Does MM like BVS &/or JEPI?
Can I have your thoughts on BVS following the capital raise which has seen its share price halve. Also do you like JEPI as an income stock? Thanks
The Latest Q&A
Answer
Hi Ian,
Bravura (BVS) 43.5c – unfortunately after watching BVS collapse from over $5 to below 50c I see no reason to get interested in the company even after their $80mn capital raise at 40c – a classic too hard situation.
JP Morgan Equity Premium Income Active ETF (JEPI) $48.99 – this fund is an actively managed fund that generates income by selling options on U.S. large cap stocks. The fund plans to invest in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income. The trouble is the VIX is low meaning option premiums are not exciting hence its not on our radar at present.
We would encourage readers to look at our Market Matters Active Income Portfolio which has returned 18.68% pa over the last 3 years – – around 6.5% of the return is income, with significantly less volatility than the underlying market, which is what the JP Morgan ETF is looking to achieve.
