Abrdn Diversified Income... Share Discussion Threads

[tiltonboy] 24/10/2024 12:02

European Residential had already been heavily marked-down and looks like its heading to a total wipe-out. Probably only valued at a bit above £3m now.

No point mentioning the Markel positions as they were valued at less than a million each.

[davebowler] 24/10/2024 10:34

Fund managers’ report
Several Q2 valuation statements were received across a number of asset
classes. Within the received private equity statements, performance was net
positive. This positive performance was driven primarily by a substantial 8.7%
increase in Bonaccord Capital Partners I-A LP, thanks to an improved exit and
liquidity environment. Within real assets, SL Capital Infrastructure II’s valuation
remained stable, while the Aberdeen European Residential Opportunities Fund
experienced a 30% devaluation, primarily driven by market pricing of a microliving project in Denmark. Despite this setback, efforts towards liquidation
continue. Within private credit and alternatives, the Fund saw positive
performance across both asset classes. Hark III and HealthCare Royalty
Partners IV reported modest increases, whereas Markel CatCo SPI 2018 and
2019 both received substantial increases from the previously held valuations.
Drawdowns and Distributions
. SL Capital Partners II called €213k of capital.
. Bonaccord Capital Partners I-A LP made both a capital call and a distribution
during the period resulting in a net drawdown of $35k.
. Hark III made a single distribution of $1.4m.
. BlackRock Renewable Income distributed £224k.
. HealthCare Royalty Partners IV made a single distribution of $192k consisting
of several royalty payments.
. Cheyne Social Property Impact Fund made a distribution of £123k.
. Mesirow IV made a distribution of $39k.

[hugepants] 23/10/2024 09:38

If they could sell the whole shooting match at a 15% discount that would give 30% upside form here.

[tiltonboy] 23/10/2024 07:25

Patria PE (formerly Abrdn) have sold a slug of investments at 95% of NAV. Doubt there is any crossover with ADIG but it looks as if discounts have tightened

[hohum1] 22/10/2024 09:35

Sadly, for most holders, the only relevance of the CGT discussion below relates to booking losses..

[2wild] 21/10/2024 16:53

If dividend was cut in half would still be large. Should capital be returned via tenders, lower income would be spread over fewer shares. Or via B share issue would be spread over the lower adjusted share price

[tiltonboy] 21/10/2024 13:04

...don't bank on large divis going forward

[2wild] 21/10/2024 09:14

Updated nav 66.55p. Picked up 5000 at 42.66p this morning. 56% upside to NAV and a huge dividend yield as I await Capital Returns.

[tiltonboy] 21/10/2024 08:53

I received an e-mail from Abrdn on Friday

[genista71] 20/10/2024 19:38

do you have a copy of the presentation?

[tiltonboy] 20/10/2024 18:04

Abrdn have released a presentation on ADIG. Not certain whether it's on the website yet.

Adds a little more colour, especially on commitments, but nothing much else

[travster32] 18/10/2024 11:21

Many thanks for all the answers. I’m confused why it’s not a CGT calculation as it’s a return of capital. It doesn’t appear to be a dividend payment.
I have used the ratios to calculate the base costs of the retained holdings and the B shares. Much obliged.

[andmitch] 18/10/2024 10:42

Ordinary shares 54.21% of cost base.B shares which were redeemed 45.79% of cost base. In document on ADIG website.

[sll] 18/10/2024 10:24

The (first) 38p+ capital return was done that way to keep it outside of CGT. It represented a diminution of one's book cost. ADIG specifically structured things that way to avoid CGT for those investors who could otherwise have been exposed to CGT - not those working through SIPPs and ISAs - as covered above.

[citytilidie] 18/10/2024 07:14

In answer to your question travester, if it’s not a dividend payment, it has to be a physical gain or loss for CGT purposes. Officially, there should be 2 specific ratios somewhere either online, or on the company website where you times your original purchase price with these ratios. One ratio will give you the new cost price, and the other would give you either a gain or a loss depending what you originally paid. Not many people use these, but it is the correct way if you want to be really exact. There are actually ratios every time a dividend is paid as theoretically you could end up in the long term paying tax on dividend income received and then capital gains on the profit when you come to sell as the book cost would be incorrect.As I said, most people just estimate it, so for ease, get everything in Isas in time is you can

[citytilidie] 18/10/2024 07:09

I think the moral is, try not to own any shares if possible outside ISAs or SIPPs, especially with the latest Government plan to stitch anyone up that might have a little money saved up. CGT is the next cash cow for them after Inheritance tax

[travster32] 17/10/2024 12:24

Excuse my ignorance but please can you tell me how the return of capital is treated for tax purposes? I believe it is treated as a capital gain/loss but could anyone explain the calculations required? Many thanks.

[spectoacc] 06/10/2024 14:22

Still in too, but haven't added since the capital repayment, albeit came close. Strikes me it's reasonable value, but so is a great deal else.

[tiltonboy] 06/10/2024 08:46

Still holding. Some of the cash has gone in the dividend, and there are commitments.

[skyship] 06/10/2024 07:07

Tilts - you still a bull here? c10% cash at the moment; so wondering whether to add to my current rather small allocation.

[hugepants] 16/9/2024 08:34

1.95p dividend

[hohum1] 25/8/2024 21:07

July factsheet out. Interested to see that they are still holding nearly £20m / 10% in the Abrdn Global Private Markets fund. According to a summary document online, this has quarterly liquidity albeit with a queueing facility. Hopefully, it’ll form the basis of another payout soon along with any case payouts from Burford Opportunity Fund. Probably not much else soon from the other large holdings..

[hugepants] 08/8/2024 19:29

They mention opportunistic sales and, who knows, they may sell the whole lot next week. But the schedule they've given so far is for the tranche1 assets of £101M to mature between 2024 and 2027. If that's split evenly over the 3 years, than we could expect about 11p per year capital back. Income is less now after selling the high yielding public fixed income stuff but going by skinnypope's previous estimates the earnings yield is about 5% now which is about 2p per annum. So 13p a year total.

What will probably happen, as it usually does, is the discount will reduce from the current silly value of 38.5% to about 25% just before the 1st capital return. So Id expect a share price in the 50s next year sometime.

There is also the last regular dividend to come which is to be paid in October. It reads to me like it will be maintained at 1.42p but cant be sure until they announce.

[tiltonboy] 07/8/2024 15:50

We are almost a quarter of the way through the time for the 2024/27 tranche, so we may start to see some liquidations of holdings unless they are all loaded towards 2027. I'm hoping that the managers will provide some additional colour on timings of redemptions.

I agree on opportunity cost but I think the ROI here could match/exceed what I am aiming for elsewhere.

[spectoacc] 07/8/2024 15:41

Opportunity Cost, always Opportunity Cost, but - this is starting to feel too cheap to me. NAV crept above 70p, but share price languishing.