Real Estate Credit Investments (RECI), which is effectively a split-capital investment fund that invests in mortgage-backed securities, continues to motor along nicely.
In the first quarter of 2013-14, its net asset value stayed almost constant at 150p a share, while its managers say there are plenty of investment opportunities in the offing. The best news is that 15 of the bonds in the company's £95m fund are expected to redeem in full shortly. As at the end of June, these 15 had a market value of £9.1m but a redemption value of £11m, implying a 20 per cent gain for RECI if they are repaid in full. Moves such as those add spice to RECI's shares and should keep the price ticking up. Meanwhile - and equally important - the shares still offer a nice dividend yield.
