Acencia Share Discussion Threads

[soi] 16/8/2013 10:01

SKYSHIP

Thanks for mentioning ACD, maybe over on the FIX board initially, then found your PE topic.All new to me but very interesting.I`m going to do some more reading over the week end and maybe buy some ACD early next week.( I have none )

You do come up with some good finds.

Cheers

soi

[skyship] 16/8/2013 09:25

Iti - sound decision. Do you have a final payout target?

As stated before, I'm still targeting a liquidation payout of 115p/117p on 31/03/2015. May well prove to be a tad conservative.

For 115p the GRY @ 97.75p = 10.55%pa; add in the 3.76% current yield and the Total GRY = 14.31%pa.

Interesting to note that for 117p on 31/01/2015 the GRY @ 97.75p = 13.11%pa; add in the 3.76% current yield and the Total GRY = 16.88%pa. Now that would be very nice indeed!

ACD remains my largest holding by quite some margin.

[ltinvestor] 16/8/2013 08:18

Have been monitoring this company for a while and finally picked up 25000 this morning for my portfolio after reading todays statement and in particular the word "robust"!

[skyship] 16/8/2013 08:00

"Interim dividend of 1.87p declared, representing an annualised dividend yield of 3.8% based on the closing share price of the Company of 97.5p on 15 August 2013"

Also a pretty positive Chairman's Statement. More than suggests further good upside for the NAV this year and next.

[skyship] 14/8/2013 11:57

Yes - a welcome 1.3% increase over Jun'13. Sp back up to 97p bid - again!

[gary1966] 14/8/2013 09:28

Nice increase in NAV in July. Back to 108.38p.

[skyship] 29/7/2013 11:50

Itinvestor - thanks for that. I've answered over on the Private Equity thread:

[ltinvestor] 29/7/2013 09:36

>Skyship.You might want to investigate bcap which is Jon Moultons pe vehicle.The 2009 cell has a number of substantial businesses which were purchased at distressed prices and turned around( exception Readers Digest)They are now yielding cash and over the next couple of years will ,imo, be paying out significant dividends.The share price is a few pence above the nav but this has been calculated in a very conservative manner.I feel that the true nav is much higher than the present share price and a good return is to be had here over the next couple of years.An additional bonus is that there appears to be no pi interest which is often a good sign!

[skyship] 24/7/2013 16:33

Interims were on 17th August last year - so only c.3 weeks to wait for the declaration of the next dividend - 1.87p perhaps...

[mozy123] 24/7/2013 13:01

Big spender Sky - good luck!

[skyship] 24/7/2013 09:30

250k bought @ 96.5p - looks like the first buyback.

[skyship] 12/7/2013 09:09

Agreed - happy with that...

[redhill9] 12/7/2013 09:08

NAV for 30 June published this morning as 107.03p, a decrease of 0.95% versus the Net Asset Value per share on 31 May 2013, so seems considerably better than might have been expected?

redhill

[skyship] 04/7/2013 17:08

Hmm. The Saltus Monthly Portfolio summary suggests we should perhaps be prepared for a 2p-3p fall in the NAV for June:

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Portfolios

Our current views are indicated below in the summary table. They are unchanged on the month although we are very close to making a decision on switching some of our Asian exposure into Japan, as one region may be exiting a period of prolonged super charged growth and the other possibly beginning one.

For the month overall, our portfolios fell between -2.7% to -2.9%, less than half stock market falls and still comfortably ahead of objectives, year to date. Our equity managers in general all managed to outperform a falling market, but perhaps the most notable performance came from the credit managers where our tilt towards shorter duration portfolios proved a resilient choice in a turbulent fixed income market. Given the widening in spreads, we will look to add gently to these managers over the summer as valuations become steadily more attractive.
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[skyship] 03/7/2013 15:42

So, Tilts was right of course. Here is the full text. I like the bit stating they will continue to pay the dividends:

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Proposed Return of Capital

At the EGM in September 2011, the Board made the following statement to shareholders:

"If during the first six months of 2013 the shares have persistently traded at an average discount of greater than 10% to its prevailing NAV per share, the Board will seek to return capital of up to 20% of the Company's Shares in issue as at 30 June 2013."

The average discount during the period was 10.9%.

Therefore the board is pleased to announce a return of capital to shareholders via an Enhanced Share Buy-back Program. Under the terms of this program, the Board commits to buy back up to 20% of the Shares in issue during the 12-month period to June 2014. In so doing, the board will target a single figure discount.

The repurchase of shares will be subject to the Company having sufficient liquidity at its disposal to continue to pay dividends and to enable it to maintain its currency hedging program, as well as receiving a renewed shareholder authority to buy back shares when the existing authority expires or is exhausted. For the avoidance of doubt the obligation to buy back shares is contingent on the discount remaining wider than the single figure target, though the Board reserves the right to acquire shares on a narrower discount should they see fit.
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[badtime] 03/7/2013 15:33

I see what u r saying tilts... 12 months buy back and if discount narrows from 10.9 to say 9.9 then they can stop? ...still as u say it does support the sp

[insipiens] 03/7/2013 15:14

I'd rather have a tender, of course

a tender what one may ask!

[tiltonboy] 03/7/2013 15:03

So, in effect they will support the share price at this price for the time being!

[badtime] 28/6/2013 20:37

Umm...nope i didnt sky (hold a fair few anyway) distracted by other events :)

[skyship] 28/6/2013 16:14

Nice - closing out H1'13 at 97p bid...

[skyship] 26/6/2013 18:29

BT - I do hope you took advantage of the cheap offer this past week. If not, do so tomorrow morning, early...

[skyship] 25/6/2013 16:03

Edison have updated their report on ACD. Starts as below:
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AcenciA Debt Strategies - Performance continues, discount persists:

AcenciA Debt Strategies (ACD), a closed-ended investment company, provides exposure to a focused range of predominantly debt-oriented strategies, particularly distressed debt, via a portfolio of carefully selected hedge funds. Performance continues to be positive in 2013 (+6.4% January to May), as it has in every year except 2008, with low volatility compared with equities (S&P 500) or high-yield US debt. Continuation of the fund beyond 2014 will require unanimous support from shareholders, which appears unlikely. A closing of the c 12% discount to NAV over the next 19 months would alone equate to a c 7.8% share price annual return, with dividends targeted to add a further 4% pa.

ACD invests in an actively managed portfolio of mainly debt-oriented hedge funds and targets annual returns in excess of three-month LIBOR plus 5% over a rolling three-year period, and annual standard deviation of under 5%. The annual management fee is 1% and the manager is entitled to a performance fee of 10% in excess of a 3% hurdle rate and subject to a high water mark (103.38p at 31 December 2013).

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The Report includes this important aspect:
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Limited life of the fund:

An EGM in September 2011 overwhelmingly supported the continuation of the fund but also approved a 'hard' continuation vote in late 2014, which will see the company wound up if any single shareholder votes for this. Moreover, shareholders voted in favour of a 20% return of capital in 2013 if the shares trade at a "persistent" discount of more than 10% in the six months to 30 June 2013. The EGM resolution stated:

In addition, if in the six month period to 30 June 2013, the company's Shares have persistently traded at an average discount of greater than 10 per cent. to its prevailing NAV per share, the board will seek to return capital in respect of up to 20% of the company's shares in issue (as at 30 June 2013) as soon as reasonably practicable. The precise method of this return of capital will be determined at the discretion of the board at the time, based on their assessment of the most effective means of managing the discount but subject always, inter alia, to applicable law, regulation and cash being readily available for such purpose.

[badtime] 21/6/2013 11:52

I take it u r over your allocation..I'm toying with a purchase

[skyship] 21/6/2013 11:05

Great opportunity to pick up cheap stock @ 96p today. Personally already more than fully allocated...

[badtime] 21/6/2013 09:58

There was me thinking u may be top slicing