 Thanks, I am indeed wondering if I simply have to take business elsewhere.
Dave's suggestion #370 is reasonable, but it would involve Fidelity agreeing to an exception to one (of the less attractive) features of their ISA proposition (no partial transfers). At a time when all platforms will be preparing their response to slightly vague provisions in the Autumn budget (which seem to forbid such policies), I think I'll be extremely lucky if I get cut any slack ahead of time.
On the core subject of the "Double Counting" issue, this post finishes with copy of a very clear note produced on 12 Jan by Investec, who seem to have been in the forefront organising the actual text, plus 300 signatories, of the Stock Exchange Joint Response.
I note AVI Global Trust apparently did not sign; they simply may have been amongst those "timed-out", as Investec puts it !
INVESTMENT COMPANIES 12 JANUARY 2024
"Strong industry support for a simple solution to address the regulatory asphyxiation of the investment company sector
"Investec view: An ill-fitting regulatory framework regarding cost disclosures has created significant headwinds for the closed end fund industry. Against the backdrop of a most challenging macro environment, this has exacerbated the recent sell-off, which has seen discounts fall to their widest levels since the global financial crisis. In addition, this has contributed to elevated and damaging discount volatility, which has led to some investors questioning their future involvement in the sector.
"In November, John Baron MP raised the issue of cost disclosures with the Chancellor of the Exchequer in the Treasury Select Committee and his response can be viewed here. In this letter, the Chancellor acknowledges that “it is clear that retained EU legislation (REUL) has had unintended negative consequences on investment companies, in particular the requirement to provide aggregated cost disclosure”. The Chancellor notes that as part of the Edinburgh Reforms, he committed to reform the prescriptive and misleading PRIIPs Regulation as a matter of priority, and the Government has published draft legislation that will enable the FCA to deliver new rules (including for cost disclosure) which are proportionate and tailored to UK markets.
"We support the steps being taken by HM Treasury to repeal PRIIPs and replace it with a new regime, and we welcome the Government’s stated intention to address concerns as to how current cost disclosure requirements impact upon the UK’s investment company sector through the new framework.
"As part of this process, HM Treasury in November issued a policy note on the new retail disclosure framework for Consumer Composite Investments (CCI) and invited technical comments on the associated draft statutory instrument.
"On Wednesday evening, the London Stock Exchange submitted a Joint Response to this policy note; we include the latest version of submission (see overleaf) which incorporates a number of additions made yesterday. This included over 300 signatories from across the industry, an incredible result given that signatures were only sought from interested parties over the space of a little over 48 hours. We are also aware of significant support from industry participants for whom the tight timescale was too high a hurdle to obtain compliance approval.
"The Joint Response goes into more detail, but the key recommendation is that investment companies be added to the “excluded products” category within the CCI statutory instrument. This would mean that investment companies are not required to comply with the current cost regime, which is misleading and has done so much damage to the closed-end industry. In our view, this recommendation appears a simple and effective solution.
"The Joint Response sends a powerful message, and we would like to take this opportunity to thank all those that have counter-signed the document, and also those that have expressed support but were timed out by the incredibly challenging timescale. One of the next stages will be an FCA consultation, and we would expect this to be launched shortly."
[Full Text of Stock Exchange Note and list of signatories then follows - again, please feel free to DM if that document is of interest] |
That's really bad - I would just leave Fidelity and join a new platform. Perhaps just take a small hit and sell AGT in Fidelity and then buy back on the new platform - will probably cost about 1% (stamp duty plus dealing spread) but at least it will be sorted and never deal with Fidelity again! |
You have my sympathies. Barclays, ii and AJ Bell,to my knowledge, see no problem with holding AGT. I'm surprised that Fidelity don't allow an 'in specie' intact share transfer. Might be worth pressing them on that. At least you have AVI on your side, quite rightly! |
Do any other investors here hold AGT on the Fidelity platform, and feel as utterly frustrated as I at the 'soft closure' which has applied there for the last six months? - ie Fidelity will maintain an existing holding, but block any new purchases!! Dave Bowler is clearly aware of the issue, but I wonder if there are others who care...
Let me state, before going into detail below, that I would simply like any other interested readers to DM me, so we can discuss further joint action, maybe starting a dedicated post on the subject.
I have discussed at some length with Fidelity (which still refuse to disclose their actual reasoning) and I also raised the issue at the AGT AGM in December: the Board confirmed that they have challenged Fidelity on this point but got no further than I.
It's pretty obvious that Fidelity acted out of concern on "Double Counted Fees" (the technical issue which is covered in the Citywire report posted #365 above), as their soft closure was announced within days of the new "consumer protection obligation" coming into force in July last year.
But at least four major objections remain:
1. no other major platform has taken this action (I stand to be corrected, but the AGT Board is of the same view);
2. as long as NO reason is given by Fidelity, consumers are actually confused, not 'protected';
3. Fidelity has allowed a dividend reinvestment to take place earlier this month, so they appear to be back-pedalling on their previously 'clear' (hem, hem) position.
and 4. if FCA is now meant to adopt an 'interim solution' ahead of actual legislation (as per the Citywire report above), it clearly DOES NOT itself consider the double-counting to be valid, and therefore Fidelity will have to be VERY careful if they invoke an interpretation of consumer interest contrary to that of the regulatory authority.
I have been substantively inconvenienced (Fidelity rules do not allow partial transfers-out from an ISA, so I cannot consolidate my AGT holdings there and elsewhere) as well as really irritated by their "patronising and high-handed behaviour".
If others feel the same, lets join forces to gain some moral retribution :) |
htTPs://www.trustintelligence.co.uk/articles/opinion-december-sees-sharp-rally-in-agt-and-ajot-jan-2024 |
hTTps://masterinvestor.co.uk/funds-and-investment-trusts/specialist-trust-recommendations-for-2024/ |
OCI also close to all time high. |
The share price is getting back to late 2021.
Hopefully we should soon be talking about momentum instead of seesawing. |
Dec report out |
Fairly quick run up from 210p - 220p, and with NAV now 248p there seems to be little to prevent the share price taking out the ATH when peeps get back to work. I will be reinvesting my dividend next week as the ATH here still represents good value v NAV in my view.
Anyone make the AGM?
Hopefully there’ll be a video, presentation or Q&A on the website at some point.
GLA. |
It is announced that the un--audited Net Asset Value per Ordinary share (inclusive of accumulated
income) of AVI Global Trust plc, an investment trust managed by Asset Value Investors Limited,
at the close of business on 13th December 2023 was as follows:
Net Asset Value -- Debt at par value: 232.82 pence
Net Asset Value -- Debt at fair value: 236.03 pence |
Indeed, unlikely to put the portfolio on fire, but every now and then it shoots up.
I also enjoy reading the ARs as they are genuinely actively managing their funds (AJOT being the other one).
We used to have special dividends, I miss those, always nice little surprises. |
SP 210p might take some clearing but then nothing to stop it challenging 221.38p ATH. Witchcraft I know but somehow history rhymes.
Happy holder. Their process repeatedly tells me I’m not clever enough to pick stocks and I’m happy to pay them to do so. |
It is announced that the un--audited Net Asset Value per Ordinary share (inclusive of accumulated
income) of AVI Global Trust plc, an investment trust managed by Asset Value Investors Limited,
at the close of business on 11th December 2023 was as follows:
Net Asset Value -- Debt at par value: 230.85 pence
Net Asset Value -- Debt at fair value: 233.88 pence |
November Management report...Markets were in ebullient spirts, with the largest monthly cross-asset rally since 2008. AGT's portfolio more than took part in this and was further boosted by several specific developments within the portfolio, with KKR and Schibsted the standout performers in this respect, contributing +160bps and +141bps apiece. We provide an update on bothinvestments below.Other strong performers include Princess Private Equity, Apollo, Wacom and Oakley Capital, which all added >50bps. Symphony International was the only meaningful detractor (-54bps) as the discount widened from 34% to 43% on typically thin volumes and a wide bid/offer spread.Over the month we realised £47m from Schibsted as the event angle of our investment thesis occurred, and gearing fell to 3.3%, having been 7.4% at the end of the financial year in September. We are excited about the flexibility this affords us in a world of wide discounts and rich opportunities, having started to build several new positions in recent weeks |
Quoted Data interview- |
I have noticed that the vocabulary in use is slowly degrading. Soon he will be calling people thieves and robbers. :) |
Go for it Joe! |
New monthly fund update |
"Joe Bauernfreund, CEO of AVI, commented: “After years of continued underperformance and a persistent valuation discount, we think that the current Board of Directors lack the necessary experience and independence to rectify the situation. Without meaningful strategic action, including the release of a more comprehensive medium-term plan and a review of the 20% stake in Kakaku.com, Digital Garage’s performance is unlikely to change. The inaction of the Board to address Digital Garage’s issues flies in the face of the efforts by the TSE, the Government and the FSA to enhance corporate governance and to pave way for an asset management-oriented country as manifested by Prime Minister Kishida.”
Another reading of the riot act.
AGT, AJOT and the other AVI funds altogether own 3% of the company, they can ask questions, but as usual the inertia of the other shareholders cannot be ignored. :( |
htTPs://citywire.com/investment-trust-insider/news/citywire-investment-trust-awards-2023-best-performers-and-best-board/a2429662?page=2 |
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