DMA - BXSY: A Unique CEF But A Poor Performance History

2024-07-15 14:07:55 ET

Summary

• Bexil Investment Trust is a closed-end fund with a 93.90% total return over the past ten years, despite a 19.82% share price decline.
• The BXSY CEF focuses on dividend-paying value stocks, which have substantially underperformed growth stocks over the past decade.
• The fund's holdings are very different from most other funds, which could be attractive to anyone who is seeking to improve their overall diversification.
• Bexil Investment Trust employs low leverage, pays a 7.70% yield, and trades at a 36.26% discount to net asset value, making it a unique investment option.
• There is no reason to think that the fund's performance will improve going forward, but it does appear stable and the distribution is fully covered.

The Bexil Investment Trust (BXSY) is a closed-end fund, or CEF, that income-focused investors can employ as a method of achieving their goals. This is not an especially well-known fund, despite being created back in 1998. This may partly be due to the fund’s somewhat poor performance history, as its share price has declined by 19.82% over the past ten years:

This was a period of time in which the S&P 500 Index ( SP500 ) and most other assets experienced tremendous appreciation. As we can see above, the S&P 500 Index itself increased in price by 183.86% over the period, which is almost a tripling. It is certainly not unexpected for a fund that underperforms to such a degree to not be especially well-followed in the investment community....

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