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ADIG Abrdn Diversified Income And Growth Plc

0.20 (0.26%)
Last Updated: 09:49:09
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Abrdn Diversified Income And Growth Plc LSE:ADIG London Ordinary Share GB0001297562 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.20 0.26% 76.40 75.60 79.40 79.60 76.40 79.60 139,204 09:49:09
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Trust,ex Ed,religious,charty 3.49M -299k -0.0010 -764.00 236.21M
Abrdn Diversified Income And Growth Plc is listed in the Trust,ex Ed,religious,charty sector of the London Stock Exchange with ticker ADIG. The last closing price for Abrdn Diversified Income... was 76.20p. Over the last year, Abrdn Diversified Income... shares have traded in a share price range of 72.40p to 89.80p.

Abrdn Diversified Income... currently has 309,177,359 shares in issue. The market capitalisation of Abrdn Diversified Income... is £236.21 million. Abrdn Diversified Income... has a price to earnings ratio (PE ratio) of -764.00.

Abrdn Diversified Income... Share Discussion Threads

Showing 176 to 200 of 750 messages
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Ah, that's the one - that's for the reminder.
Dear Mr. SpectoAcc,

We note that you have arrived at ADIG, probably attracted by some discount in a table seeking a low risk stock paying a decent yield.

We regret to inform you that all such stocks have been pumped up to the sun, moon and stars by quantative easing and if not by that by very many posts on Twitter.

Research shows that if you scavange every single stock in the universe of possible choices and put in very many hours of research it may be possible to find the odd gem of a possibilty. It won't actually be a gem, it will still be over-priced, but if the share price where to drop 2% that would probably be enough to encourage you to execute the buy button with your broker.

Regrettably, our research also shows that should any such stock actually drop 2%, there will be only extremely low liquidity and there are another 10,000 investors in the same position as yourself all ready to pounce on the opporuntity of a lifetime. 9,999 of these investors will be less risk adverse than you and be willing to press the buy button first.

That's what it feels like to me anyway. The only stuff I can find to buy is stuff I already own and I'm reluctant too as I've got enough already or I just need the share price to drop a bit but it never quite gets there. I'm happy with my investments but would prefer I had far more holdings than I do.

Enjoy ADIG whatever you do. It's a good story. Whether it's a good investment at 98p only time will tell

Yes they have music royalties too. I thought it was an American company and not SONG. Need to check

They sold SONG in February, and bought Round Hill


British Assets, then Black Rock Income Strategies. It should have been wound-up years ago...and still should be!

He sounds more level-headed than I expected (still listening).

6% pa and capital growth, with low equity correlation. Yet interest rates are 0.1%. Not convinced. Emerging market bonds, CLOs - great, when going well, but can go very wrong. Not convinced there's a rolling 5yr 6% annualised that also has very low risk. Sure, you'd hope for nearer 8% from equities longer term, but you'd have to accept 50% downside too.

ADIG seems to be punted at the riskier end, both in liquidity and asset class, whilst claiming to produce a low-risk 6% pa by virtue of being diversified across these assets, LTCM-style.

Social housing, PE, CLO, bonds, healthcare royalties, EM bonds - can buy ITs in all of those. Just waiting for him to mention music streaming :)

Does the discount account for the hidden risk...

Discount to NAV is at least partly because of repeated failures to hit the Trust
mandate under various incarnations/guises. Formally British Assets Trust (from memory)
then a mandate and name change which completely failed - the name escapes
me now. Next it became ADIG and failed again to perform leading
to an investment review, another new lead Manager from the same stable ...

I take the point about the rest of the market being priced for perfection etc.

[@hindsight - I'm getting larger into the REITs! Still more to go IMO, now the NAVs are rising and divis being (slowly) reinstated.]

Hope your right, some M&A is needed on a lot, too many over feed turkeys

@Specto - Here is the link to the playback of the QuotedData presentation by ADIG's Nalaka de Silva from May this year. Possibly useful as part of your reseearch...
Thanks both. Agree on discount point, and yield. Perhaps buybacks narrow the discount (but I think it deserves it). I challenge any holder to read this snippet and think it should be trading at par:

"At end-November 2020, the second largest exposure was the TwentyFour Asset Backed
Opportunities Fund (c 8.6% of NAV). It has a substantial exposure to residential mortgage-backed
securities (c 51% at end-July 2020) as well as collateralised loan obligations (30%), while the
remaining portfolio included auto loans (6%), consumer asset backed securities (6%), commercial
mortgage-backed securities (4%) and cash and equivalents (2%). At end-July 2020, 25% of its
portfolio was rated at A and higher, 9% at BBB, 35% at BB, 23% at B, 2% at CCC, while 7% was
not rated. ADIG’s manager thinks that the default rate on medium-risk securities is currently low as
many of the underlying borrowers are in areas supported by government and central banks’
schemes. The fund has outperformed UK equities by over 15% since its launch in early 2017 to
July 2020, exhibiting much lower volatility than equity investments, according to the manager. While
its six-month performance to end-March 2020 was negative 15%...."

Wonder how many ADIG holders know about CLO exposure, albeit not large overall.

[@hindsight - I'm getting larger into the REITs! Still more to go IMO, now the NAVs are rising and divis being (slowly) reinstated.]

@CC2014 - unconvinced the money isn't still being sprayed around. Struggling to see where the outperformance comes from.

Tried the website link "Diversification 4.0: the past, present, and future of diversification":

"Company Proflies" has only this one:

Which again, talks a good game, but again, find myself either questioning the quantum of the returns, or thinking "why would you invest in anything else?". And again, returns well above what ADIG are targeting:

"The fund has a target return of 8-10% p.a. net of fees, half of which is expected to be generated from income. The Company committed €28.5m to SLCI II in 2018, the majority of which has been drawn and invested in a portfolio of solar farms in Poland; a UK rail rolling stock investment; two district heating investments in Finland and an energy storage business operating in both Germany and Belgium."

Wonder where that 2018 investment sits in NAV terms now?

I like the game they talk. I'm not convinced they're also walking the walk, nor that multi-asset, multi-manager, almost absolute-return funds work.

Paid-for Edison note just repeats management per usual, but interesting seeing the table of changes since 2019, & therefore where the fund's heading in terms of allocation.

SpectoAcc. Welcome to the Board. I'm sure we will all be interested to see your outlook when you have got to the end of your research.

For my part the decision process is pretty simple. Does the super large discount outweigh the checkered past of the IT, the morningstar rating of 1 and everything else there is not to like.

I concluded long ago that this is absolutely the sort of Trust I hate, a sort of fund of funds spraying money around anywhere they can find some yield to fit the target return. Or at least that's what the previous fund manager did who got ADIG into a right mess. I'm far more comfortable with the new manager although he is yet to deilver what he promises but no concerns of yet. There's a helpful video by him which if you scroll back there will be a link. Well worth a watch.

It is my view that as the market becomes more comfortable with the new fund manager the discount will close to around 10% and the closing of the discount outweights my concerns over some of the investments. I am however now wondering if the amount of P/E makes ADIG more opaque and this in itself may constrain the closing of the discount.

The yield is apparently nearly covered this year but will be going forward which is a better position than many of the IT's paying this sort of yield. Also, some of the funds ADIG is invested in are trading at a discount too so that's a discount on top of a discount (or at least they were when I bought, I haven't checked recently)

ADIG is about 1.5% of my portfolio and I own none of things it's invested in and it holds a bunch of stuff which spreads my risk compared with my other investments

All about the discount for me, there are very few free lunches in the income field, the grass was eaten down a long time ago. Any any good arbs that appear will be in closed funds and any tail risk will be open funds. Why last 12 months have been buying in reits, etc. But the grass in that field is looking well eaten too now.
Guess the test will be how it performs in a bear market. Is it just a fund-of-funds of mostly the same thing, or is there genuine diversification. If there isn't, why hold so many.

Do quite like the Aberdeen Global Private Markets Fund write-up, albeit it's a holy grail I bet they'll struggle to achieve, particularly now. And unsure why you'd buy anything else - ie why you'd dilute what this fund is offering:

"Return potential
In the current environment, fully-priced equity markets and
ultra-low bond yields mean that returns from traditional balanced
investment portfolios are likely to be very modest in future. At the
same time, diversification is harder to find – the world economy is
more closely connected than ever, with financial markets
inextricably linked.

But in a private market universe – spanning private equity,
private credit, real estate, infrastructure and natural resources –
an asset class can be less sensitive to economic forces and,
therefore, less cyclical. Many of the assets underlying private
market investments generate cash flows that are driven by
reliable, long-term contracts. Examples include renewable
energy-generating farms, schools and hospitals.

For decades, most investors have relied exclusively on assets listed
on public markets. Yet, higher returns are often available from
unlisted or privately held assets like private equity, private
infrastructure, real estate and private credit. Private assets
typically offer higher returns than their listed counterparts
because investors are rewarded by an illiquidity premium.
Strong demand for private markets in recent years indicates this
premium is still appealing, given the low returns expected from
listed assets. Furthermore, many private assets offer a substantial
income return.

Moreover, as well as attractive return potential, GPMF also offers
diversification benefits, either on its own or as part of a wider
portfolio. This is because returns from the underlying assets have
a low correlation with both listed markets, and with each other.
This lowers overall portfolio risk. It means we can aim to construct
a lower-risk portfolio with a higher expected return than public
market equivalents.

In an environment of very low government-bond yields and
sluggish global growth, we believe the Fund is well-positioned to
deliver better return prospects than traditional balanced portfolios
while, at the same time, preserving defensive characteristics."

I do look upon it as giving me some exposure in stocks and funds that I would not otherwise access. I haven't gone overboard with about 2% of my portfolio and regard it as a useful little earner.
Thanks @hindsight. Agreed, and would hope ADIG gets lower fee level than could get direct, particularly on the Aberdeen funds.

[Edit - headline fee on the largest Aberdeen fund is: "Management fee: 85bps, OCF: 145bps". That for a fund holding 10% in cash].

There's fees beyond the 0.6% pa coming out of ADIG - tho probably not all that high, since trading should be minimal.

Still - fact remains it's only a buy thanks to the discount, and the hope of that getting to 5% or even to par seem optimistic. There's surely little clever in bundling together multi-asset funds into an IT, other than to hide the possible riskiness of the bond & CLO holdings.

SpectoAcc could argue the discount covers the fees ie using your 7%-0.6% = 6.4% and 20% discount get 8.0%

Answering own q's via Google:

TwentyFour Asset Backed Opps Fund
"The Fund aims to provide an attractive level of income along with an opportunity for capital growth. The Fund aims to target a net total return of GBP 3 month Libor* + 5% – 8% per year. ... The Fund will choose bonds based on their risk and the attractiveness of their income."

So presumably corporate/higher risk bonds, and targetting a return above that of ADIG's.

Aberdeen Standard Global Private Markets Fund:

Not at all sure about this one:

"A ‘one-stop’ solution offering
exposure to global private
markets for investors
with liquidity and
regulatory constraints "

So why would you want to hold anything else? And 15% in CLO's or equivalent. Worth looking at the spread of what this fund is in.

Neuberger Berman CLO Income Fund

"The Portfolio aims to achieve an attractive level of total return (a combination of capital appreciation and income) by investing primarily in USD and EUR denominated floating rate collateralised loan obligations (“CLO”) mezzanine debt securities and also in US high yield debt securities"

As expected. Again, look at the yield on FAIR, or the slightly different TORO.

Concluding there's a lot more risk in ADIG than is first apparent. Predominantly a selection of funds that generally aim for a higher headline return than ADIG's, presumably to account for the 0.6% & listing fees. And what you're ultimately in may not be what you think you're in, and the diversification of holding many different funds may not work if they're all diversified in the same things.

Or put another way - I could set up an IT that promises 6% pa, then invest it in a bunch of other funds that promise 7% pa. The only reason to punt the IT would be the discount. Otherwise, just punt the funds themselves. In the meantime, I'm getting a tidy income from deciding which funds to go into.

New to "new" ADIG, trying to get head around what it actually holds now.

From Factsheet:

TwentyFour Asset Backed Opps Fund - what's that actually in?
Aberdeen Standard Global Private Markets Fund - ditto
Neuberger Berman CLO Income Fund - is that what I think it is, CLO's?

Various other funds below that. So double-dipping on the fees? They're low at Trust level (0.6%) but paying at the investee co level.

And how often do the PE-style ones revalue - presumably qtly, for previous qtr, so a dip like we've had this week doesn't show up for ages.

Does the yield come all from income, or is some of it capital? Other than the smattering of renewable ITs, not seeing steady divi payers.

Attracted by discount & yield, but put off by opaqness of holdings, double charges, and what to me seems a low target for the risk taken (rolling c.6% pa when eg CLO funds yielding 10%+)

At last the buyback has kicked in again. Not before time..
It looked for a while that the discount was beginning to close here but its back up to 17% with NAV at 119.3p. The NAV is now pretty much where it was pre-pandemic but the share price is more than 10% lower. Feels really low risk with that discount, diversification, negligible gearing and above average yield. De Silva looks to be doing a bit better than the previous shower that were running this trust but not reflected in the share price!
Roll of drums. 100 on the bid and holding.
9 June 2021

Second Interim Dividend for the year ended 30 September 2021

The Board of Aberdeen Diversified Income and Growth Trust plc (the "Company") announces that it is declaring a second interim dividend in respect of the year to 30 September 2021 of 1.38 pence per share on the Ordinary shares of the Company in relation to the quarter ended 31 March 2021.

The second interim dividend will be paid on 15 July 2021 to shareholders on the register on 18 June 2021. The ex-dividend date is 17 June 2021.

I added a few more this afternoon. It is invested in things in which I would never have any exposure otherwise.
"The discount is too large..."

Agreed and I don't understand why it's still at 17%. It was 5%-6% pre-pandemic so there is an easy 10% upside here even if NAV treads water. In the meantime collect the 5.7% yield!

There is also opportunity cost, what else were you looking at and how has
that performed over the same timeframe etc.

My cat Gump, not known for his intellect, could make returns in current market conditions.

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