Nontraded BDCs post a 12.95% total return for 2016, beating the S&P 500

April 17, 2017

Nontraded BDCs post a 12.95% total return for 2016, beating the S&P 500


April 17, 2017 | Blue Vault

Nontraded BDCs have had one of the best years yet, even in the midst of sluggish capital raise. The average nontraded BDC total return in 2016 was 12.95%, with the highest performer producing a 28% gain.

Likewise, the S&P 500 had a return of about 12% if dividends were reinvested.

“This type of performance reinforces the validity of BDCs as an important investment type in a portfolio”, says Jared Schneider, managing partner of Blue Vault. We hope that the advisory community and investors will pay attention to the results. The herd mentality of shying away from nontraded BDCs has hurt investors because they have missed out on one of the greatest performance years yet.

The disparity between the top performer and bottom performer was about 27%, so make sure you are doing your research on the funds and management before selecting an investment. To find out more about nontraded BDCs, see our Nontraded BDC Industry Review research.

The first four nontraded BDC individual reports from the Q4 2016 Nontraded BDC Industry Review have been posted to Blue Vault’s website:

  1. Business Development Corporation of America
  2. CION Investment Corporation
  3. Corporate Capital Trust II
  4. FS Investment Corporation III

You may access these pages by logging into the Blue Vault Website and clicking on “Subscriber-Only Research”, “Nontraded Business Development Companies”, then “BDC Individual Reports” links on the toolbar at the top of the home page. Scroll down to 2016, then 2016 Q4.

If you are already logged in, click here to go directly to Subscriber-Only Research.

To login now, click here

Additional pages will be posted daily over the couple of weeks and regular Special Announcements will be sent to inform you. The full BDC review will be published the week of May 1st.

Blue Vault research is available to paid Subscribers only. If you do not have a current subscription, call Dawn McDaniel at 877-256-2304, Option 2 to see how you can get access today!

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