Aberdeen Diversified I&G Trust PLC Edison review on Aberdeen Diversified I&G Trust

TIDMADIG

Aberdeen Diversified I&G Trust PLC

27 September 2019

London, UK, 27 September 2019

Edison issues review on Aberdeen Diversified Income and Growth Trust (ADIG)

Aberdeen Diversified Income and Growth Trust (ADIG) continues to progress towards full implementation of its strategy, aiming to achieve attractive capital and income returns (five-year target of Libor +5.5% pa, net of fees) from a widely diversified multi-asset portfolio, including a significant allocation to less liquid, longer-term investments that individual investors would be unlikely or unable to access. Portfolio managers Mike Brooks and Tony Foster at Aberdeen Standard Investments (ASI) say half the funds committed to these long-term strategies have now been drawn, with the pace of investment from underlying managers stepping up over the summer. As the portfolio develops towards its intended shape, there is scope for the current wider-than-average discount to narrow materially. ADIG's shares have an FY19 prospective yield of 5.0%.

At 26 September 2019, ADIG's shares traded at a 9.2% discount to cum-income NAV. While this was narrower than the recent one-year high of 11.8%, it is wider than both short- and long-term averages (range of 3.2% to 4.8%). With disappointing performance from holdings in insurance-linked securities and litigation finance now arguably fully reflected in the price, there is scope for the discount to narrow as the portfolio progresses. Meanwhile, the shares yield an attractive 5.0% (prospective).

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September 27, 2019 10:43 ET (14:43 GMT)