BlackRock’s ‘Global Opportunities Equity Trust’ (BOE) Has Become A BlackHole.

Anura Guruge, June 8, 2013.

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by Anura Guruge


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boeblackhole

Click to ENLARGE. From ‘marketwatch.com’.

boertncap1a

Click to ENLARGE. From Fidelity.


Once we knew, for sure-sure, that the Fed was going to put an end to QE in October BOE, on paper, looked like a good play for some decent ‘high yield’ (in addition to the likes of BJBHX etc.) until we entered a new chapter of higher interest during the later part of 2015.

Well, of course, you have to make up your own mind but BOE, to my eyes, does not look healthy. The ETF price, after recovering from the October Fed meeting swoon, doesn’t seem to be going anywhere. The NAV too seems to be stagnating. Yes, there was the extraordinary, ad hoc double dividend in October. That was nice and made up for some of the drop in share value. But today on a hunch I happened to go and check where the distributions were coming from. The bottom chart. That was kind of scary and I was disquieted. No dividend income at all? How is that possible in 2014? I seem to trip over dividends all over the place. So how come BOE claims it hasn’t had any since Q3. Well that was a red flag for me. There are plenty of other options. So I have had it with BOE. Just thought I would let YOU know in case you were not aware that 100% of the current distributions is via ‘Return of Capital’.

Happy Holidays.