For those interested - |
www.ajot.co.uk/content/uploads/2021/09/AJOT-AUG-2021.pdf |
Net Asset Value -- Debt at market value: 1,088.22 pence |
Eye popping bargains in AJOT (But I hold AGT as a proxy) www.ajot.co.uk/content/uploads/2021/09/AJOT-AUG-2021.pdf
[...] |
Indeed, last year or so, I went through the actual top holdings of AJOT and AGT's "Japanese basket" and found that all but two or three were the same.
No shame in that, same manager, likely same team of Japan experts.
Thus, with a high correlation, the "basket" should pull AGT up too. |
I see that AJOT has taken off (at last) and is trading very close to NAV -
AVI JAPAN OPPORTUNITY TRUST PLC
It is announced that the un--audited Net Asset Value per Ordinary share (inclusive of accumulated
income) of AVI Japan Opportunity Trust plc, an investment trust managed by Asset Value Investors
Limited, at the close of business on 13 September 2021 was as follows: Net Asset Value: 123.88 pence
Hopefully we should get a knock on effect! |
Buy backs/treasury shares lower the amount of shares on the market (theoretically pushing the price up), they are not entitled to earnings or dividend, so the EPS and yield go up, indirectly enticing people/algos to buy them.
The amount does not really matter, it is always positive when the discount is beyond a given threshold, most IT companies ask for the authorisation to buy back when the discount goes beyond 10% (depending on the type of course, EM and PE tend to have larker discounts and do not bother much with it).
AVI and Bauernfreund have been very vocal of late, they show up for interviews in many publications/websites pretty regularly, selling AJOT mostly. So people should be aware of them. One can lead a horse to water... |
I just wonder what is the thinking within the Empire team, a long standing policy but such small purchases don't seem to narrow the discount or would it be even wider otherwise. Could not the cash be put to better use, like paying a more attractive yield or by investing in the pursuit of capital growth? And indeed why not cancel the shares if the chance of a sustained premium opportunity is so remote, or is that becoming a real prospect again if we hang on for long enough?
Not really complaining at the management team who seem to have got things pretty well positioned, just frustrated that we can see the embedded value and it does get featured by commentators so why is AGT not in higher demand. |
Perhaps a good way to narrow that discount would be to cancel shares held in Treasury. There may be a few of us that like accumulating at the discount who would reduce holdings if it got sub 4/5%. I’ll go first….probably guilty, though I do value the discount on discount and manager’s process so I’d always have a large holding here. |
The last time AGT/BTEM traded at a premium was in 2005 or thereaouts according to an interview with Joe Bauernfreund I vaguely remember.
It had him saying that at the time the assets were still at a small discount. It must have been hard to do "value" back then I suppose.
So, it can happen, whether it will any time soon, and then for long enough to offload the humungous overhang, remains of course an open question.
The summer before the plague, FCIT (Foreign & Colonial) traded at a small premium on and off for a couple of weeks. They managed to release a - very - small amount of treasury shares. If it can happen to a generic/global whale like FCIT, anything is possible. |
I notice AGT has been slowly buying a few of its shares into Treasury, now quite an accumulation around 12.5 million so around 10% of NAV. The discount never seems to close though, so what is the end game? Unlikely to see a chance to issue them back out at a premium, so ... just an exercise to concentrate value in the circulating stock?
Nice to see £10 again, and NAV progressing after a dull patch. Presumably still massive discounted value in the underlying holdings. |
£10.00 at close, now this is a nice round number. |
Corporate governance discussed but Jupiter fund manager's view of Japan is that its a coiled spring. |
The monthly news letter for July is out. |
13th August 2021
Net Asset Value -- Debt at par value: 1,088.15 pence
Net Asset Value -- Debt at market value: 1,071.64 pence |
I know, pretty long URL but it should show a pretty good week for Symphony (SIHL) |
That is weird indeed, I always read the update from the PDF found on the AVI website and as BiggestBill mentioned, everything is logical on that version. |
Thanks.
The LSE RNS Number : 1784G AVI Global Trust PLC 22 July 2021 has Japan Special Sits in both columns, which is what I was reading.
Jump to the bottom of |
Emptyglass, are you sure that you are looking at the right update? Japan Special Situations only appears in the largest contributors column. |
Why is the Japan Special Situations in both Largest Contributors and Largest Detractors in the monthly update ?
.
Asking for a friend. I ventured it could happen if you split the constituents. |
Still no update on Symphony and the latest PSH/Tontine/UMG story is too recent to have made it to the June newsletter. |
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