BGR fund foregoes dividend, keeps cash for `opportunities’

BGR Precious Metals (TSE), the only closed end gold investment fund to survive the recent slump in bullion prices, recently cancelled its quarterly dividend. The 25 cents dividend was scheduled to be paid April 24.

Dundee Capital, the company that manages the fund with advice from Cavelti Capital Management and N.M. Rothschild Asset Management Ltd., says the decision was taken in view of the opportunities available in the precious metals markets.

Dundee also said that after paying out more than $6 million in quarterly dividends last year, BGR’s net assets had fallen to $49.1 million on January 31, from $50.2 million the previous year.

During that period, the market value of a portfolio consisting of 58% U.S. and Canadian gold equities, 13% gold bullion and 8% cash, had increased by $3.8 million. On January 31, the net asset value per BGR Prescious Metals share stood at $8.25, compared to $8.42 a year earlier. The shares traded recently at $5.88 in a 52-week range of $8.63 and $5.75.

BGR recently went ahead with a normal course issuer bid for up to 594,818 Class A Shares (representing 10% of the public float) via the Toronto and Montreal exchanges. There are currently 5.9 million BGR shares outstanding. The bid commenced April 17.