Abrdn Diversified Income... Share Discussion Threads

[hohum1] 26/10/2023 07:40

Oh dear. They haven’t even promised to stop new private investments. The continuation vote may be interesting…

[spectoacc] 26/10/2023 07:10

Hey shareholders, have 1.65p, and some vague promises to return capital in 2024/2025, and a small tender sometime at 15% below NAV..

I paraphrase, but...

[hohum1] 25/10/2023 11:57

I recall from one of the past reports or presentations that the Global Private Markets and TwentyFour funds have 3-6 month dealing so that's another 12% easily sold. A lot depends on whether Abrdn will help find buyers for our stakes in the private funds they manage (SL Capital, Bonaccord, Andean and Secondary Ops IV on the top 10 list plus Global Infrastructure and some property funds as I recall) and at what prices...

[hugepants] 22/10/2023 20:38

Why not? Anyway the portfolio is only 12% PE.
And this trust has no gearing. It had 2% net cash at last update. That simplifies things a bit.

Top Ten Holdings at end August

SL Capital Infrastructure IIC 8.1%
iShares II UK Gilts UCITS ETF 7.3%
abrdn Global Private Markets Fund 6.0%
TwentyFour Asset Backed Opportunities Fnd 5.7%
Burford Opportunity FundC 5.2%
HealthCare Royalty Partners IV 4.9%
Bonaccord Capital Partners I-A, L.P. 4.5%
Andean Social Infrastructure Fund I LP 4.1%
iShares Core 3.5%
Aberdeen Standard Secondary Opp Fund IV 3.5%

Total 52.8%

The 2 iShares holdings for example are worth 10.8% and they should be able to sell these easily. They have another approx 10% in listed alternatives such as 3IN, CORD, GABI, HICL, NESF, PRSR, SHIP, SEQI, TRIG, UKW etc. So is there any reason they can't realise a big chunk of the portfolio quite quickly if they go down that route? (then again probably better waiting till the end of the year instead of selling at the bottom).

[ferrox5] 22/10/2023 18:51

I can't see who would want to merge with ADIG. JARA and MAJE are the only UK listed things that are vaguely similar but why would they want to take on the Aberdeen PE?

[spectoacc] 20/10/2023 16:58

It's grim. Tbh a wind-down that takes 5 years is going to leave a rump trading at probably a 40% discount. Best option is let all those idiots who wanted to stay in on previous votes, stay in, and let the rest of us out on a cash exit at say 5% below NAV less costs.

Or - roll it over into something else, if too many go for the cash.

[hohum1] 20/10/2023 16:55

The longer this takes the more I think it is going to be put into run off. By my reckoning, we'd get close to half back from the near liquid investments within 3-6 months and the rest over 3-5 years. Probably get out at a 5-10% discount to NAV overall. There is a prospect of a decent uplift from investments such as BOF which will offset the trickier property and opaque credit vehicles. I hope I'm wrong and the Board come up with something better...

[essentialinvestor] 18/10/2023 16:19

Doubled my small position at around 74.5, also brought back into RIT.

Equity markets looking increasingly ugly.

[essentialinvestor] 11/10/2023 13:49

With respect that's ridiculous. You can buy CLDN on a near 40% discount to NAV,
they have a consistent record of returns.

The current ADIG discount is nothing out of the ordinary and arguably given the last
few years of capital destruction, it's a wonder the current % discount is not larger.

[thrugelmir] 10/10/2023 15:58

The world has been reset. Just be one of many.

[hugepants] 10/10/2023 12:05

Makes you wonder what kind of deal this lot have cooked up.

[hohum1] 10/10/2023 08:00

Discount now close to 30% - everyone losing patience with the Board. There must be loads of detailed proposals to go through for it to take so long! Surely we should get at least 25-30% of our cash back at NAV from the liquid investments. That would equate to a 7-10% kicker but it needs to merge into something that will trade much closer to par for this review to be in any way worthwhile.

[essentialinvestor] 09/10/2023 14:12

Also there is arguably a questioning of ADIG credibility following
frequent mandate changes and very significant capital destruction over the past
7/8 years.

[essentialinvestor] 09/10/2023 14:02

HP, tbf it's not a perception of 'made up', perhaps some opaqueness as
many of the holdings are not subject to daily pricing?.

[atlantic57] 09/10/2023 13:37

As long as they are not under any pressure to liquidate the assets I guess whatever nav is ,it is not significant as I suspect they are not under pressure to liquidate .

However if the stock market suddenly takes a dive this is more vulnerable because of perceptions.

[hugepants] 09/10/2023 13:17

But nearly all the infrastructure trusts and renewable trusts are 100% private markets investments. Adig is only 50%. I'm more confident in adig's nav than those and the reits. I've no idea where the perception adig's nav is "made up" has come from.

[atlantic57] 09/10/2023 13:12

Huge Pants the main issue here for me is what is the true net asset value.
I suspect if the market generally tanks these will fall like a stone.

[hugepants] 09/10/2023 12:45

But surely risk-adjusted is attractive? You can get 9%-10% just now on some trusts but these typically have 35-40% gearing and single asset type. And they don't have a value outing announcement possibly imminent.

[spectoacc] 09/10/2023 11:56

78/79. ADIG trading as if no review was ever instigated.

[essentialinvestor] 06/10/2023 13:01

You have to just marvel at the value destruction here, it really is something to behold.

Added back what I sold over 84 pence.

[hugepants] 06/10/2023 12:53

Online buy price is currently 0.2p less than the sell price.

Discount is 27.5% and yield now over 7%. Not bad for a trust with net cash and exploring options for increasing shareholder value.

[spectoacc] 04/10/2023 09:08

Form a committee to determine what brand of matches it was.

[essentialinvestor] 03/10/2023 13:36

You would hate to see this lot if a fire broke out in a room.