Abrdn Diversified Income... Share Discussion Threads

[riverman77] 05/3/2021 16:17

To be fair, the portfolio looks fairly decent and inoffensive as it stands today. Nothing I would describe as junk. Would expect it to deliver fairly reliable source of income. The earlier poor performance under the previous Aberdeen fund manager (I'm not talking about before that under Blackrock - less said about that the better) seems to have largely been due to a large position in catastrophe instruments and large amount of very expensive debt. These have both been cleared, and there is a new manager in charge.

[essentialinvestor] 05/3/2021 12:15

How accurate are the daily NAV updates given the level of unquoted?.


I see it's down to a 1 star rating now.

[greenpastures2] 05/3/2021 11:54

I bought for the income around about that price.

[cc2014] 05/3/2021 09:56

Is 92.22 a good price? A bit of a rhetorical question as I committed to the buy button.

Looks like we continue to have a large seller in the background

[hugepants] 24/2/2021 12:42

The discount is way too big though. It's nearly 17% compared with the 5% target. I think it will close at some point. They should be cranking up the buybacks. The company has cash and negligible gearing so they can afford to.


Discount Management

During the year ended 30 September 2020, the shares performed poorly relative to the NAV return with the result that the discount to NAV moved from 7.6% to 17.2% (all figures calculated with debt at fair value and excluding income). The Board is very much aware that this level of discount is inconsistent with the previously stated policy which is to seek to maintain the Company's share price discount to NAV (excluding income, with debt at fair value) at less than 5%, subject to normal market conditions. Whilst the latter half of the year under review cannot be regarded as 'normal market conditions' given the extraordinary uncertainties relating to COVID-19, it does not fully excuse the wide discount that prevailed at the end of September 2020. Through the year, the Company remained committed to buying-back shares and a total of 5.65 million shares were repurchased for a value of £5.7 million. The Board, however, feels that in order for the share buy-back to be truly effective performance improvement from the portfolio is an absolute priority, so it will continue to make some allowances for both market conditions and the changes to the portfolio that are set out in this Report

[speedsgh] 24/2/2021 12:34

ADIG has been a serial underperformer for years. Unless you're looking for a quick trade, I would employ the bargepole. About time that the trust was put out of its misery and wound up. Aimho.

[cc2014] 24/2/2021 12:30

Share prices fell overnight in the East while we were sleeping, which is the danger here. If we get a pullback in markets (generally) of say 5% which in my imho would not be unreasonable, will the sharprice fall or will the NAV close? I'd bet on the share price falling.

I am watching. I'd like something around 92-93p to entice me to press the buy button. I don't think that very likely but there again this market is mad. Who knows where it is going next, but I fear more than anything we haven't had a proper pullback in months since all this retail money came into the market and I wonder how many stops will fire once it starts falling. Not, that I think there's much speculative retail money in ADIG but if the market starts falling everything will go with it.

Who knows. If you had asked me yesterday I'd have said I'd got no chance at 93p and it would require a big sell-off and distressed sellers. Today it's only 3 percent away which looks do-able.

[speedsgh] 24/2/2021 12:00

And yet still the share price languishes 16% below pre-Covid levels and at a mid-teens discount to NAV.

[hugepants] 24/2/2021 11:27

dividend increased to 1.38p per quarter

[greenpastures2] 03/2/2021 13:40

It does seem to move around quite a bit so if you hang on you might well get another chance. I sold last February for 104 and took quite a loss but was able to buy back in the summer for 91p. I have stayed put since.

[cc2014] 03/2/2021 12:51

hmm. Well it seems I got greedy.

Bought a small amount last week at 94p and was rather hoping I could keep adding more aggressively as it approached 90p.

That doesn't look likely now with buys going through at 99p

[hugepants] 22/1/2021 15:52

The discount is over 15% again

[neilyb675] 18/12/2020 17:19

Aberdeen Diversified Income and Growth Trust (ADIG) has a diversified multi-asset approach, aiming to generate attractive long-term income and capital returns. After a strategic review in October 2020, the manager intends to increase the share of private assets in the portfolio to 45% by Q221 and to 55% over the long term (vs the previous c 43% target). ADIG's investment committee will now be led by Nalaka de Silva, head of private market solutions at Aberdeen Standard Investments (ASI). While ADIG's NAV TR performance has lagged the benchmark in recent years, the shares continue to offer an attractive FY21 yield of 5.8% (based on ADIG's dividend guidance). The manager's plan to maintain or increase dividends should be supported by the lower interest expense post the partial bond repurchase in early November 2020 and the use of revenue reserves.



ADIG's NAV TR performance has lagged its benchmark (Libor + 5.5% pa) since the strategy change in March 2017 to an increased focus on less liquid assets. The NAV discount has widened to c 10-22% since end-March 2020 from 5% before the COVID-19 pandemic. The last 12 months (LTM) dividend yield is 5.7%, ahead of its peers. We note that in FY20 dividends were covered by earnings.

[mister md] 17/12/2020 15:51

Shareprice is moving in an upward channel. It's slow. It's boring. But it's moving up, with dividends along the way.

[greenpastures2] 16/12/2020 20:17

It does mean that there are less shares to pay future dividends on.

[rich1952] 16/12/2020 11:14

The aggressive buy back policy isn't holding the share price and it can't continue indefinitely. More sellers than buyers despite the attractive divi. I don't know where we're heading on this one.

[essentialinvestor] 14/12/2020 10:44

Problem is they can't keep buying back indefinitely and where would

the % discount to NAV be without the large current buy backs?.

[rich1952] 10/12/2020 20:28

I emailed the Chairman who has personally responded to me in the past but this time a reply via her bag carrier simply repeating the mantra.I wish they would wind it up ASAP but they won't. What is the point of a trust no one wants to buy!

[tiltonboy] 10/12/2020 19:51

They must be dismayed that the heightened buy-backs is not having a meaningful effect...others won't be surprised. At some stage they might realise they are flogging a dead horse.

At what stage do they admit it's a futile exercise!

[hugepants] 07/12/2020 11:17

NAV 114.48p so on a 17% discount and 5.6% yield.

The discount control mechanism is not working at the moment obviously but they did reiterate the 5% target in the interims.

[scallywagkid] 04/12/2020 18:37

There seems to be an open tap of selling into the buy back. They could hire a broker with a proven small cap investment trust IR capability - such as Peel Hunt - rather than a transaction focused broker and then get out on the stump. Could also look to hire a PR firm.

[rich1952] 04/12/2020 17:01

I'm struggling to understand the MO here. Whilst the rise in the share price is welcome, it seems that this is only due to the constant buy back of the shares by the Company in an attempt to reduce the discount. If the share price can only be maintained by using buy-backs, what is the point of continuing in business? They might as well dissolve the fund and let us have the underlying value of the assets.

[rich1952] 27/11/2020 16:04

No matter how many they buy back, the price is not maintained.I just don't see a future for this trust.

[essentialinvestor] 25/11/2020 12:40

Right, questions answered on the latest factsheet.

And another review of the portfolio with changes made.

You could not make this up.