Abrdn Diversified Income... Share Discussion Threads

[essentialinvestor] 18/3/2021 14:15

CC, very helpful, appreciated.

[cc2014] 18/3/2021 14:03

I think perhaps it might be helpful to strip out the FX loss so we can see the performance of the fund manager?

The fund invests mostly in overseas assets and does not hedge (or at least not for very long) and therefore was always going to perform poorly on any strengthening of Sterling. There are very many others in the same situation over the last year.

The notes to the accounts show it's FX exposure is £270m and therefore every tiny 1% move is equivalent to £2.7m.

As we know cable has moved from around $1.20 to $1.40 in the last year or so.


This is the first fund I've held with FX exposure in the last 3 years because Sterling was so weak mostly due to Brexit. Even now with cable at $1.39 I'm still nervous that a more natural level is higher at $1.50. The move along with the discount has enticed me to buy a little but I'm not committing serious money until either all the stars align or I'm offered an outrageous price on a spike down.

[essentialinvestor] 18/3/2021 12:35

No one in their right mind would pay close to NAV for multi year underperformance.

NAV over the last 6 months is approx 2% lower.

It takes some skill not to make a positive return over the last few months

but ADIG appear to have done just that.

And get paid for doing so.

[8w] 18/3/2021 11:15

Can't see this being wound up anytime soon. New manager, new strategy gives the Board a breathing space before they come up with the next good idea.

I do hope this iteration works out, ADIG holders have endured too much long term pain

[tiltonboy] 18/3/2021 09:32

If they upped their buy-back, they would find willing sellers!

[cc2014] 18/3/2021 09:29

I honestly don't know what to do... herewith my thoughts.

I have already bought a small amount at an average of 93.6 inc. stamp duty and all costs.

So, I'm looking at the share price and discount and thinking it's a good price. But what I can see is a stream of regular sellers who are providing stock every day to Aberdeen to buy back. Now these buy-backs should be closing the discount and discouraging the sellers but they clearly aren't because the sellers want to sell for whatever reason.

I suspect the sellers may be selling due previous mistakes made by the fund manager but that's all in the past and I've been through the underlying holdings and I'm comfortable enoough. However, my views on this aren't going to stop the sellers selling it down further, if that's their mindset.

Further we now have some drip selling as bond yields are rising.


All the above doesn't really put my off buying any more, albeit it would be nice if the share price would pop down to 90p for half an hour so I can load up and then immediately bounce to 95p.

However, what is putting me off is the strength of the indicies worldwide. I know from the holdings ADIG isn't as senstitive to a general sell-off as most but some form of pull-back has to be on the cards sometime because the Dow and S&P cannot keep going up forever 8 days out of 10. The pattern just isn't consistent with what usually happens. Any decent long term rally requires a test of support but we aren't doing that.

So, I will keep my powder dry because if the say the Dow pulls back to a mere 31,000 I think everything will go with it regardless of whether it should or not.

It's a mad world we live in right now.

[tiltonboy] 17/3/2021 21:27

I've said it before, and I will say it again...wind it up

[hugepants] 17/3/2021 21:02

This mutt remains on a 17% discount and a near 6% yield.

[essentialinvestor] 05/3/2021 19:12

I won't mention any names as do not wish to get personal,
however the previous Aberdeen(SLI) Manager filled me with no confidence whatsoever.
Hopefully he's completely out of the picture now.

Bought a small amount today.

[riverman77] 05/3/2021 16:17

To be fair, the portfolio looks fairly decent and inoffensive as it stands today. Nothing I would describe as junk. Would expect it to deliver fairly reliable source of income. The earlier poor performance under the previous Aberdeen fund manager (I'm not talking about before that under Blackrock - less said about that the better) seems to have largely been due to a large position in catastrophe instruments and large amount of very expensive debt. These have both been cleared, and there is a new manager in charge.

[essentialinvestor] 05/3/2021 12:15

How accurate are the daily NAV updates given the level of unquoted?.


I see it's down to a 1 star rating now.

[greenpastures2] 05/3/2021 11:54

I bought for the income around about that price.

[cc2014] 05/3/2021 09:56

Is 92.22 a good price? A bit of a rhetorical question as I committed to the buy button.

Looks like we continue to have a large seller in the background

[hugepants] 24/2/2021 12:42

The discount is way too big though. It's nearly 17% compared with the 5% target. I think it will close at some point. They should be cranking up the buybacks. The company has cash and negligible gearing so they can afford to.


Discount Management

During the year ended 30 September 2020, the shares performed poorly relative to the NAV return with the result that the discount to NAV moved from 7.6% to 17.2% (all figures calculated with debt at fair value and excluding income). The Board is very much aware that this level of discount is inconsistent with the previously stated policy which is to seek to maintain the Company's share price discount to NAV (excluding income, with debt at fair value) at less than 5%, subject to normal market conditions. Whilst the latter half of the year under review cannot be regarded as 'normal market conditions' given the extraordinary uncertainties relating to COVID-19, it does not fully excuse the wide discount that prevailed at the end of September 2020. Through the year, the Company remained committed to buying-back shares and a total of 5.65 million shares were repurchased for a value of £5.7 million. The Board, however, feels that in order for the share buy-back to be truly effective performance improvement from the portfolio is an absolute priority, so it will continue to make some allowances for both market conditions and the changes to the portfolio that are set out in this Report

[speedsgh] 24/2/2021 12:34

ADIG has been a serial underperformer for years. Unless you're looking for a quick trade, I would employ the bargepole. About time that the trust was put out of its misery and wound up. Aimho.

[cc2014] 24/2/2021 12:30

Share prices fell overnight in the East while we were sleeping, which is the danger here. If we get a pullback in markets (generally) of say 5% which in my imho would not be unreasonable, will the sharprice fall or will the NAV close? I'd bet on the share price falling.

I am watching. I'd like something around 92-93p to entice me to press the buy button. I don't think that very likely but there again this market is mad. Who knows where it is going next, but I fear more than anything we haven't had a proper pullback in months since all this retail money came into the market and I wonder how many stops will fire once it starts falling. Not, that I think there's much speculative retail money in ADIG but if the market starts falling everything will go with it.

Who knows. If you had asked me yesterday I'd have said I'd got no chance at 93p and it would require a big sell-off and distressed sellers. Today it's only 3 percent away which looks do-able.

[speedsgh] 24/2/2021 12:00

And yet still the share price languishes 16% below pre-Covid levels and at a mid-teens discount to NAV.

[hugepants] 24/2/2021 11:27

dividend increased to 1.38p per quarter

[greenpastures2] 03/2/2021 13:40

It does seem to move around quite a bit so if you hang on you might well get another chance. I sold last February for 104 and took quite a loss but was able to buy back in the summer for 91p. I have stayed put since.

[cc2014] 03/2/2021 12:51

hmm. Well it seems I got greedy.

Bought a small amount last week at 94p and was rather hoping I could keep adding more aggressively as it approached 90p.

That doesn't look likely now with buys going through at 99p

[hugepants] 22/1/2021 15:52

The discount is over 15% again

[neilyb675] 18/12/2020 17:19

Aberdeen Diversified Income and Growth Trust (ADIG) has a diversified multi-asset approach, aiming to generate attractive long-term income and capital returns. After a strategic review in October 2020, the manager intends to increase the share of private assets in the portfolio to 45% by Q221 and to 55% over the long term (vs the previous c 43% target). ADIG's investment committee will now be led by Nalaka de Silva, head of private market solutions at Aberdeen Standard Investments (ASI). While ADIG's NAV TR performance has lagged the benchmark in recent years, the shares continue to offer an attractive FY21 yield of 5.8% (based on ADIG's dividend guidance). The manager's plan to maintain or increase dividends should be supported by the lower interest expense post the partial bond repurchase in early November 2020 and the use of revenue reserves.



ADIG's NAV TR performance has lagged its benchmark (Libor + 5.5% pa) since the strategy change in March 2017 to an increased focus on less liquid assets. The NAV discount has widened to c 10-22% since end-March 2020 from 5% before the COVID-19 pandemic. The last 12 months (LTM) dividend yield is 5.7%, ahead of its peers. We note that in FY20 dividends were covered by earnings.

[mister md] 17/12/2020 15:51

Shareprice is moving in an upward channel. It's slow. It's boring. But it's moving up, with dividends along the way.

[greenpastures2] 16/12/2020 20:17

It does mean that there are less shares to pay future dividends on.

[rich1952] 16/12/2020 11:14

The aggressive buy back policy isn't holding the share price and it can't continue indefinitely. More sellers than buyers despite the attractive divi. I don't know where we're heading on this one.