| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.45 | -94 |
| Graham Formula | n/a |
Blue Planet Investment Trust plc (BLP.L) is a UK-domiciled, closed-ended balanced mutual fund managed by Blue Planet Investment Management Ltd. Listed on the London Stock Exchange, the fund invests globally across public equity and fixed income markets, targeting diversified sectors through equities, ETFs, bonds, and derivatives. With a top-down investment approach, it benchmarks performance against the FTSE 100 Index. Originally established in 1998 as Blue Planet International Financials Investment Trust plc, the fund caters to investors seeking exposure to a broad range of market capitalizations and asset classes. Despite recent financial challenges, including negative revenue and net income in FY2022, the fund maintains a strategic focus on fundamental analysis and derivative instruments to optimize portfolio returns. Its dividend yield of 35.15 GBp per share may appeal to income-focused investors, though its high debt-to-equity ratio warrants caution. Operating in the competitive asset management sector, Blue Planet distinguishes itself through a global mandate and flexible investment strategies.
Blue Planet Investment Trust presents a high-risk, high-reward proposition for investors. Its global diversified portfolio and use of derivatives offer potential for outsized returns, but FY2022 results (-£9.5M revenue, -£10M net income) raise concerns about performance sustainability. The fund's 0.22 beta suggests low correlation with broader markets, potentially providing diversification benefits. However, its £4.5M total debt against £58K cash reserves indicates significant leverage risk. The 35.15 GBp dividend appears attractive but may not be sustainable given negative earnings. Investors should weigh its active management approach against peers' passive strategies and monitor its ability to rebound from recent underperformance.
Blue Planet competes in the crowded UK investment trust space by differentiating through its balanced mandate (equities/fixed income) and global scope. Unlike sector-specific trusts, its diversified approach reduces concentration risk but may dilute outperformance opportunities. The fund's small £3.8M market cap limits economies of scale compared to larger rivals, potentially resulting in higher expense ratios. Its use of derivatives for portfolio optimization is a comparative advantage for sophisticated strategies but introduces complexity risks. Performance benchmarking against the FTSE 100 (rather than blended indices) may misalign expectations given its mixed-asset focus. The trust's Malta domicile could offer tax efficiencies but may concern some UK investors. While its top-down fundamental analysis approach is common among active managers, Blue Planet's ability to consistently add alpha remains unproven given recent losses. Its closed-end structure provides stable capital but trades at the mercy of market discounts/premiums to NAV.