Abrdn Diversified Income... Share Discussion Threads

[hugepants] 20/1/2022 14:52

Seems to have found a perch at this level. At 102.5p the discount to NAV is 15% and yield is 5.45%.

[neilyb675] 10/1/2022 12:04

Closing the gap to NAV (about time).

[cousinit] 09/12/2021 22:28

I hate to think what the discount might be without the formal policy of targeting less than 5%... Probably needs a performance related conditional tender type policy, say 25% of NAV can be elected into a run-off pool every 3/5 years instead of immediate cash tender given illiquids

[speedsgh] 09/12/2021 20:19

Annual Financial Report -

[excerpt]

Earnings and Dividend

A major component of the proposition to investors remains a dependable and regular dividend. Total dividends paid during the year represented a yield of 5.5% based on the year end share price of 100.0 pence. The Board confirmed, as part of the strategic review, its intention to continue to pay at least the current level of dividend. In addition, to cover the period before the new Private Markets' investments start to make distributions, the Board is prepared to use its revenue reserves, which have been built up by the Company over many years, to support the dividend policy as required, which also provides shareholders with a level of comfort regarding regular income payments.

Three interim dividends of 1.38 pence per share were paid to shareholders in March, July and October 2021. The Board is declaring a fourth interim dividend of 1.38 pence per share to be paid on 20 January 2022 to shareholders on the register on 24 December 2021. The ex-dividend date is 23 December 2021. Total dividends for the year are 5.52 pence per share, 1.5% higher than the 5.44 pence per share paid in respect of the year ended 30 September 2020. After the payment of dividends during the year, £1.1m was drawn down from the Company's revenue reserves.

For the year to 30 September 2022, the Board currently intends to declare four quarterly dividends of 1.40 pence per share or 5.60p per share in total, which will be the equivalent of an increase of 1.4% on the 5.52p paid for the year under review. As in previous years, the Board intends to put to shareholders at the Annual General Meeting ("AGM") on 22 February 2022 a resolution in respect of its current policy to declare four interim dividends each year.

Discount and Treasury share policy

During the year ended 30 September 2021, the shares performed broadly in line with the NAV return. The Company's discount (calculated with debt at fair value) narrowed from 19.3% at 30 September 2020 to 17.9% at 30 September 2021. The Board is fully 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 past year cannot be described as 'normal', it does not fully excuse the wide discount that prevailed at the year end.

Throughout the year, the Company continued to buy back shares and a total of 8.0 million shares were repurchased at a cost of £7.7 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. The Board will continue to monitor the discount on a daily basis and buy-back shares into treasury, or undertake share issuance if required, when it believes it is in the best interests of shareholders to do so, while also having regard to the prevailing gearing level and the composition of the Company's portfolio.

[continues]

[hugepants] 08/12/2021 12:44

Should be 10% higher imo. Results and Divi this month

[cc2014] 02/12/2021 14:10

1. The long term perfromance of the trust over the last 5-7 years has been poor
2. It now contains an increasing amount of private equity which markets value at a discount as it's so oblique.

There are other minor things. The management fee needs to be cut a bit, Aberdeen are out of favour. Also, it's a difficult trust to understand. It has about 600 holdings

[krowelet] 02/12/2021 13:38

Can anyone explain why ADIG permanently trades about 20% below NAV like no other trust that I know of.

[neilyb675] 24/11/2021 13:17

Aberdeen Diversified Income and Growth Excluding 122.04p Ordinary
Trust Undiluted Income
Aberdeen Diversified Income and Growth Including 123.69p Ordinary
Trust Undiluted Income
Aberdeen Diversified Income and Growth Excluding 120.23p Ordinary
Trust with Debt at Fair Value Income
Aberdeen Diversified Income and Growth Including 121.89p Ordinary
Trust with Debt at Fair Value Income

[hugepants] 10/11/2021 17:46

The latest factsheet.

[rcturner2] 22/10/2021 17:00

I bought in yesterday. I'm happy with the risk/reward here and I tend to buy trusts like this with a view to holding for a long time simply for the dividend.

[cc2014] 22/10/2021 16:42

I've sold out over the last couple of days.

I can't actually give a good reason other than the market generally feels a bit high and is making me feel excessively nervous. Additionally the rise in yield is nagging away at me too.

GLA. I honestly think the discount to NAV should be lower but it's had a very long time to adjust and it just isn't happenning.

[speedsgh] 22/9/2021 09:13

In case anyone missed it...

Third Interim Dividend -

The Board of Aberdeen Diversified Income and Growth Trust plc (the "Company") announces that it is declaring a third 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 30 June 2021.

The third interim dividend will be paid on 28 October 2021 to shareholders on the register on 1 October 2021. The ex-dividend date is 30 September 2021...

[scallywagkid] 22/9/2021 08:46

101 bid ... now that is a sight for sore eyes

[cc2014] 17/9/2021 11:11

The NAV makes 122p which is nice.

[krowelet] 17/9/2021 09:15

yes announced 1Sept.xd24Sept.The latest divi. to be paid was announced 10June xd 17June.

[hugepants] 15/9/2021 13:45

Q3 dividend announcement due. It was beginning of sept last year.

[rich1952] 14/9/2021 17:14

Would be good to pass and hold on to 100p. We just don't seem to be able to firm up at that level.

[cc2014] 14/9/2021 13:17

Latest portfolio holdings out for August. Looks like TF ABS fund trimmed again from 7.4% to around 6.7%

[8w] 07/9/2021 18:11

ABS investments in TF will include a large proportion of FRN's...useful should interest rates rise

[riverman77] 07/9/2021 13:44

I've done a bit of work on this and think it could be a buy. Looks like the NAV did very badly in autumn 2018 but this should shortly drop out of the 3y numbers - optically this will make performance look better and should help.

From what I can tell the main thing that weighed on earlier returns was the big position in catastrophe insurance linked instruments, and the excessive and expensive gearing. Neither of these should be an issue going forward and of course we have a new manager.

The other thing that hasn't helped is they have been very slow establishing the positions in the private real asset funds - it takes quite a long time for these things to get invested and start to produce returns. The good news is these now seem to be up and running and should do well hopefully.

Regarding the ABS investments, I am pretty relaxed about these as I believe they are mainly senior tranches on very comfortable LTVs so very low risk (would probably need a 30% fall in house prices for these to be at risk).

[cc2014] 07/9/2021 13:25

NAV now 121.54.

Market can remain irrational longer than I can remain patient.

I'm hold on for the moment though.

[cc2014] 03/9/2021 12:24

The NAV continues to increase but the discount to NAV is growing resulting in the share price clawing it's way up. Plenty of buyers but some very determined sellers and 100p seems to be a barrier for the moment.


I have just taken a look at the July factsheet and I'd delighted to see they have trimmed the Twenty Four Asset Backed Opportunties Fund (mostly Residential MBS and CLO I think) from 8.0% to 7.4% compared with June.

I like this move as I perceive this market to be near a high and ADIG have done well from it over the last year. It would be great if they sold the whole lot and used the cash to buy back more shares.

[essentialinvestor] 23/8/2021 15:56

Spec, wish I had bought some NSI, looked at that so many times as well,
but the % spread out me off - in other words excuse making!.

When working in sales many moons ago missed my first ever monthly target and attempted
to offer an explanation to my then manager - he replied ..excuses, bullsh1t, reasons!!.
Never missed another one.

My area area at the time was the wife of a Michael Page main board director,
remember her telling me you could put your house on this, that was circa 1993,
the share price was 76 pence from memory.

[cc2014] 23/8/2021 09:35

Investment objective (effective from AGM date of 23 February 2021)
The Company seeks to provide income and capital appreciation over the long term
through investment in a globally diversified multi-asset portfolio.

Performance measure
NAV total return (defined as change in NAV plus dividends reinvested) of 6% per annum
over a rolling five year period.