MYRTLE BEACH, SC ORLANDO, FL WASHINGTON, D.C.



Discount Statistics of Closed-End Funds Update for the First Quarter 2018 April 2018 Page 2

The following table provides the average and median discounts for the entire population and for those closed-end funds with reported betas for given quarters.

Closed-End Fund Discount Statistics

As of 3/31/2018

As of

As of

12/31/2017 9/30/2017

As of 6/30/2017

Average Discount of Entire Population

8.5%

7.3%

6.5%

Median Discount of Entire Population

8.6%

7.2%

6.3%

Average Discount of Closed-End Funds with Reported Betas

9.0%

7.4%

6.7%

Median Discount of Closed-End Funds with Reported Betas

9.1%

7.5%

6.5%

Based on calculations by Highland Global from data obtained from and finance

6.7% 6.7% 6.9% 6.8%

The following table provides average and median discounts for the entire population and for those closed-end funds with reported betas for the fifty-two week periods.

Closed-End Fund Discount Statistics

52-week

52-week 52-week

Average

Average Average

3/31/2018 12/31/2017 9/30/2017

Average Discount of Entire Population

7.3%

7.4%

7.6%

Median Discount of Entire Population

7.0%

6.9%

7.4%

Average Discount of Closed-End Funds with Reported Betas

7.5%

7.5%

7.8%

Median Discount of Closed-End Funds with Reported Betas

7.2%

7.0%

7.4%

Based on calculations by Highland Global from data obtained from and finance

52-week Average 6/30/2017

7.9% 7.5% 7.9% 7.5%

The following table provides the count for the number of funds within each objective.

Closed-End Fund Distribution 3/31/2018

Fund Objective

Count %

Capital Appreciation

2 0.5%

Convertible Securities

10 2.3%

Emerging Markets

35 8.1%

Fixed Income

96 22.2%

Global

19 4.4%

Growth

9 2.1%

Growth & Income

12 2.8%

Income & Preferred Stock

0 0.0%

Muni Bonds

156 36.0%

Pacific excluding Japan

3 0.7%

Sector Equities

41 9.5%

World Income

17 3.9%

Uncategorized

33 7.6%

Total

433 100.0%

Based on calculations by Highland Global

HIGHLAND GLOBAL MYRTLE BEACH, SC ORLANDO, FL WASHINGTON, D.C.



Discount Statistics of Closed-End Funds Update for the First Quarter 2018 April 2018 Page 3

The following table illustrates the descriptive statistics for each group of fund objectives.

Average & Median Beta & Discounts by Objective

Objective

Capital Appreciation Convertible Securities

Emerging Markets Fixed Income Global Growth

Growth & Income Income & Preferred Stock

Muni Bonds Pacific excluding Japan

Sector Equities World Income Uncategorized

Average Discount 3/31/2018

10.0% 8.3% 11.2% 7.5% 8.8% 10.0% 9.4% 5.7% 9.5% 8.8% 7.1% 9.1% 6.4%

Average Average Discount Beta 52-week

10.1% 1.66 6.5% 0.88 12.3% 0.91 6.2% 0.42 7.7% 0.94 13.1% 0.98 8.9% 0.96 5.5% 0.54 6.3% -0.04 8.2% 0.76 7.9% 0.86 7.4% 0.60 6.7% 1.24

Median Discount 3/31/2018

10.0% 9.8% 11.3% 7.4% 9.0% 9.4% 8.6% 4.6% 10.1% 9.2% 7.1% 9.6% 5.7%

Median Median Discount Beta 52-week

10.1% 1.66 7.8% 0.87 10.9% 0.91 6.4% 0.45 7.8% 1.00 11.2% 1.17 9.4% 0.96 4.2% 0.31 6.3% -0.05 7.8% 0.83 6.5% 0.90 8.4% 0.60 6.9% 1.23

Based on calculations by Highland Global from data obtained from and finance

The descriptive statistics presented in the previous tables may be useful in helping the analyst determine an appropriate baseline discount from which adjustments may be made to determine the final discount applicable to the minority interest being valued. In the end, however, the analyst always must use reasoned and informed judgment in determining the appropriate baseline discount and the adjustment from that baseline to reflect the particular risk characteristics of the minority interest being valued.

HIGHLAND GLOBAL MYRTLE BEACH, SC ORLANDO, FL WASHINGTON, D.C.



Discount Statistics of Closed-End Funds Update for the First Quarter 2018 April 2018 Page 4

Barron's Closed-End Fund Data

Barron's Closed-end Fund Data Fund Name

Ticker

Central Secs (x) GuggenhEnhEq Ellsworth G&I Fund Ltd Bancroft Fund Ltd AGI Eqty & Conv Inc Advent Clay Conv Secs AdvntClymrFd PutnamHiIncBd AGI Dvs Inc & Conv AllianzGI Con & Inc 2024 Calmos Dyn Conv and Inc Gabelli Conv Sec (x) Cdn Wrld Fd Ltd (y) Cdn Genl Inv (y) United Corps Ltd (xy) Economic Inv Tr (xy) MS ChinaShrFd (J) Herzfeld Caribb MS Asia MexicoEqandIncmFd Mexico LatAmDiscy New Ireland Templeton Dragon MS EmgMkt Central and Eastern Euro (x) Japan Smaller Cap Aberdeen Japan Equity Taiwan India Fund Templeton Em Mkt MS India Aberdeen Chile ISL Aberdeen Singapore New Germany (x) European Equity Fund Inc (x) Swiss Helvetia China Aberdeen Latin Amer Eq (x) Aberdeen EM SmCo Opptys Aberdeen Indonesia AberdeenGreaterChina FirstTrAbEmergOp Voya Em Mkts Hi Div Eqty FirstTr Dyn Euro Eq Inc

CET GPM ECF BCV

NIE AGC AVK PCF ACV CBH CCD GCV T.CWF CGI UNC.TO EVT.TO CAF CUBA APF MXE MXF LDF

IRL TDF MSF CEE JOF JEQ TWN IFN EMF

IIF CH ISL SGF GF EEA SWZ CHN LAQ ABE

IF GCH FEO

IHD FDEU

Objective

Discount 52 Wk Avg Beta 3/31/2018 Discount

Capital Appreciation Capital Appreciation Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities Convertible Securities

Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets

-18.2 -1.8

-11.3 -14.5

-9.8 -11.5 -11.2

-6.1 -0.2 -5.3 -4.8

-28.8 -27

-16.2 -14.8 -13.2 -13.2 -13.2 -12.5 -13.3 -13.1 -11.2 -11.4 -12.3 -11.7

-13 -13.3 -11.3 -11.7

-7.8 -8.1 -7.9 -9.5 -10.3 -9.6 -8.4 -7.7 -7.7 -7.8 -6.1 -9.9 -2.1 -2.5

-17 -3.1 -10.3 -10 -9.4 -8.5 -8.5

-7 -4.5 -2.7 -2.7 -1.5 -35.7 -28 -26.1 -24.2 -14.2 -14.2 -12.6 -12.6 -12 -12 -11.6 -11.6 -11.4 -11.3 -11.1 -11.1 -11 -10.9 -10.5 -10.4 -10.4 -10.2 -10.2 -10 -9.9 -9.3 -9.3 -9.3 -9.1 -8.9 -8.7 -8.2 -6.4 -4.2

2.27 1.04 0.87 0.70 0.99 1.03 1.03 0.71

0.81

1.88 0.37 0.49 0.89 1.28 0.94 0.83 0.88 1.02 0.67 0.95 0.96 1.03 0.76 0.77 0.66 1.00 1.07 0.93 -0.35 0.59 0.91 1.11 0.81 0.68 0.95 1.06 -7.21 0.85 0.92 0.83 1.12

HIGHLAND GLOBAL MYRTLE BEACH, SC ORLANDO, FL WASHINGTON, D.C.



Discount Statistics of Closed-End Funds Update for the First Quarter 2018 April 2018 Page 5

AbrdnAusEq Franklin Univ (x) NeubHgYldStrt InfLnkSec&Income InfLnkOpp&Income Prudential Gl Sht Dur HY WstAstGlHiInco BR Credit Alloc Inc Western Asset Hi Inc Opp InvHighIncTrII (x) Prudential Sht Dur HY BR Corporate HY FirstTrStrHiInc2 InvDYCrOpp Ares Dynamic Crdt Alloc Western Asset Hi Yld D O AllianceBernGlHiIncm EVLmtDurIncm Nuveen Global High Inc PioneerHilncmTr Nuveen Credit Strat Inc Wells Fargo Income Oppty First Trust Mtge Inc BlackRock Mlt-Sctr Inc NexPointCreditStrat BR Debt Strategy (x) MFS Multimkt (x) MFS Charter (x) PionrDivHiIncTr WstAstHIF II InvSnrIncTr (x) Voya Prime Rate Trust (x) Apollo Tactical Income Nuveen Multi-Market Inc (x) Wells Fargo Multi-Sector EVSnrIncm (x) New Amer Hi Inc (h) First Tr Hi Inc Lng/Shrt EtnVncFltRteIncPlus BlackRock Ltd Dur Inc Brookfield Real Asst Inc CSAM Income Fd BlckRk Income (x) Apollo Senior Floating KKR Income Opportunities Duff&Ph Util Cor (x) BlRck Core Bond Blackstone / GSO Strat FT/Sr Fltg Rte Inc 2 Aberdeen Inc Credit Str

IAF FT NHS WIA WIW GHY EHI BTZ HIO VLT ISD HYT FHY VTA ARDC HYI AWF EVV JGH PHT JQC EAD FMY BIT NHF DSU MMT MCR HNW HIX VVR PPR AIF JMM ERC EVF HYB FSD EFF BLW RA CIK BKT AFT KIO DUC BHK BGB FCT ACP

Emerging Markets Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income

-1.6 -13.7 -12.5

-12 -11.6 -14.1 -13.2 -11.4 -11.9 -11.8 -13.4 -11.2 -12.9 -10.3

-8.7 -10.7 -12.3 -11.7 -10.4 -10.7 -11.9

-11 -8.7 -11.5 -10.5 -7.7 -9.3 -9.1 -11.9 -11.6 -10.2 -8.3 -10.2 -10.1 -7.7 -5.7 -11.8 -12.8 -6.9 -10.1 -9.8 -8.9 -8.7 -5.9 -8.9 -8.3 -8.5 -6.3

-6 -7.3

-3.4 0.86 -12.2 0.58 -11.2 0.65 -11.2 0.30 -11.2 0.25 -10.6 0.37 -10.3 0.68

-10 0.32 -9.9 0.45 -9.9 0.58 -9.6 0.37 -9.6 0.60 -9.3 0.71 -9.2 0.58 -9.1 0.51

-9 0.48 -8.9 0.32 -8.8 0.49 -8.8 0.91 -8.7 0.50 -8.6 0.54 -8.6 0.64 -8.5 0.15 -8.3 0.41 -8.3 0.86 -8.3 0.47 -8.2 0.52 -8.2 0.46 -8.1 0.56 -8.1 0.66 -8.1 0.48 -8.1 0.35

-8 0.41 -7.8 0.37 -7.8 0.31 -7.8 0.48 -7.4 0.62 -7.3 0.52 -7.3 0.46 -7.2 0.40 -7.2 -7.2 0.54 -7.1 0.07 -7.1 0.48 -6.9 0.68 -6.9 0.07 -6.4 0.15 -6.4 0.60 -6.4 0.42 -6.3 0.83

HIGHLAND GLOBAL MYRTLE BEACH, SC ORLANDO, FL WASHINGTON, D.C.



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