Q: Is BGI.un a good buy currently?
Brookfield recently closed down a fund, how much of a loss would the holders of the fund take?
Thank you
Brookfield recently closed down a fund, how much of a loss would the holders of the fund take?
Thank you
5i Research Answer:
When a fund closes, assets are sold and distributed to unit holders. This does not automatically mean a loss, as it depends of course on when units were bought by investors. Investors get net asset value back, minus trading commissions and closing fees. BGI we think is not that great. Five year return is less than 1%. It lost money in 2022, 2015 and 2020. It is trading at a 3% discount to net asset value. Investors are attracted to its high yield. Its holdings are fine and it 'should' do better as interest rates peak.