Abrdn Diversified Income... Share Discussion Threads

[mwj1959] 24/4/2024 09:24

Unfortunately too many boards are heavily influenced / guided by their investment managers.

[genista71] 23/4/2024 19:58

It was the idiot chair who permitted "exotic investments" when it was obvious that would take the fund to a wide discount. Even worse giving that remit to such a useless manager. The corporate governance on ADIG is a bad as it gets.

[mwj1959] 23/4/2024 17:43

The Chairman is more qualified, based on her investment experience, to be in that job than many others in similar roles. However, I would agree that this experience hasn't necessarily been used to good effect. And its a very hostile environment for ITs investing in unquoted "exotic" assets. They're not the only ones to be struggling with large discounts etc.

[sll] 22/4/2024 19:04

I will defend the managers and the Chair. IMHO, the above negative comment is either sorely mistaken? or a baseless slur?

[hugepants] 22/4/2024 17:02

Thick as mince? That's pretty damning. I'll have to re-examine the investment case based on this new information.

[genista71] 22/4/2024 14:24

Im telling you the manager is hopeless as is the board especially the chair person who is as thick as mince..this unwind will not go well

[chucko1] 22/4/2024 13:02

Almost 50% discount on remaining assets (the tricky ones) allows for a lot of this sort of stuff. There will be further mishaps, but 50% for what remains is too generous. Additionally, the NAV has become to enter more calm waters, or at least statistically.

[cousinit] 22/4/2024 12:10

I presume a strategy like that will have a good chunk of gearing. If you think you're good at something, then why not give it a shot in the arm?

Can't imagine too many abrdn strategies are attracting any new monies so could also be a switch in pricing basis.

[cc2014] 22/4/2024 11:34

As I read it they haven't sold it. It's just been marked to market which begs the question of how a ABRDN does their maths if they are reducing the value of the fund in one quarter by 20%. I cannot see that as right and assume the carrying value has been too high for some considerable time.

Shocking whatever the reason.

But presumably in the NAV now and has been for some time.

[hugepants] 22/4/2024 11:15

Selling a chunk of property in one go in this market was never going to end well! That's the downside to winding up part of the portfolio quickly. They wont have got great prices for the listed alternatives either. Probably had to sell these at near market lows. On the positive side the NAV is probably not going lower, near term anyway (income to accrue), and they can take their time with the private market stuff.

[tiltonboy] 22/4/2024 10:59

March factsheet out. Most of the public positions have been exited with the funds being held in near-cash situations.

A huge write-down (20%) in the European Residential Opportunities fund is the shocker!

[tiltonboy] 18/4/2024 14:26

Looks like they have stopped issuing factsheets and holding summaries which doesn't help

[genista71] 12/4/2024 10:46

Cant trust this lot, neither the board nor the manager

[sll] 09/4/2024 10:22

Attended AGM/GM 27/2/24 and spoke with a couple of ADIG Directors, after the formal parts, which I supported. Impressed on them that 'time is indeed money'. The sooner they liquidate positions, the lower the value that may be attainable. When they part with the easier to sell 'more liquid' holdings, as detailed to the meeting, the entirety of that circa 30% discount will (unless it re-rates) transfer to the 'less liquid' positions. So, If we have 106p? NAV now and an share price of (say) 74p (being 30% discounted) if (say) 24p (of undiscounted liquid assets) can be realised sooner, at close to par, then the NAV moves down to circa 82p and the post-capital redemption share price might move down to circa 50p? (74-24) taking it down to a 39% discount. There are ZERO guarantees here, but a future upwards re-rating may be entirely conceivable? as 'more time' is allowed for the less liquid off-market positions to mature, closer to (or even above stated NAV?)as the Board conceives 'may be possible'. So, I'd prefer to wait longer, rather than settle for less sooner, and privately expressed that view.

[adae] 09/4/2024 06:51

@grahamg8, you rightly mention the downside risks, but there's also upside risk. The private holdings may come out either at NAV or higher, with a few more years of investment growth behind them.

That which goes at a discount will be mainly due to being sold early - leading to earlier returns, and hence a better calculation.

[markth] 08/4/2024 18:00

Yes grahamg8 we are in violent agreement. I note also (and this may be relevant) that there is a negative correlation between discount and investment trust size at the moment. Those trusts with NAV under 100m seem particularly worse affected. Having arbed a few wind downs, there are opportunities there. But at some point the management will say it's no longer feasible to maintain a public listing, let's delist. It's best to be out by then, YMMV but I've been screwed by that more than once.

[essentialinvestor] 05/4/2024 13:36

Thanks for the view, clearly more cautious than orhers outlined here however it's none the less worth considering.

[skinnypope] 28/3/2024 11:25

A small note from me re the NAV "dips" in last week or so.

I'd say this is consistent with the cash going up as the liquid portfolio is realised, due to transaction costs and bid/offer slippage etc.

I had 5% costs for the liquid portfolio which is perhaps conservative, but I do note that 1p drop in NAV = £3m. The recent cash increase to £58m suggests a ~£50m liquidation. So maybe it cost ADIG £3m to raise £50m = 6% cost? I suspect this is just a coincidence!

[essentialinvestor] 26/3/2024 12:36

CC, this is one of the reasons for the % discount - uncertainty around the 'reliability' of the NAV.