BlackRock Resources & Commodities Strategy Trust to be Added
The recent buyout of Checkpoint Systems (CKP) and liquidation of closed-end fund Strategic Global Income (SGL) raised the cash position in the SMA Portfolio to over 15 percent. I plan on adding BlackRock Resources & Commodities Strategy Trust (BCX) to the portfolio; provided the set limit order price of $7.79 is reached.
The allocation to BCX, in the event it falls to the order price, will be approximately 5 percent. BCX is a closed-end fund trading at a discount to Net Asset Value (NAV) of about 16% and sports a reasonable annual expense ratio of slightly over one percent. BCX holdings include major integrated oil companies, along with a variety of metals and mining companies and other commodities producers.
It appears an enduring bear market bottom has been achieved in the commodities markets. However, there could be a major hiccup if Chinese growth slows appreciably.
6/10/16 6:09 AM Update: The limit order set at $7.79 was not executed. Stock futures are currently down significantly. I am canceling the order and will enter a revised limit order sometime today.
6/10/16 10:16 AM Update: I have revised the limit order to buy BCX down to $7.75 in light of recent market turmoil.
6/10/16 3:40 PM Update: BCX was purchased at $7.75 approximately 40 minutes ago.
Disclosure: I hold BCX in another account.
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