Abrdn Diversified Income... Share Discussion Threads

[sll] 07/9/2023 06:52

Thanks hohum1, just looked back to 15/9/22 and found it!

[hohum1] 06/9/2023 09:56

The dividend announcement is usually mid September. You'd think that they will give the results of the strategic review at the same time.

[sll] 06/9/2023 08:40

Wouldn't that div have been announced by now? Can't trace anything.

[hugepants] 30/8/2023 11:15

but in the meantime just collect the chunky quarterly dividend. There should be another one announced in 2-3 weeks.

[tiltonboy] 30/8/2023 11:06

Could be months away if ASCI is anything to go by

[neilyb675] 30/8/2023 09:51

It would be jolly nice to hear an update and a way forward following the above announcement from 25/7/23.

We are waiting and have been waiting very patiently. Time to deliver me thinks.

[neilyb675] 30/8/2023 09:49

as a reminder - now over 1 month ago we heard ......

25 July 2023

For Immediate Release

abrdn Diversified Income and Growth plc

Update on Strategic Review

The Board of abrdn Diversified Income and Growth plc ("ADIG" or the "Company") is pleased to provide shareholders with an update in respect of the strategic review process announced on 20 June 2023.

Following the announcement of the strategic review, the Company has received a number of credible, attractive and varied proposals for actions that we believe should enhance shareholder value. The Board, and its advisers, are actively exploring how these various proposals could best deliver value for ADIG shareholders and are engaged in productive discussions with a selected shortlist of parties. The Company will provide an update in due course, noting that at this stage there can be no certainty as to the outcome of the review.

The ADIG Board has also taken the decision, in the light of the ongoing review process, to suspend the Company's investment-led share buyback policy. Subject to the outcome of the strategic review, the Board will consider resuming share buybacks in due course.

Davina Walter, Chairman of ADIG commented:

"We have been impressed with the proposals we have received which present the Board with various options for enhancing shareholder value. We are undertaking a detailed review of these options and are looking forward to updating shareholders in due course on our progress."

[topvest] 11/8/2023 12:06

Yes, there appears to be buying interest. I've doubled my position ahead of the corporate action. I may buy more. Hopeful of a 10%+ return in 3 months.

[tiltonboy] 01/8/2023 07:55

For the first time ever (it seems) the shares are well bid this morning!

In a perfect world I would like to see a merger with a fund that has a tight DCM, and values ADIG at anywhere over a quid.

Wishful thinking perhaps!

[topvest] 31/7/2023 13:54

It could well become a JPMorgan trust, as there are a couple that might fit. I don't disagree with you that its losing its right to exist, but generally speaking the older and larger trust tends to continue so an existing JPMorgan trust may back into ADIG along with a change of manager. We will have to wait and see, but I would like to see it continuing personally.

[tiltonboy] 31/7/2023 13:38

Hopefully the process won't take too long...certainly not as long as ASCI

[spectoacc] 31/7/2023 13:26

JGGI's a good one, it can have ADIG too ;)

[hohum1] 31/7/2023 12:49

Scottish Investment Trust merged into JGGI and the world didn’t stop. The Board of ADIG haven’t earned the right to carry on: buying back most of the debt at what turned out to be close to the low on bond yields and now giving up the ghost as bond yields peak (perhaps).

[topvest] 31/7/2023 12:10

Spread is quite large for a company of this size! May add some more at the right price. I want this trust to continue, as its a golden oldie investment trust. With its asset base, then surely a more attractive niche option can be found. Anyway, its probably quite attractive at this price for a 10% bounce in September once the review is finalised.

[hugepants] 27/7/2023 20:19

Thrugelmuir's suggestion is the preferred option here imo.

Thanks for the heads up on JARA hohum. It looks pretty interesting on a 28% discount and 6% yield. It's only down 23% since the beginning of the year so picked up some today.

AEET (an energy efficiency trust) is also worth a look on a 33% discount and commencing a managed wind-down. It should be generating a decent dividend as well. Very cheap but it's so far off the radar you can't even see the radar.

[hohum1] 26/7/2023 08:12

Neilyb - HDIV is too small and Henderson have been here before with Henderson Value Trust which they took over from SVM Global and turned into a complete disaster. JP Morgan might be a better bet - some kind of mix and match involving MATE, JARA and a slug of cash funded by the realisable assets?

[spectoacc] 26/7/2023 07:46

SHRS & ASCI, abrdn banging a few more together. Not so great for SHRS s/holders, but they owned a chunk of ASCI already.

[neilyb675] 25/7/2023 17:31

above is from the HDIV annual financial report....

I wonder (in reference to ADIGs RNS today) whether a combination of some sort would be worthwhile.

[neilyb675] 25/7/2023 17:31

At inception in 2007, the objective of the Company was to invest in a wide range of fixed income instruments including secured loans. This would allow the Fund Managers to take advantage of the credit cycle to increase the allocation to loans when interest rates rose, protecting investors against capital losses. It was also envisaged there would be opportunities for capital growth in periods of falling interest rates which would enhance total returns.



Quantitative easing and the persistence of negative real interest rates during the last decade were not envisaged at launch. As a consequence, returns from loans have looked relatively unattractive and the Fund Managers chose not to invest in loans because they felt a reasonable reward was not available for the risks taken. It is not clear whether this will change in the near future.



Of greater concern is the challenge to income in the future. We are very aware that shareholders are principally interested in the yield offered by the Company's shares. The sustainability of this yield, and the risks necessary to achieve it, are an area of increasing focus for the Board, especially as revenue reserves have diminished.



The Board are therefore concerned that the structure of the Company as originally envisaged does not allow the Fund Managers to preserve the real value of the capital of its shareholders, and feel that perhaps an alternative investment process could offer greater scope to provide a more consistent return to our shareholders. The Board have not reached any conclusions on these matters but will be considering options for the Company in the near term. We will report any recommendations to you as soon as we are able.



Outlook



As has been communicated before, the Fund Managers have a distinct view of the economic outlook. This has served the Company well in the past. As they describe in their report, they have positioned the portfolio to have longer duration and lower credit risk. This is consistent with their view of the global economy.



Their thesis is described in detail in the Fund Managers' report and I would urge shareholders to read it carefully. Such active management can result in significant deviation from the benchmark, hopefully positive but also, as we have seen, negative.



Angus Macpherson

Chairman

[thrugelmir] 25/7/2023 17:24

Liquidate the realisable assets , distribute the cash. Then merge the remainder.

[riverman77] 25/7/2023 12:36

Trouble is it is full of private/illiquid assets that wouldn't make a good fit for a more traditional equity fund to absorb.

[hindsight] 25/7/2023 12:29

Best outcome is a premium trust like cty or mrch takes it on 🙏🏾

[topvest] 25/7/2023 11:10

Of course there are lots of interesting possibilities for a trust of this size which was formed in 1898. In my view, the Board here is woeful. Let's hope they don't make another poor choice, after 2 bad options so far! Personally, I'd like to see a UK equity income mandate with a value style like Temple Bar.

[spectoacc] 25/7/2023 06:27

Swipe right (so my younger friends tell me).