Abrdn Diversified Income... Share Discussion Threads

[hugepants] 31/3/2023 08:28

There are a few differences though EI. ADIG's portfolio is about 40% public, it pays a big dividend and has no gearing.

[essentialinvestor] 31/3/2023 00:14

HP, you can buy the private equity companies at between 30-50% discounts, all be it those
NAV's may be a tad ambitious in some cases!,
or very in others.

Yes you would hope what ADIG hold is lower on the risk scale. Let's be honest though, performance wise it's arguably been a pig's ear since the British Assets Trust days.

I think the only way forward is to use a large chunk of realisation proceeds to buy back their own shares.

CLDN sits on an approx 30% NAV discount and that's pretty conservatively managed.

[hugepants] 30/3/2023 23:06

Don't really understand why equities are outperforming. The FTSE yield is 4% which is probably what you'll get on a common garden equity investment trust. That's not much higher than the risk free rate. At least your getting a 7% yield here and the near 30% discount.

[thrugelmir] 30/3/2023 22:38

If I feel negative towards a particularly stock I sell it and move on. Everybody buys and sells at different price points. I'm a more recent buyer, As a consequence don't carry any baggage. Nor concern myself overly with the past. As there's a reset underway. The pillars of the longest bull market in history have been pulled away. Next decade is likely to be very very different.

[spectoacc] 30/3/2023 20:25

@Thrugelmir NAV down perhaps 1%, with a lot of esoteric/is-it-marked-to-market-properly stuff, and whilst they've been buying back shares. So no, I don't think the performance is too good.

As I said before I bought - and really should have listened to myself - ADIG is uncorrelated to the market because when the FTSE goes up, ADIG goes down, and when the FTSE goes down, ADIG goes down.

As an investment vehicle, it seems to serve no good purpose now that so many other, better ITs are at similar or greater yields.

I live in hope of a dcb.

[essentialinvestor] 30/3/2023 17:41

Yup, take your point, however NAV was north of £1.40 a share circa 2016, that's a fair whack of time. If you're making a buy case for the next 5 years or so, that's arguably different.

[thrugelmir] 30/3/2023 17:37

At the least the NAV has been steady in a somewhat volatile first 3 months of 2023. Investing is for the the longer term. Short termism often results in over trading, and chasing pots of gold at the end of rainbows. Momentum can rapidly dissipate.

[essentialinvestor] 30/3/2023 17:20

Perhaps I'm being too cautious in outlook, but a 25-30% NAV discount, given the 5 year track record and some current market and macro uncertainty,
looks about fair to me. In less uncertain times that might narrow, but NAV appears to be going nowhere fast atm.

Will NAV have moved on much in 12 months time?,
you might need to be an optimist to think so.

If you enjoy going against current sentiment then may be a case for a contra sentiment type purchase..

[hugepants] 30/3/2023 16:51

At least that's a positive. What kind of biscuits do they offer you?

[peckers56] 30/3/2023 15:17

NB: The food, wine and deserts served at their AGMs is always excellent!!!

[tiltonboy] 30/3/2023 15:13

They've bought back 5.125m shares this year, of which 1.865m have been since the AGM.

If they gapped-up 10% there would be a stampede for the door

[cc2014] 30/3/2023 14:53

You've got to laugh really. 93% of those who voted, voted for a continuation and then it appears they start dumping their shares.

I cannot work it out really. Surely a better strategy would have been to vote for a wind-up, let the price gap up by 10% and then start selling their shares

[spectoacc] 30/3/2023 14:33

There's a certain embarrassment in being an ADIG shareholders (particularly a recent one). Like having a giant boil on your nose, or the local GP telling the pub about your piles.

Market goes down - ADIG ticks down. Market goes up - ADIG ticks down.

[cc2014] 29/3/2023 13:13

According to the latest RNS, ADIG only have 303m shares left to buy back.

[petewy] 23/3/2023 09:54

Thanks Dave

[thrugelmir] 21/3/2023 22:51

Reinvest the dividends back into more stock. Investing is a long term game. Not a fruit machine.

[spectoacc] 21/3/2023 13:53

Exactly. 6.8% yield, share price falls 5% a year.

[hugepants] 21/3/2023 13:05

What's not to like? Well diversified. 6.8% yield, 27.5% discount and it has 5% net cash.
Just don't look at the historic chart.

[spectoacc] 21/3/2023 09:00

Regretting my foray into ADIG, should have taken heed of my own #337

[tiltonboy] 16/3/2023 15:45

They like to invest in discount plays, but not normally aggressive

[thrugelmir] 16/3/2023 15:20

Aggressive shareholder perhaps?

[hugepants] 16/3/2023 13:31

Ok so they've added 4.7M.