Abrdn Diversified Income... Share Discussion Threads

[essentialinvestor] 15/12/2023 10:53

Spec, I'm guessing you won't agree with the above.

[spectoacc] 15/12/2023 10:05

I've the disadvantage of still being in loss here, not that that should influence investment decisions. But suspect I'll wait until after the first big payout, then see if the mood music has changed on timescale/likely quantum.

Agree re Opportunity Cost but sat on a lot of cash already - the market's completely wrong on UK rates IMO (not for the first time).

[essentialinvestor] 15/12/2023 10:02

Also got to factor in the opportunity cost of holding v investing elsewhere.

I sold yesterday and tbh had given up hope of exiting without taking a loss - had bought back in over 80 pence.

I recently posted the last British Asset's monthly NAV, before it went to BlackRock. If you look at that number, account for inflation and equity market increases since then...shambles is being very kind indeed.

[mwj1959] 15/12/2023 09:55

There are probably easier realisation stories out there and I'm sure there will be more in due course as the IT sector goes through a much needed realisation / merger process to deal with the massive and persistent discounts that currently exist. Large discounts are clearly attractive for the LT investor, but getting hold of the money in a timely manner is the challenge, particularly as these large discounts are almost exclusively in funds holding private and illiquid assets. But at least boards seem now to be succumbing to investor pressure to do something, even if it is not necessarily optimal. Plenty of opportunities for the patient I suspect.

[spectoacc] 15/12/2023 07:02

Been a shambles, backed it has to be said by the major holders.

Big question is how soon they can offload all the private stuff - significantly sooner than 9 years, and at not less than current NAV, is my guess. Be surprised if it's not all done & dusted within 5 years, with a decent income along the way.

[topvest] 14/12/2023 18:59

Well today's announcement underlines what a sub-standard board we have here. First they move from a BlackRock poor strategy to an even worse abrdn one that takes 10 years to unwind, no doubt with the incentive of keeping things going and then they mess-up the Strategy Review. British Assets, a 125 year old golden olide, deserved much better. Anyway, I suspect we will get a 2024 partial return and then things may change again with the private assets portfolio.

[riverman77] 14/12/2023 11:39

I'm thinking of the overall return if you invested today (and factoring in the share price rise this morning). I guess there is scope for the value of the illiquid investors to increase over time, plus any income they produce. Might look into it a bit more when I get a chance.

[hugepants] 14/12/2023 11:34

But its a 50% uplift (after cash return), plus dividends

[riverman77] 14/12/2023 11:28

Can't say I'm tempted - you might have to wait a good 5 years for a c30% uplift (assuming they can eventually sell around NAV). Much better opportunities elsewhere.

[hugepants] 14/12/2023 11:22

I just think no-one likes private markets! IMO what's left is still an attractive proposition given it's generally income producing and it's well diversified over stuff like infrastructure, real estate, private credit, private equity etc. I'm getting an effective 38%-40% discount after the cash return. That's way too high imo for an ungeared vehicle that should still be able to generate a sizeable dividend and is in wind up mode.

[cousinit] 14/12/2023 10:21

Might get me another down vote, but as Specto has said before, this will become an eclectic mix of immature illiquids so chunky discount could easily be justified.

HP - you did tempt me in when this didn't bounce from October, but I've banked the 10% this morning.

[hindsight] 14/12/2023 10:11

better late than never

[hugepants] 14/12/2023 08:37

Share prise rise looks muted. 38p to be returned in H1 plus ex divi next week.

[essentialinvestor] 14/12/2023 08:10

At long last.

[neilyb675] 14/12/2023 08:03

81.20 - 84.00 (GBX) at 08:03:53
on Market (LSE)

[cousinit] 14/12/2023 07:47

Over the next decade...

[scepticalinvestor] 14/12/2023 07:45

So what 111p returned to sh then?

[spectoacc] 14/12/2023 07:24

Post #600: "They won't make 2026 without another review IMO, let alone 2032." Wasn't expecting it this fast tho :/)

[tiltonboy] 14/12/2023 07:20

Excellent news

[spectoacc] 14/12/2023 07:06

FINALLY. This should have been the result 3 years ago.


" the Board expects that approximately £115 million would be returned to shareholders in the first half of 2024 at, or close to, NAV (subject to shareholder approval and the appropriate use of the Company's distributable reserves) with further returns of cash to follow as value is realised from the Company's private markets portfolio in a timely and efficient manner as laid out below;

· approximately £107.3 million of the Company's private markets portfolio (valued as at 30 November 2023) is expected to mature between 2024 and 2027 (the "First Tranche"). It is intended that the proceeds from the First Tranche will be returned to shareholders in a timely manner as the investments mature;

· the remaining £81.5 million of the private markets portfolio (valued as at 30 November 2023) is expected to mature between 2029 and 2033 (the "Second Tranche"). As market conditions improve, opportunistic secondary sales of Second Tranche assets would be considered by the Company in order to realise value from these assets in a timely manner;"

[hohum1] 14/12/2023 07:05

Managed wind down announced… Feedback for their last proposal was clearly short and sharp!

[davebowler] 08/12/2023 15:22

Abrdn said it would reinvest the fees as and when it received them from trusts, such as Abrdn Diversified Income & Growth (ADIG), which has fallen out of favour and languishes on a wide 30% discount. Its board recently decided to continue the trust having held a strategic review of its future.

[hohum1] 30/11/2023 15:54

Fully agree, Tilton. While the discount is close to 30%, new investments make no sense. I’m voting against the directors up for reelection and against continuation at the AGM…

[tiltonboy] 30/11/2023 12:55

A large % of the assets are in Private Markets and are illiquid. A long time to wait to see if they are really worth what they value them at!

A nice dividend and some capital returns over the next few years. The board needs to return ALL funds raised and not make any new investments.