Core Insights - The Bexil Investment Trust has achieved a total return of 93.90% over the past ten years, which is significantly lower than the S&P 500 Index's return of 183.86% but better than its price performance alone [3][22] - The fund currently offers a yield of 7.70%, which is attractive compared to the S&P 500 Index's yield of 1.30%, but it ranks in the bottom half among its peers [3][19] - The fund's unique portfolio consists primarily of common stocks, with a focus on basic materials and financial firms, differing from the technology-heavy holdings of many other funds [12][20] Fund Performance - The Bexil Investment Trust's share price has declined by 19.82% over the past decade, indicating underperformance relative to most of its peers [8][9] - Despite the share price decline, the fund has managed to cover its distributions through net realized gains and net investment income, reporting a total investment income of 12,788,431 for the year ending December 31, 2023 [17][18] - The fund's net asset value has increased by 7.94% since the last financial report, suggesting it is currently covering its distributions effectively [18] Portfolio Composition - The fund's portfolio is heavily weighted towards common stocks (108.34%), with minimal allocations to corporate bonds (0.04%), master limited partnerships (0.44%), and preferred stocks (1.25%) [11] - The largest holdings include companies from diverse sectors such as steel production, banking, and retail, which may provide diversification benefits compared to more common technology-focused funds [12][13] - Some of the fund's largest positions do not pay dividends, which could limit income generation, but others, like U.S. Bancorp, offer reasonable yields [27][28] Leverage and Valuation - The Bexil Investment Trust employs a low leverage ratio of 10.00%, which is below the preferred maximum of one-third of assets, indicating a conservative approach to leveraging [15][29] - Shares are currently trading at a 36.26% discount to net asset value, which is consistent with the average discount over the past year and suggests an attractive valuation [19][20]
BXSY: A Unique CEF, But A Poor Performance History