Abrdn Diversified Income... Share Discussion Threads

[tiltonboy] 06/3/2023 18:18:57

Credit where its due, the buy-backs continue, and the biggest one yet!

[hohum1] 02/3/2023 14:17:13

The annual report list of largest shareholders shows that ii and HL are the only buyers compared to a year ago. All of the institutions have reduced since 2021. Peter Spiller was right: at a 25% discount to NAV they should return cash from maturing long term investments back to shareholders rather than entering into new ones. If the discount persists for 2-3 more years they should give up and shut it down

[tiltonboy] 02/3/2023 12:26:26

CC,

The selling has been persistent, and consistent for a long period. It hasn't been difficult for them to buy back because there is always lines of stock on offer.

I got persuaded not to vote against the resolutions at the AGM last year, only to find the following day that the broker was offering stock in big size. Fast forward a year, and we are in the same boat, but sellers are now willing to sell on a 20% plus discount.

If they ramped-up the buy-backs even more, I would suggest they would get filled-in pretty quickly.

One would hope on this discount and yield, that further downside is limited, in the absence of a major fall in markets

[cc2014] 02/3/2023 12:08:12

Well I'm completely puzzled. this stock isn't doing what I expected at all.

So, shortly before the continuation vote, the fund manager gets a kicking for not controlling the discount and some large holder(s) start selling out. Considerable volume goes through around 87-89p.

The continuation vote arrives and I'm surprised to discover it's resounding in favour of continuation.

So, now the share price is struggling again and more volume is going through 87-88p, which presumably means some don't like the outcome. Perhaps they bought trying to influence the vote and now have to unleverage. I don't know.


This is one of those stocks where I haven't bought because I don't like the long term prospects but honestly though the share price was a bit depressed and was due to bounce back to something beginning with a 9 at least in the short term.


Gilt yields aren't helping of course, but the market doesn't seem too bothered about that elsewhere. It's just certain stocks.

[atlantic57] 02/3/2023 11:54:20

Hohum how realistic is that 30% discount to net asset.

[neilyb675] 02/3/2023 11:26:45

87.00 - 88.00 (GBX) at 10:57:12
on Market (LSE)

[hohum1] 02/3/2023 11:24:16

Hopefully they’ll go into the buyback cheaply. 30% discount not far away…

[tiltonboy] 02/3/2023 11:22:49

Stifel offering a shed-load at the moment!

[hohum1] 02/3/2023 07:06:18

Dividend announced: 1.42p per quarter (+1.4%). Ex div on 9 March. Paid on 3 April

[spectoacc] 01/3/2023 19:17:23

As a glance at the chart would attest.

[hohum1] 01/3/2023 19:00:08

@RCT2 - Figures on factsheet are total return. They assume that the dividend is reinvested in new shares (or at NAV) on the day they are marked ex-div.

[essentialinvestor] 01/3/2023 17:43:11

Last British Assets Trust NAV update (before the first Manger change ) and with debt at fair value in FEB 2015 stood at £1.45 pence a share

[thrugelmir] 01/3/2023 17:34:39

Wrong horse to back if you want to see the holdings liquidated and the NAV realised. PE is an illiquid holding. Given the broader PE market and collapse in IPO's and trade sales. Not likely to change anytime soon.

Never ceases to amaze me how many investors hang ionto badly performing investments in the hope of getting their money back. As a relatively new investor. I'm content to keep acquiring stock and enjoy the dividend yield on offer.

Last dividend was declared on the 15/12. Less than three months ago. Next announcement is therefore imminent. AGM was only the other day.

[rcturner2] 01/3/2023 17:30:57

That is NAV not total return, taken from the factsheet. You can add dividends on top.

[tiltonboy] 01/3/2023 16:29:12

That looks more like total return.

Admittedly using different dates, since 1st March 2018 to 28th February 2023, NAV return is negative 7.2%, and positive 15.6% when dividends are included.

In share price terms, over the same period, there is a negative return of 27.2%, or negative 4.4% with dividends included.

Newcomers might do quite well from here, but long-suffering shareholders can attest to poor performance , especially if they were invested in other incarnations of the beast

[hugepants] 01/3/2023 16:19:15

Be interested to see if they cut down on the buyback now! Certainly the dividend announcement looks overdue.
Happy holding this even though it would have been far better for shareholders if this was wound up. I hold some reits but I see this as less risky than a reit given the diversification and zero gearing (actually has net cash of 5%). It has a similar, if not greater, yield to many reits.

[rcturner2] 01/3/2023 16:04:44

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%

[rcturner2] 01/3/2023 16:03:33

The NAV isn't drifting down.

[cc2014] 01/3/2023 15:27:44

I keep returning to this Trust based on the discount but I keep coming up with the same answer.

It doesn't matter what the discount is or the yield is if the investment manager makes bad decisions because the NAV will keep drifting down.

I will continue to require a bigger discount to get me interested.

[essentialinvestor] 01/3/2023 15:00:52

Was Home REIT one of those assets ..."...with
reliable, inflation-adjusted cash flows and income".

How much has De Silva invested in ADIG,
what's their personal holding here.

[peckers56] 01/3/2023 14:57:00

Extract from Abrdn "marketing" email received earlier today - may be of general interest

Nalaka De Silva, manager of Aberdeen Diversified Income & Growth Trust, is similarly circumspect. He says core inflation is proving persistent and ‘soft landings’ are difficult to orchestrate: “The US Federal Reserve is effectively killing the cycle and we have yet to see where rates peak through this year. The extent of the recession is also unknown.”

The trust is split into three main areas: equity, fixed income and credit, and reduced beta assets, which includes areas such as listed alternatives and infrastructure. De Silva says exposure to private markets brings a long term perspective to the portfolio. He admits there has been some concerns that valuations of private equity holdings do not yet reflect the weaker economic environment. He believes the high yields on offer more than compensate for any potential re-set on valuations. There are also significant discounts on many of the private equity trusts. The fund holds private equity managers rather than making individual private equity investments, which gives greater diversification.

The trust is also looking for opportunities in equities and credit markets as the economic downturn unfolds and value re-emerges. He says visibility of cash flow and inflation protection is important. As such, he has trimmed back non-investment grade bonds and unrated credit, maintaining a weighting in investment grade where there is less chance of default. The fixed income portfolio tends to be shorter-duration, with less exposure to interest rates.

De Silva believes yield is likely to be particularly important in the year ahead, as investors look for stability while capital values remain volatile and uncertain. The fund looks to have a broad mix of income sources, including listed infrastructure, real estate, private infrastructure and private credit. This helps create a stable portfolio of income-generative assets.

There are green shoots in the year ahead, but until there is greater clarity on the turning point for inflation and interest rates, some caution is warranted on financial markets. At abrdn, the focus is on finding assets with reliable, inflation-adjusted cash flows and income.

[thrugelmir] 01/3/2023 14:27:44

@EssentialInvestor - Hindsight is an investors greatest asset. Remember RBS's rights issue at over £12 or the sudden nationalisation of Northern Rock. Offloading large lines of stock isn't easy. People forget it takes two parties to conduct a trade. Even if you wish to bail out of a stock. Sometimes you cannot.

[tiltonboy] 01/3/2023 08:35:01

RCT,

Indeed the risk-free rate can change (it might even rise further), and duration risk is also an issue, so who knows!

[spectoacc] 01/3/2023 08:26:27

I'll give them a tiny bit of credit for selling out of it again tho - M&G were buying more after the allegations broke! Institutions truly are mug money (because, of course, it isn't their money, any more than it's ADIG's).

@RCT2 - can't say my portfolio is ever balanced, I'd rather outperform. Currently majority in the cash-esque ETFs, tho do have some ADIG for my sins.

[essentialinvestor] 01/3/2023 08:23:28

If anyone is unaware of Home REIT, read a few posts on the HOME BB and get a flavour of what
has unfolded there.

And before anyone counters with..it's just one among many investments, than imv misses the point. ADIG should never have been near that business.

Multiple PI's on the HOME board had warned for months on that REIT.