tirsdag den 6. juni 2017

The fund with a 6.5% yield that is trading on a 9% discount

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DAILY BULLETIN
Tuesday 6 June 2017
The fund with a 6.5% yield that is trading on a 9% discount
by Nick Sudbury | Funds | 6 mins. to read
Funds
A few weeks ago I wrote about a buying opportunity for CATCo Reinsurance Opportunities, which is a highly unusual fund that invests in catastrophe insurance bonds. A similar opening has now become available on the other investment trust that provides exposure to this area, the Blue Capital Alternative Income Fund (BCAI).

BCAI was launched in December 2012 and gives investors access to the global catastrophe reinsurance market, an alternative asset class whose returns have been largely uncorrelated to those of more mainstream areas including equities and bonds. At the end of May it changed its name from the Blue Capital Global Reinsurance Fund.

The analysts at QuotedData have recently initiated coverage and they say in their report that the fund offers an alternative source of income with a yield of 6.5% and quarterly dividends. Most investment trusts with high yields are trading on substantial premiums to net asset value (NAV), whereas BCAI is currently available on a discount of 9%.

 
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