Abrdn Diversified Income... Share Discussion Threads

[spectoacc] 20/6/2023 07:35

It's always set up to not quite exclude a winding-up, but to make it highly unlikely as the outcome. Eg:

"...Despite the investment team delivering steady investment performance, above their new strategy's target and in exceptionally volatile markets...".


ie "We're doing great, it's you, not us".


And:
"This has also included the increased diversification of the portfolio into private markets exposures that are more challenging for many investors to access directly."


Yet they wonder why the discount is so large? Plenty of direct access to private markets from a plethora of ITs, all on massive discounts (HVPE, OCI, PEY, NBPE, APEO etc).

[cc2014] 20/6/2023 07:34

"As part of this exercise, we will consider all options, including, but not limited to, a combination with an existing investment trust"

I've got to say I'm not sure why the strategic review. Do they not talk to their major shareholders on a regular basis? or perhaps the shareholder turnover has been so large they need to start again?

lol- so what we need to do is find another investment trust running at a massive discount and put the two together?

[hugepants] 20/6/2023 07:32

Davina Walter, Chairman of the Company commented:

"While the Board is encouraged by the management of the Company's portfolio, the Company's shares continue to trade at a persistently deep discount to net asset value. It is the Board's view therefore that a strategic review of the Company is required to consider how we can best optimise value for shareholders. As part of this exercise, we will consider all options, including, but not limited to, a combination with an existing investment trust.

[spectoacc] 20/6/2023 07:05

Just wind it up! Why the so-frequent reviews, that ultimately always go nowhere?

Another:


"The Board will immediately consult with shareholders and welcomes their views on the best strategic option for the Company. The Company will update the market on the progress of the strategic review in due course, noting that at this stage there can be no certainty as to the final conclusions and/or outcome of the review."

[cc2014] 07/6/2023 12:28

I see they are trying to do something about the discount but they also need to do something about the return.

2.2% over 6 months isn't terrible. At least it's positive but I score it 5/10. Need to do better.

I've been through the investments quickly this morning. They didn't excite me.

I like the discount but I'm going to require a spike down in the spike to put my cash to work here.

[hugepants] 07/6/2023 08:58

Interims


...However, the Company's share price total return (which assumes dividends are reinvested) was -6.5% with the share price discount to NAV widening from 23.7% to 29.8% at 31 March 2023. The drop in the share price appears to be driven predominantly by the stock market currently applying a substantial discount to private equity assets, reflecting uncertainties over asset valuations. Although your Company has under 12% of its assets in private equity investments, this substantial discount appears to have been applied to all the Company's private market assets, even to sectors such as infrastructure (comprising 16% of the Company's assets), which typically trades on a tighter discount.

The Board appreciates the frustration of shareholders at this share price performance. To address the issue, the Board and Manager continue to communicate to the market the quality of the Company's portfolio and the steady NAV returns it has generated.

[thrugelmir] 27/5/2023 14:09

Not just ADIG. Institutional money is increasingly being parked in cash. Forward view suggests there's a dip on the horizon.

[spectoacc] 26/5/2023 14:53

Obviously we're still unloved - but are we a little less unloved? Been no drop with change in base rate expectations.

[thrugelmir] 23/5/2023 21:55

I suspect more likely to be a disgruntled stock holder. That's held on for far too long. In the vain hope of recovering their losses.

[atlantic57] 23/5/2023 17:08

Thrugelmir is there some artificial intelligence that automatically gives the thumbs down to posts.I notice no poster ever offers any alternative view to the post marked down.

[thrugelmir] 22/5/2023 18:23

May well explain the continual buybacks and contraction of the asset base. News wise been very quiet for a while.

[tiltonboy] 22/5/2023 09:06

They are re-organising their Private Markets teams, so it's not beyond the realms of possibility

[hohum1] 22/5/2023 08:44

Have only just heard (on Jonathan Davies’s podcast) that another Abrdn trust (AJIT) has thrown in the towel. Too much to hope that ADIG will do the same any time soon…

[atlantic57] 12/5/2023 09:08

Cc2014

Can you share other places clearly not investment advice
Thanks

[hohum1] 12/5/2023 08:42

The March factsheet says that they do have exposure to Burford Capital’s Petersen case via the unlisted investment, BOF. Checking back, the ADIG NAV went up by 1.5p on the day of the Peterson announcement and BUR shares have been strong since then so there may be more to come.

[thrugelmir] 26/4/2023 14:11

If inflation does drop back to 4% by the end of 2023, early 2024. Then 6% will be a decent positive yield. Reinvest the income and let compounding do the heavy lifting.

[hugepants] 25/4/2023 21:14

Still feels cheap down here though. 6% yield at 95p.

[cc2014] 18/4/2023 14:21

I have sold out today. Might be too early, might not be. Gut instinct but plenty of places elsewhere I can put the cash where I have more conviction.

[essentialinvestor] 18/4/2023 13:58

May be of interest.

[thrugelmir] 16/4/2023 22:01

RMMC has it's moments in the sun. If you are investing for the long term then the spread shouldn't be a concern. Lower the liquidity in a stock the greater the volatility in the share price. Not for the faint hearted I agree. Having said that many investors appear to love Private Equity on the basis of perceived discounts. Although the underlying portfolios are opaque in nature and the investment managers cream off high gees whatever the performance.

[rcturner2] 16/4/2023 19:34

I have held Phoenix since before the name change which according to Wikipedia was in 2010.

[essentialinvestor] 13/4/2023 16:08

Speaking of micro caps I looked at RMMC today but the % spread is prohibitive.

[thrugelmir] 13/4/2023 16:08

Not always. I've held one individual company share for over 10 years. Despite the economic cycles. Banked some profits when the price rose too far and likewise added more when it went oversold.

[essentialinvestor] 13/4/2023 16:05

Yup, although Sage was a micro cap when I started, Next available for pennies at one point - always so much easier with hindsight, eh.

[spectoacc] 13/4/2023 15:58

"A long-term investment is a short-term one gone wrong".