Abrdn Diversified Income... Share Discussion Threads

[tiltonboy] 17/2/2023 07:00

From British Assets, to Black Rock Income & Growth through to the current incarnation, nobody has made a strategy work.

[thrugelmir] 16/2/2023 23:32

Somebody is offloading shares in sizable quantities. Seems the buybacks are having little benefit to the majority of us small shareholders.

Best route out would be a merger with another stable mate investment trust. Needs scale to survive.

If you bother to look at the share performance chart. The damage was done in the Covid market sell off. Never recovered. Also the IT has undergone a total switch of investment style over the past 5 years.

People seem to spend far too long on social media. Rather than actually reading up on their investments these days.

As Terry Smith famously said. Investors rarely bother to read the accounts these days.

[hohum1] 16/2/2023 19:06

If investment trust directors owned more than 5000 shares or l, even better, subscribed for their ISA every year they might care a bit more when the shares languish at a 25% discount and deliver a negative total return over 5 years.

[thrugelmir] 16/2/2023 18:20

Why does the board need to be major shareholders? It's an Investment Trust....

Everyone on board is an employee. Vote the Directors off at the AGM is you believe them to be inadequate in some way.

Wealth managers have an abundance of choice. It's retail investors in the UK that are sellers of UK stocks. Global equities remain the fad.

[essentialinvestor] 16/2/2023 12:53

How transparent is the NAV ?.

It's a 25% NAV discount based on ..

[hohum1] 16/2/2023 08:36

Also, the dividend isn’t covered. In removing the failed DCM, they could have set out a specific target to return cash to shareholders distributed by private market investments. Wealth managers do not appear to be buying into ADIG’s story of jam tomorrow. Most of the Board own very few shares - they clearly don’t believe in it themselves. They deserve a kicking at the AGM. This will continue to languish and deserves to do so.

[spectoacc] 16/2/2023 08:06

"It pays a decent dividend" - and yet the risk-free has moved considerably. Has ADIG moved enough to reflect that? Particularly since (IMO) IR's haven't topped out yet, and won't fall anytime soon when they do.

[rcturner2] 16/2/2023 07:54

The only thing that really matters is where is ADIG likely to go from here?

It pays a decent dividend, the last 5 years NAV performance is perfectly acceptable for this type of fund and is on a pretty big discount.

Seems a reasonable investment to me.

[spectoacc] 16/2/2023 07:39

ADIG do at least have the advantage of being relatively uncorrelated to the markes.

FTSE new highs - ADIG languishes
FTSE falls - ADIG languishes
FTSE stays stable - ADIG languishes

;)

[hohum1] 16/2/2023 07:20

Another 200,000 bought back yesterday. With the discount at nearly 25%, the Board’s vague and woolly discount control “policy” is allowing the share price to languish. This was entirely predictable. Will be interesting to see if they address this at the AJ Bell seminar.

[thrugelmir] 15/2/2023 14:19

Far from a unique problem. Retail investors have appeared to take their money elsewhere.



Over 50% discount = 27 funds
40%-50% discount = 19 funds
30%-40% = 32 funds
20%-30% = 33 funds

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Can’t pay the bills with NAV performance!

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No but you can continue to buy in an attractive dividend yield. Inflation will ultimately drop away.

[rcturner2] 15/2/2023 13:57

I bought back in yesterday.

[riverman77] 15/2/2023 12:57

Yes share price lagged NAV, which is what may create the opportunity. On balance, can't see the discount narrowing much anytime soon so not tempted to buy just yet, but will keep any eye on it.

[hohum1] 15/2/2023 12:04

Can’t pay the bills with NAV performance! Share price returns are rather worse. 2022 = -2.0% preceded by +6.3%; -5.2%; +3.3% -4.2%. The Board have let the 20% discount become entrenched and lamely say they are going to try harder to get the trust’s message across. In the meantime, they barely own any shares themselves.

[rcturner2] 15/2/2023 10:06

The last 5 years NAV performance of the trust are:

2018 -4.7%
2019 +9.2%
2020 0.0%
2021 +11.7%
2022 -0.9%

[riverman77] 15/2/2023 09:51

Perhaps worth a punt at current discount? For all the issues this trust has faced in the past, recent performance has actually been reasonably steady (if a bit plodding). Interestingly, 3y nav returns are now broadly in line with Capital Gearing trust and Personal Assets - both these tend to trade on a premium.

[davebowler] 15/2/2023 08:47

AJ Bell seminar on ADIG

[tiltonboy] 14/2/2023 20:19

At last a semi-decent buy-back!

[thrugelmir] 14/2/2023 15:32

The top 10 holdings. Are in themselves multi investment holdings.

[rcturner2] 14/2/2023 06:48

I have held this in the past and I am looking again at the share. The "650 holdings" aspect is very misleading. For example, the top 10 holdings account for 42% of the NAV according to the latest factsheet, so I suspect as per HP's comments you can ignore most of the holdings.

[hohum1] 13/2/2023 20:04

ALAI should really fold into Murray International. The only reason it has survived for so long was because Martin Gilbert was on the board. As for ADIG - maybe SAINTS should launch a takeover bid

[tiltonboy] 13/2/2023 15:50

Another Abrdn fund, ALAI, needs to call it a day as well. Far too small...

[thrugelmir] 13/2/2023 15:37

Sub £500 million funds are all ripe for merger or wind down. Too small to be economic.

As the Central Banks pull liquidity out and maintain a high interest rate policy. Expect ETF's will likewise suffer. Many equities may well be in for a fallow period.

[davebowler] 13/2/2023 10:08

ASCI, another abrdn trust has announced possible plans for winding up.