The Blue Sky Alternatives Access Fund Ltd (ASX: BAF) share price is up over 5% today on news that its management will shift to Wilson Asset Management. Its listed name will soon become Wilson Alternative Assets.
The company announced the outcome of its extraordinary general meeting (EGM) where 93% of shareholders voted in favour to terminate the existing management agreement with Blue Sky in favour of Wilson Asset Management.
Wilson Asset Management was founded in 1997 by highly respected investor Geoff Wilson. Wilson Asset Management manages over $3 billion on behalf of investors across its many listed investment companies including WAM Active Limited (ASX: WAA), WAM Capital Limited (ASX: WAM), WAM Global Ltd (ASX: WGB), WAM Leaders Ltd (ASX: WLE), WAM Microcap Ltd (ASX: WMI), WAM Research Limited (ASX: WAX).
What does the Blue Sky Alternatives Access Fund invest in?
The fund invests in ‘alternative assets’. This comprises asset classes such as real assets, private equity, real estate and private infrastructure.
Geoff Wilson stated during the EGM, “this gives investors a return that is uncorrelated to equity markets with lower volatility and diversification, and also gives investors exposure to potentially innovative investment products,”.
Therefore, for those of us who mainly own Australian equities, it could provide a level of diversification to a portfolio.
Is BAF a buy?
I believe the current price presents a buying opportunity as the $0.92 share price at the time of writing trades at a significant discount to the pre-tax net tangible assets of the trust, which was $1.0863 per share as at 31 July.
BAF also goes ex-dividend tomorrow, with the dividend to be paid of $0.03 per share.