If You Invested in BEXIL INVESTMENT TRUST (XBXIX)

XBXIX is the net asset value (NAV) symbol for Bexil Investment Trust, a closed end fund that focuses on income-oriented investing. According to company disclosures, the Fund’s primary investment objective is to seek high current income, with capital appreciation as a secondary objective. XBXIX represents the Fund’s per-share net asset value as reported on NASDAQ, while the Fund’s shares trade under a separate stock symbol on the OTC market.

The Fund states that it seeks to achieve its objectives by investing, under normal circumstances, at least 50% of its total assets in income generating equity securities. As a closed end fund, Bexil Investment Trust’s shares can trade at a premium or a discount to the NAV reported under the XBXIX symbol. The relationship between market price and NAV is influenced by factors such as investor sentiment, economic conditions, and security-specific developments.

Business focus and investment approach

Bexil Investment Trust describes itself as a closed end fund designed primarily for long term investors rather than short-term trading. Its disclosures emphasize that there is no assurance the Fund’s investment objectives will be attained and that past performance does not guarantee future results. The Fund notes that its NAV will typically fluctuate with price changes of its portfolio securities, and that these fluctuations can be greater when the Fund uses leverage.

The Fund highlights that distributions may be paid from net investment income, net realized capital gains, return of capital, or a combination of these sources. It also explains that the character and amount of distributable income for tax purposes can only be finally determined at the end of its tax year, and that Section 19(a) notices are provided as estimates rather than tax reporting documents.

Premiums, discounts, and trading characteristics

In its public communications, Bexil Investment Trust notes that shares of closed end funds frequently trade at a discount from their NAV. This trading behavior is described as a risk that is separate from the risk that the Fund’s NAV may decrease as a result of investment activities or other events. The Fund indicates that neither it nor its investment manager can predict whether shares will trade at, below, or above NAV at any given time.

The Fund also points out that when its NAV per share is above the market price, investors may have an opportunity to purchase shares at a discount to their underlying value. However, it cautions that any premium or discount can change over time and that there is no assurance a premium will be sustained or that shares will not trade at a discount thereafter.

Distributions and Section 19(a) notices

Bexil Investment Trust regularly announces quarterly distributions and, when required, issues Section 19(a) notices under the Investment Company Act of 1940. These notices describe the estimated sources of distributions, such as net investment income, capital gains, and return of capital. The Fund repeatedly cautions that shareholders should not draw conclusions about its investment performance from the amount of distributions or from the terms of its distribution policy.

The Fund explains that a return of capital may occur when money originally invested in the Fund is paid back to shareholders and that such distributions reduce a shareholder’s tax basis in the shares. It emphasizes that return of capital should not be confused with yield or income and that the final tax character of distributions is reported to shareholders on Form 1099-DIV.

Name and symbol history

In a public announcement, the Fund reported that it changed its name from Dividend and Income Fund to Bexil Investment Trust. At the same time, it stated that its stock symbol changed from DNIF to BXSY and its NAV symbol changed from XDNIX to XBXIX. The Fund indicated that these changes were made, among other reasons, to increase awareness of the Fund. It also stated that there were no changes to its investment objectives, principal investment strategies, or portfolio management as a result of the name and symbol changes.

Risk considerations and investor information

The Fund’s disclosures highlight that investment products, including shares of closed end funds, involve investment risk, including possible loss of principal and fluctuation in value. It notes that its shares are not federally or FDIC insured and are not deposits or obligations of, or guaranteed by, any financial institution. The Fund encourages prospective investors to consider its investment objectives, risks, charges, and expenses carefully and refers readers to its filings with the U.S. Securities and Exchange Commission, including annual and semi-annual reports, for more detailed information.

Because XBXIX is the NAV symbol rather than the trading symbol, investors researching XBXIX are typically focused on the Fund’s underlying net asset value, distribution characteristics, and the relationship between NAV and market price. The Fund’s communications underscore that it is intended primarily for long term investors and that its market price is influenced by supply and demand in addition to portfolio performance.