AJOT has been disappointing for a while now indeed.
So long for the "rotation in value" for this one.
Oh well, I have more money on AGT than AJOT, so I am not going to call for the head of Bauernfreund.
Ironically AJOT is at a (very) mild premium, it has been bobbing up and down but mostly above zero.
Very nice run by AGT with the NAV firmly above £10 a share now. |
Its certainly showing better returns than AJOT, I'm glad to say, but I do like the Japan small cash rich companies story that Bauernfreund promotes.On top of that its at a wider discount. |
That was half the top up not half the holding. |
Discount closing. Perhaps the results finally being recognised. Recently topped up at 885p which was difficult but 10%discount, selling half at 917p not my best idea. |
NAV at the close of business on 12th March 2021 was as follows:
Net Asset Value -- Debt at par value: 1,031.31 pence
Net Asset Value -- Debt at market value: 1,016.51 pence |
NAV at the close of business on 11th March 2021 was as follows:
Net Asset Value -- Debt at par value: 1,025.69 pence
Net Asset Value -- Debt at market value: 1,010.92 penc |
 Liberum update on OCI -one of our holdings-
Oakley Capital Investments
Additional liquidity from CPG refinancing
Mkt Cap £528m | Prem/(disc) -27.9% | Div yield 1.5%
Event
Career Partner Group, OCI's largest portfolio company at 14% of NAV, has completed a refinancing as a result of continued strong performance and cash generation. Career Partner Group achieved record student intake during the last 12 months and has been one of the key drivers of OCI's 18% NAV growth in 2020.
OCI's share of the proceeds via Fund III will be £28m and will result in liquid resources available for deployment of £197m.
Liberum view
Career Partner Group is the largest and fastest growing private university group in Germany. Oakley's initial investment in the business was in January 2018, and the number of students has risen from 13,600 to over 60,000 currently. The business offers significant scope for growth as the online education model market in Germany is not as mature as other countries in Europe or the US and we expect it will remain one of the main contributors to OCI's NAV growth over the medium term.
Following the transaction, OCI will have a cash balance of c.£197m (c.27% of NAV). This leaves the company well placed to capitalise on opportunities arising as a result of Covid-19 and we expect cash deployment to pick up over the next 12-18 months. Despite being the one of the best performing fund its its peer group over the last five years, generating a 17% CAGR, OCI continues to trade on the widest discount in the sector (ex-funds in realisation) at c.28%. We regard this as highly attractive given the manager's track record and the NAV growth potential of the fund. |
AGT really hit in last few days but not alone and even TEM is well down, Start to wonder if more downside to come ! |
Latest update - |
I notice it is quoted in $US on my level 2 with IG which seems odd although occasionally happens . I use a CFD to trade but how does that affect those who actually buy the shares with the broker ? |
I notice TPOU has a lovely uptrending chart and almost a NOR situation as quite a lot of these trusts are . But why is there no latest NAV shown on ADVFN rambutan as nice to check the % discount ? |
One I share with AGT is Third Point (TPOU), which has performed very well as the nav rises and the discount shrinks over the last year. |
thanks for info vacendak and interesting . |
I have just realised this is the AGT thread, not the AJOT thread, but most of us who yik-yak here know the two are related. |
Investment trusts are "closed" in the sense they have a finite number of shares. Subject to approval of the shareholders they can expand mostly in two ways:
* Big chunks or placings, usually waiving preemption rights from shareholders, i.e. selling to one or more institution who has agreed to buy at a slight premium. At times, this is done on the open market and shareholders are given the right to buy the new issue (at a potential discount) up to their current holdings for them to avoid dilution.
* On and off to the market over the year via a special authorisation, usually asked every year (and renewed), to issue shares. These, as agreed with the shareholders, must be sold at a premium up to a specified number. This authorisation is usually lumped with a right to do buy-backs, again at a minumum discount.
They can also raise funds via borrowing, up to the gearing limit that must be specified in the articles of incorporation.
AJOT has, from the beginning, suffered from its small size. It needs to expand to lower its costs. I am glad they managed the latest placement. |
I thought investment trusts were closed end and could not raise funds . I notice AJOT trades at about NAV and might find it hard to motor although a big move in last week in % terms |
N+1 Singer are delighted to have acted as Sponsor, Financial Adviser and Broker to AVI Japan Opportunity Trust plc ("AJOT") on their Placing raising £13.9 million.
AJOT is an investment trust established to provide investors with capital growth through investing a focussed portfolio of over-capitalised small-cap Japanese equities. The Company’s investment manager, Asset Value Investors, leverage its three decades of experience investing in asset-backed companies to engage with company management and help to unlock value in the under-researched area of the market.
The net proceeds of the Placing will be used to fund further investments in accordance with the Company's investment objective and policy.
Joe Bauernfreund, CEO and CIO of Asset Value Investors, commented:
“We want to take advantage of valuations which in many cases remain depressed despite encouraging signs of recovering earnings and heightened levels of corporate activity. In addition to investing in a number of new opportunities, the proceeds will be used to increase the size of the shareholdings in several companies where the manager is planning on submitting shareholder proposals at the AGM later this year. The increased stakes will improve the likelihood of a successful outcome.” |
oh, I do hold some PSH but do it through a spreadbet as IG will not allow it with a CFD . It too is close to NOR territory again after the little run up . |
vacebdak,
thanks for the info and much appreciated . The chart certainly does not suggest it should be sold yet as almost a NOR situation but I tend to trade using a CFD and never like to hold for more than a few days - maybe not best strategy in bull markets !
This stock is quite illiquid and low volume for some reason. thanks again . |
NAV 11th February 2021 was as follows:
Net Asset Value -- Debt at par value: 1,030.18 pence
Net Asset Value -- Debt at market value: 1,011.53 pence |
You are not wrong, but the discount is "organic", due to the nature of the trust, it goes down a bit every now and then when the through-discount reduces, i.e. when people pick up on heavily discounted stocks held by AGT.
Historically, the last time AGT hit a small premium was 2005 if memory serves, it was called BTEM (British Empire) back then.
It invests in anything, single shares, funds, family trusts, etc. that is investable and at a discount for no reason, i.e. they identify pricing anomalies. PSH is the best example at the moment. |
slow moving but hoping it will spike soon as such a big discount to NAV maybe because it does not seem to invest in companies but in other investment type trusts - maybe I am wrong ! |
I am with Baillie Gifford in China (BGCG) and US-tech (USA).
BGCG because it used to be Witan Pacific and USA because I like candy; but I agree, I am braced for a kick in the teeth at some point. |
I feel a lot more comfortable holding this than the 'techno bubble' Baillie Gifford investment trusts at this point in the cycle! |
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