REG - AVI Global Trust PLC - Half-year Report
09/06/2022 07:00
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RNS Number : 2097O AVI Global Trust PLC 09 June 2022
AVI GLOBAL TRUST PLC
('AGT' or the 'Company')
LEI: 213800QUODCLWWRVI968
Announcement of unaudited results for the half-year ended 31 March 2022
OBJECTIVE
The investment objective of the Company is to achieve capital growth through a
focused portfolio of investments, particularly in companies whose shares stand
at a discount to estimated underlying net asset value.
FINANCIAL HIGHLIGHTS
- Net asset value ('NAV') total return per share increased by +1.3%
- Share price total return -1.2%
- Benchmark index decreased on a total return basis by -1.4%
- Interim dividend maintained at 1.2p
PERFORMANCE SUMMARY
Net asset value per share (total return) for six months to 31 March 2022(1)* +1.3%
Share price total return for six months to 31 March 2022* -1.2%
31 March 2022 31 March 2021
Discount*
(difference between share price and net asset value)(2) 9.1% 7.7%
Six months to Six months to
31 March 2022 31 March 2021
Earnings and Dividends
Investment income £9.25m £6.17m
Revenue earnings per share 1.25p 0.66p(±)
Capital earnings per share (0.18p) 41.44p(±)
Total earnings per share 1.07p 42.10p(±)
Ordinary dividends per share 1.20p 1.20p(±)
Expense Ratio (annualised)*
Management, marketing and other expenses 0.87% 0.84%
(as a percentage of average shareholders' funds)
Period Highs/Lows High Low
Net asset value per share 242.71p(±) 197.28p(±)
Net asset value per share (debt at fair value) 239.44p(±) 195.11p(±)
Share price (mid market) 222.00p(±) 172.00p(±)
(±) Restated for Share Split.
(1) As per guidelines issued by the Association of Investment Companies
('AIC'), performance is calculated using net asset values per share inclusive
of accrued income and debt marked to fair value.
(2) As per guidelines issued by the AIC, the discount is calculated using the
net asset value per share inclusive of accrued income and with the debt marked
to fair value.
Buybacks
During the period, the Company purchased 606,929 Ordinary Shares of 10p each
and 3,653,930 shares of 2p each (following the Share Split on 17 January
2022). All 10p shares bought back were placed into treasury. Of the 2p shares
bought back following the Share Split, 854,690 were placed into treasury and
2,799,240 have been cancelled.
*Alternative Performance Measures
For all Alternative Performance Measures included in this Report, please see
definitions in the Glossary below.
The Share Split which was approved by shareholders at the 2021 Annual General
Meeting took effect on 17 January 2022, and where relevant the numbers quoted
in this report take account of the fact that each existing share was replaced
by five new shares.
CHAIRMAN'S STATEMENT
Overview of the Half Year
News in the half year under review was dominated by Russia's invasion of
Ukraine. The Board and of all of those involved with AVI Global Trust are
deeply troubled by these events and we hope for a swift and peaceful
resolution to avoid further casualties.
Analysis undertaken by the Investment Manager has identified no direct
exposure to Russia or to Ukraine. Nonetheless, AGT's portfolio companies
operate in a globally-linked economy, and there is potential for the portfolio
to be impacted by inflationary and exchange rate pressures brought about by
the conflict. The economic effects of the invasion have already been felt in
the dramatic rise in the cost of energy and of some basic foodstuffs and there
is natural concern that this will lead to ongoing levels of inflation not
experienced in the developed world for many years. Broadly based equity market
indices fell on the news that war had broken out in Ukraine in late February
2022 but had recovered by late March 2022. To echo the words of our Investment
Manager, markets were sanguine in late March 2022, perhaps remarkably so in
light of the geo-political and economic challenges that the world is facing
and indeed markets became more volatile and fell in value subsequent to the
half-year end.
Over the six months under review, the Company's NAV Total Return was +1.3%,
outperforming the benchmark index which returned a decline of -1.4%. Since 31
March 2022, global markets have become increasingly volatile, with the
Company's NAV returning -3.5%, outperforming the MSCI All Countries World
Index which returned -5.1%, but underperforming the AC World Index ex-US which
returned -3.4% (as at 27 May 2022).
Income and Dividend
Our net revenue for the six months under review was 1.25 pence per share.
Shareholders should note that the majority of our revenues are typically
earned in the second half of each accounting year. The Board has decided to
maintain the interim dividend at 1.2 pence per share, the same level as last
year. The Board's current intention remains to at least maintain the dividend
at current levels.
Gearing
The Company has a mix of fixed, long term and short term debt which is all
available for drawdown at short notice. As set out in their report, the
Investment Manager has in recent months taken a cautious approach to gearing
and post period end the revolving credit facility was repaid resulting in the
company being positioned with no short term debt and almost £150m of
liquidity available for investment.
As I have said in previous statements, any increase or decrease in cash and
gearing levels is driven primarily by the Investment Manager's view of
investment opportunities, and having appropriate available liquidity, and not
by views on the future direction of markets. The level of liquidity available
provides the Investment Manager with flexibility to pursue investment
opportunities as they arise.
Share Price Rating and Marketing
At the end of March 2022, the shares were trading at a discount of 9.1%, which
was somewhat wider than the 6.7% at the 30(th) September 2021 year end. We use
share buybacks when the Board believes that these are in the best interests of
shareholders and with the intention of limiting any volatility in the
discount. During the six months under review, some 6.7 million(1) shares were
bought back, representing 1.2% of the shares in issue as at the start of the
period under review.
As in previous years we intervened when the Board believed that the discount
was unnaturally wide and intend to continue to follow this approach, which is
also an approach that our Investment Manager encourages for many of our
investee companies. As well as benefitting shareholders by limiting the
discount at which they could sell shares if they so wish, buying back shares
at a discount also produced a small uplift in value to the benefit of
continuing shareholders, by approximately 0.1%.
Management Arrangements
I noted in my last Annual Report that for much of the preceding 12 months our
Investment Manager and other key service providers continued to operate parts
of their business with staff working from home. I am pleased to report that
offices are now generally open for business as usual but contingency plans
remain in place, should the effects of the COVID-19 pandemic require further
restrictions in the future.
Directors
As previously reported, Nigel Rich retired at the Annual General Meeting in
December 2021. I would like again to record the thanks of his fellow Directors
and of the Investment Manager for Nigel's invaluable insights and guidance
over the last nine years.
Following Nigel's retirement Calum Thomson took over the role of Senior
Independent Director.
As previously announced, I will retire from the Board at the AGM in December
2022. My fellow Directors have started the process to recruit a new
non-executive director and to identify a replacement chairman.
Annual General Meeting
The Board was pleased to welcome shareholders back to a "live" AGM on 16
December 2021 after having been obliged to hold the previous year's event
behind closed doors. All resolutions were passed by a large majority and the
Board appreciates shareholders' engagement and support.
While most of the resolutions at the AGM were routine in nature, shareholders
approved a Share Split, under which each existing share was sub divided into 5
shares. This took effect on 17 January 2022.
The Board recognises that not all shareholders are able to meet us at AGMs and
if you have any questions or comments about any matter relevant to the
Company, please write to us either via email at
aviglobal_cosec@linkgroup.co.uk or by post to The Company Secretary, AVI
Global Trust PLC, Beaufort House, 51 New North Road, Exeter, Devon, EX4 4EP.
Outlook
The world has been unpredictable in the last few years, with the economic
shock of the pandemic two years ago now being joined by war in Europe. Our
thoughts are first and foremost with the victims of war but as investors we
also look to the broader economic consequences of events. The major issue
looking forward is energy and food price inflation adding to supply chain
issues resulting from the pandemic. The concern is whether this will lead to
people seeking to counter higher living costs with higher wage demands, which
can then lead to an inflationary spiral, potentially impacting companies'
earnings.
Against this background, AVI's focus on owning high quality investments with
the possibility of benefitting from tangible but unrealised value has proven
effective in protecting shareholders from the worst excesses of market
volatility. Our Investment Manager reports a number of attractive
opportunities and, as they have been cautious with deployment of debt, we have
a substantial amount of available cash to deploy. While these are undoubtedly
difficult times, your Board believes that AVI's approach will continue to
generate attractive returns over the long term.
Susan Noble
Chairman
8 June 2022
1 The Share Split which was approved by shareholders at the 2021 Annual
General Meeting took effect on 17 January 2022 and, where appropriate, the
numbers quoted in this report take account of the fact that each existing
share was replaced by five new shares.
INVESTMENT MANAGER'S REPORT
PERFORMANCE REVIEW
Over the past six months the world has become a far more worrying place. First
and foremost, the human cost of the invasion by Russia of Ukraine is at the
forefront of our minds and a source of much sadness and fear. On the economic
front, the war in Ukraine has compounded the inflationary trends that have
been apparent for some time now and put paid to any notion that the high
inflation experienced in the post-COVID era would be transitory. Monetary
policy in many developed countries is clearly behind the curve, and central
banks will have their work cut out for them taming the inflationary beast with
higher interest rates without tipping economies into recession.
If this is the economic and geopolitical backdrop, it is somewhat surprising
that global equity markets were relatively sanguine in March 2022 before
becoming more volatile. Over the past six months, the MSCI AC World ex US
(your Company's comparator benchmark) and the MSCI AC World have delivered
returns of -1.4% and +3.4% respectively, whilst your Company has returned
+1.3% - an outperformance of +2.7% over the benchmark.
The relatively benign equity market performance, however, masks heightened
volatility across many risk assets. The yield on the 10-year US Treasury, a
key indicator of US interest rates, has increased to 2.3% from 1.5% at the end
of September 2021; the price of Brent Crude Oil is above $100 a barrel, having
been below $80 at the end of September 2021. And in the currency markets, the
divergence of monetary policy between the US and Japanese central banks has
put downward pressure on the Yen, which fell by 8% over the period, leaving it
arguably extremely under-valued. Within equity markets there has been a
noteworthy fall in the value of the "Unprofitable Tech Index"(1) of -35% over
the period.
With the Federal Reserve and the Bank of England firmly in monetary tightening
mode, and the European Central Bank apparently intent on following later in
the year, equities will face increasing headwinds.
As we have described on many occasions in the past, we are bottom-up stock
pickers. We build portfolios based on our assessment of fundamental valuation
and pay no regard to the constituents of any market index. As long-term
investors we see little merit in trying to time markets over the short-term
and thus our portfolio will typically be 100% invested much of the time.
Having said that, as an investment trust, we do have the ability to use
gearing, and over the past few years AVI Global Trust has taken out a mix of
long term and short term debt at relatively low interest rates. Towards the
end of 2021 we began reducing the gearing that we were employing to the point
that we were not using any of our available debt by the end of February 2022.
This was in response to what we perceived to be excessive valuations in parts
of our potential investment universe, reflected often in narrow discounts and,
on occasion, premia to NAV.
We believe that in the current market environment it makes sense to have some
fire-power in reserve and at present we have almost £150m of available credit
facilities to deploy. In terms of the current portfolio, as markets became
more expensive and as we took profits in some names, the portfolio has become
more concentrated as we focused on those companies that we believed to be most
attractively valued. Names which we added to or initiated a position in over
the period include Eurazeo, IAC, Aker, Pershing Square Holdings, Universal
Music Group, and Wacom, whilst those which we sold out of or reduced include
Investor AB, VNV Global, Associated British Foods, Pasona Group, Keisei
Electric Railway, and Hipgnosis Songs Fund (to fund the purchase of UMG).
Contributors and Detractors for the six months ending 31 March 2022
Contributors Contribution(±)
Pershing Square Holdings +0.99%
Oakley Capital Investments +0.96%
Aker ASA +0.95%
SC Fondul Proprietatea +0.82%
Wacom +0.62%
Detractors
IAC/InterActiveCorp -1.01%
Third Point Investors -0.83%
Godrej Industries -0.67%
EXOR -0.47%
Pasona -0.42%
The weighted average discount on the portfolio(2) has tightened over the
period from 30% to 28%. Over the first quarter of 2022, AGT's potential
investment universe experienced a general discount widening from the market
peak in November 2021, driven by inflationary concerns and geopolitical
tensions, before snapping back to more normal levels in the last few weeks of
March 2022. As is typically the case when markets experience bouts of
increased volatility, the widening discounts at the start of 2022 acted as a
short-term headwind to our performance. While discounts still remain far
narrower than the extreme levels seen in March 2020 (46% weighted average
discount on AGT), the potential for prolonged periods of wide discounts, in
light of ongoing global political and economic instability, may present an
opportunity to improve the quality of our portfolio and the prospects for long
term returns.
Since 31 March 2022, global markets have become increasingly volatile, with
the MSCI World Index having fallen -5.1%(3). Inflation and central banks'
attempts to quell it remain the issue of the day. Rising bond yields and the
re-pricing of risk has led to significant corrections in more Icarian parts of
the market. Whilst the impact at the equity index level had remained
relatively muted, it is starting to become more meaningful. Volatility and
uncertainty remain high. In such a risk-off environment discounts tend to
widen, and this is what we have witnessed, with the portfolio weighted average
discount widening to 30.2%(3).
We believe that this portfolio is a collection of good quality businesses
trading at attractive valuations and sporting generally sound balance sheets,
and are optimistic for their long term prospects despite the presence of an
unusually elevated number of macroeconomic challenges that may present
headwinds over the short term.
In the following section we discuss a number of contributors and detractors to
performance over the period.
(1) Goldman Sachs index of unprofitable technology.
(2) Refer to definition of Portfolio weighted average discount in the glossary
below.
(3 ) As at 27 May 2022.
† Contribution is the percentage amount that a position has added to the
Company's net asset value over the six-month period.
CONTRIBUTORS/DETRACTORS
Pershing Square Holdings
(NAV: +11% / Price: +10% / Discount: -30% / Contribution: +0.99%)
Pershing Square Holdings (PSH) was our largest contributor over the period.
Exceptionally strong NAV growth in the last few weeks of the period resulted
in solid outperformance of the S&P 500 Index, buoyed by a sharp rally in
Universal Music Group (UMG) and other portfolio holdings that had been hit
hard up to that point in the market sell-off of 2022.
PSH's NAV appreciated by +11% in its traded currency of US dollars, with a
slight widening of the discount dampening share price returns to +10%. Dollar
strength vs Sterling improved returns experienced by AGT shareholders to
+12.7%.
It is noteworthy that, excluding the tiny option-like positions in the
preferred securities of Fannie Mae and Freddie Mac, only two of PSH's
portfolio companies (Hilton Worldwide and Howard Hughes Corp) themselves
outperformed the S&P 500 over the time period in question. And that two
material holdings, Domino's Pizza and Chipotle Mexican Grill, suffered double
digit share price declines. So how did PSH's overall NAV growth manage to
outperform the S&P 500?
The answer is found in a derivatives position established by the Manager in
late 2020 to protect against the negative impact on equity markets of rising
interest rates. Predicated on a view that fiscal stimulus combined with
pent-up demand in the aftermath of COVID lockdowns would likely lead to an
increase in inflation, the manager built a large notional position in interest
rate call options ("swaptions") that would increase in value as market
expectations of rate rises to combat inflation increased. This paid off
handsomely as the two-year US Treasury Yield (to which the swaptions are
predominantly linked) rose from 0.28% to 2.33% over the six-month period
covered by this report. We estimate that the swaptions position has added in
excess of +15% to PSH's NAV since it was established. As with the successful
hedge (via credit default swaps) put on in early 2020 ahead of the
COVID-induced market sell-off, this latest position was highly asymmetric at
its inception with downside limited to the relatively small amount paid as
call option premium.
We remain excited by the prospects for PSH's portfolio companies, in
particular its largest holding UMG, which we estimate represents 27% of PSH's
NAV. Our prior research on UMG when it was owned by Vivendi, and on Sony Music
given our large position in Sony Group Corp, led us to appreciate the secular
growth attractions of the music industry and the advantaged positioning of
content owners in the value chain. Streaming has transformed the industry in
terms of both growth and quality of earnings, and our bullish outlook led us
to establish positions in Hipgnosis Songs Fund and Round Hill Music Royalty
Fund (the latter later being sold to fund an increased holding in the former).
Over the period, in part funded by sales of Hipgnosis Songs Fund, we initiated
a direct position in UMG which - unlike the former - should benefit
substantially from operating leverage as its top line grows. We see a long
growth runway ahead as streaming subscription services penetrate further into
emerging markets, subscription prices rise
in developed markets, as music becomes increasingly monetised on social media,
and in gaming with the profits from such inuring disproportionately over time
to UMG and other content owners.
PSH's discount remains anomalously wide (30% at the reporting period end) for
a company with such a strong performance track record and deft employment of
hedges over the past three and five years. PSH remains AGT's largest position.
Oakley Capital Investments
(NAV: +20% / Price: +19% / Discount: -21% / Contribution: +0.96%)
Oakley Capital Investments (OCI) was the second largest contributor to returns
for the period generating a NAV total return of +20% which, while the discount
widened to -21% from -20%, resulted in a share price total return of +19%.
The majority of this strong performance comes as a result of Oakley's stellar
full-year results which were announced on the 26th January 2022. The company
reported a strong NAV growth of +35% for 2021, vs. +9% for the MSCI ACWI ex
US. Positively, the majority of the returns came from EBITDA growth within the
portfolio (76% of returns) as LTM EBITDA* grew at an average 28% across the
portfolio, with some support from multiple expansion and uplifts on disposals
of assets (24% of returns).
The crown jewel of the portfolio, IU Group (a German private university),
performed particularly well and drove a significant uplift to Oakley's NAV
(+52p to NAV per share) in 2021. What started out as a German-only online
university now has line of sight to become Europe's largest university. The
group initially had 18k students when it was acquired in 2015, that number now
stands at 80k. Currently being carried at a gross multiple on money invested
of 9.3x, if OCI were to dispose of their stake in IU, it would make Fund III
the best performing mid-market fund, earning a gross money multiple of c. 4x.
With IU Group now actively marketed outside of Germany, the trajectory for
future growth makes it a very exciting asset. Elsewhere in the portfolio there
were strong performances by Grupo Primavera (business software), Contabo
(Cloud severs), Facile (price comparison website), and Wishcard (gift cards).
The portfolio now boasts having over 75% of its revenues from recurring
sources and over 70% of its holdings delivering services digitally.
2021 was a busy year for OCI, with six new investments including Idealista
(online real estate classified advertisements), Dexters (London real estate
agent), ICP Education (UK nurseries network), ECOMMERCE ONE (German e-commerce
solutions), ACE Education (higher education) and Seedtag (digital
advertising). Notably, the
company also exited Tech Insights in February 2022 at a 131% premium to its
carrying value and a 19x gross multiple of money invested, generating a +24p
uplift to Oakley's NAV.
We continue to believe that Oakley's strategy is a winning one, focusing on
business sectors/themes that it knows well with strong growth prospects, deals
sourced by a network of Oakley-friendly entrepreneurs, and a determination to
execute complex transactions. The result of this strategy, particularly the
latter two aspects, is that
75% of deals are uncontested, which is unusual in the private equity world.
Despite these unique merits, OCI continues to trade on a 22% discount - one of
the widest of its peers, and notwithstanding its stellar track record as one
of the top-performing listed private equity funds in London.
With OCI, we are being offered a high-quality, fast-growing portfolio, that is
backed by a manager with a distinct deal sourcing strategy. This distinctive
strategy, alongside a Board that is making significant efforts to improve
governance, and at a discount of 22%, makes OCI an exciting holding.
Aker ASA
(NAV: +6% / Price: +19% / Discount: -19% / Contribution: +0.95%)
Aker was a material contributor to performance during the period, as the
shares returned +19%. This was split roughly one third from NAV growth (+6%)
and a narrowing of the discount from 28% to 19%.
The largest component of Aker's NAV is Aker BP. Shares in Aker BP returned
+19% during a period in which Aker BP agreed to merge with Lundin Energy,
creating a leading low-cost-low-emission oil and gas company.
We wrote in last year's Annual Report that oil and gas companies would likely
fair well going forward in a world starved of oil and gas capex and production
growth. We believe that this continues to be true with a structural imbalance
between demand for, and supply of, hydrocarbons. Russia's invasion of Ukraine
has accentuated this in the most distressing of circumstances. In this
environment oil prices have been volatile, moving from $78 to a high of $128,
and then down to $104 following the release of the United States Strategic
Petroleum Reserves at the end of March, as well as concerns about the outlook
for global growth following the (momentary) inversion of the yield curve. As
at 27th May, oil prices have continued to demonstrate excessive volatility,
currently standing at $116. We expect the combined Aker BP-Lundin entity to
create significant shareholder value over the coming decade, with
low-cost-low-emission producers playing an important, elongated and
underappreciated role in the energy transition.
We do however concede, and indeed celebrate, the fact the transition is a
one-way street. In this vein we are excited about the long-term prospects for
value creation by Aker Horizons, the renewable energy holding company which
Aker established in 2020. Investor sentiment toward the sector has swung from
euphoria to pessimism in recent months, and Aker Horizons' share price
declined by 32% during the period, detracting from Aker's NAV. Aker has a
history of going against the grain and investing through the down-cycle to
create value in the long run. We believe that they will adopt a similar
strategy, and that their industrial know-how and partnership model stands them
in good stead to create value in the years ahead.
We increased the position by just under 20% over the interim period and now
own 60% more shares than we did a year ago. Having first invested in Aker in
2008, AGT has earned an IRR of +19% over the holding period. We remain excited
about prospective returns.
Fondul Proprietatea
(NAV: +17% / Price: +20% / Discount: -4% / Contribution: +0.82%)
Fondul Proprietatea (FP) was our fourth largest contributor for the period,
continuing its impressive run over the last several years. Held by AGT since
late-2014, FP is a Bucharest- and London-listed closed-ended fund originally
set up to provide restitution to Romanian citizens whose property was seized
by the former Communist government. Today, FP provides exposure to some of
Romania's most attractive utility and infrastructure assets and has a policy
of distributing all excess cash and realisation proceeds to shareholders via
dividends and buybacks.
The current portfolio is heavily concentrated in a few assets as a result of
the aforementioned policy, with the crown jewel being the 20% stake in
unlisted hydropower producer, Hidroelectrica, that accounts for over
two-thirds of FP's NAV.
FP's discount tightened materially over the six-month period, moving in from
20% in October 2021 to 4% at the end of March 2022 on the back of excitement
around the IPO prospects for FP's stake in Hidroelectrica. FP's NAV was up by
+17%, resulting in a total share price return of +20%.
Hidroelectrica is a unique asset and will be the only listed pure-play
hydroelectric power company in the world. With it firmly ticking both the ESG
and dividend yield boxes, there is reportedly a long queue of pension funds
and other institutions keen to buy shares in the listing which is expected to
occur in the fourth quarter of 2022. The valuation multiples on which closest
peer Verbund trades suggest there may be scope for material upside, even after
the application of a sizeable country discount to reflect Hidroelectrica's
more uncertain regulatory backdrop, but the current insistence of the Romanian
government on the IPO being a Bucharest-only listing presents a problem given
the very large size of the listing relative to the Bucharest market, and there
is lobbying work ahead for FP's manager if they are to achieve their goal of a
dual listing in London.
Wacom
(NAV: -8% / Price: +34% / Discount: -18% / Contribution: +0.62%)
Wacom was the fifth largest contributor during the period, reflecting its
steady operations even after the lifting of social restrictions. Wacom is the
world's largest display-tablet manufacturer with approximately 60% market
share across the globe. The company returned +34.2% in the period vs. TOPIX
which returned -1.8%. Management have guided for a stellar set of FY2022
results, expecting JPY 12.5bn in operating profit, a +125% increase compared
to its pre-COVID performance. Wacom's top-line has been growing at a 7.6%
compound annual growth rate since 2017.
In the commerce segment (B2B) , Samsung, one of Wacom's largest clients,
announced in February 2022 that it will be launching the Galaxy S22 Ultra with
Wacom's S-Pen fully integrated into the product. The company also announced
its intention to expand the S-Pen integration across its models from S-Series
to Z-Series. We believe that this is going to be a major growth driver for
Wacom's business from 2022 in the Technology Solution segment.
Moving to the consumer business, Wacom has achieved an annual growth rate of
18.7% in the Display Tablet segment and 9.4% in the Pen Tablet segment vs.
pre-COVID levels. We believe that the growth of these businesses has not only
been driven by the past two years of remote working, but also because of the
new business domains, such as the educational segment, and the expansion of
the business into more product line-ups e.g., Wacom One, which are marketed to
entry-level designers.
The company has also continued to buyback its shares, completing JPY 3 billion
(equivalent to c. 2.0% to the current market cap), with JPY 7 billion
committed to further buybacks in its mid-term plan period to 2025.
Through our private engagement with the company, both the internal and
external directors have shown a proactive attitude to enhance their ESG
efforts. At present, the company has not provided a sustainability report to
the public, and we feel that publishing this in its Integrated Report could be
a significant driver in attracting new investors' attention to Wacom.
Even with the company's healthy share price performance, it is still at a
discount of 18% compared to its broader peer set (10.7x vs. 13.0x Fwd
EV/EBIT*). We remain excited by the prospect of Wacom's strong future
operating performance, and hope to continue building our relationship with
management.
IAC/InterActiveCorp
(NAV: -15% / Price: -23% / Discount: -33% / Contribution: -1.01%)
IAC - the north American internet-focussed holding company controlled by Barry
Diller - was the most significant detractor from your Company's performance
during the interim period. The shares declined by -23%, as a -15% decline in
the NAV was compounded by a widening of the discount from 25% to 33%. In
reaction to this share price weakness, we increased the position by more than
50%.
IAC specialises in building businesses that are trying to transition sectors
from offline to online, such as Expedia for travel, and Match for dating. Such
businesses are typically capital light, exhibit network effects and enjoy
strong structural growth trends. IAC, who describe themselves as the
"anti-conglomerate conglomerate", have a track record of spinning these off to
shareholders when they reach maturity, having spawned 10 public companies.
Having spun-off Match and Vimeo in 2020 and 2021, today IAC is back in
building mode with a portfolio as follows: 1) Dotdash Meredith, a digital
media company formed in 2021 when IAC's Dotdash acquired the illustrious media
assets of Meredith Corp; 2) a listed stake in Angi, the leading home services
market place; 3) a listed stake in MGM Resorts International, whose BetMGM is
a leader in the nascent US sports betting and online gaming market; and 4) a
collection of smaller unlisted assets, the most promising of which are
Care.com, a marketplace trying to bring the $300bn care market online, and a
minority stake in Turo, a peer-to-peer car rental marketplace.
Investors tend to get excited about IAC when they are about to spin-off an
asset, and grow despondent during the lulls when there are no "obvious"
catalysts on the horizon. This is reflected in discount widening.
On top of this IAC's NAV has suffered from a sharp decline in Angi, shares in
which declined by -54% during the period, as the correction in US internet /
tech multiples combined with weaker than expected results to create the
perfect storm. Investors are highly sceptical as to whether (relatively) new
CEO Oisin Hanrahan can successfully execute on the fixed price strategy and
reinvigorate growth. We admit that the jury is still very much out, but note
that IAC management - arguably one of the most experienced builders of
internet businesses - are seeing enough traction in the KPIs to keep investing
in the strategy, and there is significant downside protection in the form of
the "real option" available to them of restoring profitability at the expense
of growth spend if they so chose. We believe the risk-reward from here to be
highly attractive.
Turning to the discount, from the time of the Vimeo spin-off in May 2021,
IAC's discount has widened from 8% to 33% - a 26% headwind. Given IAC's
history of spinning off assets to shareholders, which acts as a pull to par,
we believe that the fair discount is close to zero. We are optimistic about
prospective returns from discount narrowing, as well as NAV growth, with, on
our estimates, a dollar invested in Silver King (the precursor to IAC) when
Barry Diller took control in 1995 having grown to $33 today, compared to $14
for the S&P 500 over the same period.
Third Point Investors
(NAV: -16% / Price: -15% / Discount: -12% / Contribution: -0.83%)
Having been our largest contributor over the previous financial year (to 30
September 2021), Third Point Investors Ltd (TPOU) suffered a reversal and was
our second-largest detractor for the half-year period covered by this report.
While we benefitted from a narrowing discount (in from 14% to 12%), TPOU's NAV
fell by -16% (in US dollars) as two previously high-flying positions (Upstart
Holdings and SentinelOne) faltered in the "growth stock" sell-off that began
in the fourth quarter of 2021.
AI-lending platform Upstart's share price declined by -66% over the period
while SentinelOne fell by -28%. While a large portion of the shareholding in
Upstart was sold over the period, it was not enough to prevent it detracting
-10% from TPOU's NAV. Aggregated with SentinelOne, the two positions accounted
for over two-thirds of the fall in TPOU's NAV.
Readers will likely be aware of our public activist campaign that began in
mid-2021. This came to an end with the appointment of an independent director
we had proposed to the Board:
https://www.investegate.co.uk/third-point-investors-ltd--tpou-/prn/board-and-shareholderupdate/20220218123552PDE52/
(https://www.investegate.co.uk/third-point-investors-ltd--tpou-/prn/board-and-shareholderupdate/20220218123552PDE52/)
. After the end of the period, AGT participated in the exchange facility
offered to TPOU shareholders. This mechanism allows qualifying shareholders
to exchange a portion of their TPOU shareholding for shares in the underlying
Master Fund at a 2% discount to NAV, and was introduced during our campaign.
We will see 43% of our position exchanged for shares in the Master Fund, a
quarter of which can then be redeemed every quarter after an initial six-month
lock-up. This uplift has added to the strong returns that AGT had already
experienced from its holding in TPOU over the last three years.
Godrej Industries
(NAV: -29% / Price: -20% / Discount: -62% / Contribution: -0.67%)
Godrej Industries detracted -67bps from returns over the period. The shares
declined by -20% as a -29% decline in NAV was partially cushioned by a
narrowing of the discount from 66% to 62%.
NAV performance was weak across the board, with shares in Godrej Consumer,
Godrej Properties and Godrej Agrovet falling by -27%, -28% and -31%,
respectively. As one strategist put it: "Indian policymakers face an
unenviable balancing act with an incomplete recovery from COVID coinciding
with sticky and elevated inflation." In this context it has been a challenging
environment for Godrej's underlying companies, which are highly geared to
consumer spending power, face exposure to raw material input costs in the form
of Godrej Consumer, whilst also being negatively affected by increases in
interest rates at Godrej Properties, which are expected to occur later this
year. A perfect storm.
There have also been some missteps, most notably at Godrej Properties ("GPL"),
where a proposed investment in a listed real estate developer and formation of
a partnership to conduct slum rehabilitation projects drove the shares down
-15% in one day in February 2022. Both the structure of the deal (which
involved GPL taking an equity stake) and the focus of the deal (slum
redevelopments which are complex, rarely profitable and the antithesis of
GPL's normal operation) did not make much sense. Following shareholder
feedback GPL changed course and abandoned the deal. In our view this reflects
favourably on the Godrej Group in so far as they were happy to listen to the
voices of minority shareholders, and humble enough to change their mind.
Whilst the current environment remains challenging, and recent performance
frustrating, when elongating one's time horizon the outlook is more rosy. In
particular, Godrej Consumer ("GCPL") appears to be on a strong footing under
new CEO Sudhir Sitapati, who recently joined following a 22-year career at
Hindustan Unilever. A recent investor day involved a candid outsider's
assessment of GCPL's performance, strengths and weaknesses. As well as this,
GCPL set out their mid-term targets and strategy, aiming for double-digit
volume growth led by increased penetration and higher media investment, whilst
targeting 150-200bps of margin expansion. With the new CEO and (relatively)
new head of the Africa business, GCPL appears well positioned to drive growth
in value for Godrej Industries in the years ahead.
We modestly added to the position during the period. The Godrej family have
proven themselves to be excellent stewards of capital and the prospect to
invest alongside them at a 62% discount is a compelling one. Following a bout
of weakness, the prospects for long-term NAV growth are healthy, as are
returns from discount narrowing, with a normalisation of the discount to its
five-year average (48%) equating to a +37% potential return.
EXOR
(NAV: -1% / Price: -5% / Discount: -41% / Contribution: -0.47%)
EXOR detracted from performance during the period. The shares declined by -5%,
with the NAV slightly negative (-1%) and the discount widening to 41%.
Starting with the NAV, strength at Ferrari (32% of NAV), which returned +10%,
was offset by weakness at Stellantis (24%), which declined by -10%. Ferrari
reported record full year results, with sales exceeding €4bn for the first
time, a 36% EBITDA* margin and management commenting that the order book was
the strongest on record - to the extent they have stopped taking orders on
certain models.
Stellantis' maiden results were similarly impressive, with operating profit
for the second half of the year coming in at €9.4bn - some 25% ahead of
consensus analyst expectations. Markets however are forward, not backward
looking, and Russia's invasion of Ukraine combined with a higher inflationary
environment squeezing household incomes has led to some concern about a
softening of autos demand, with investors also pondering whether we have seen
peak margins in the US. On the other hand, dealer inventories remain
historically low, and whilst the mix-effect will be less rosy for margins,
volume growth is likely to improve as chip shortages abate. More importantly
though, our investment thesis for Stellantis is not a bet on the auto industry
per se, but rather predicated on the company's attractively low valuation,
with Stellantis trading at 3.8x earnings - half the multiple of Ford and GM -
and the prospect for merger synergies and value creation.
During the period EXOR agreed (for the second and hopefully final time) to
sell Partner Re to Covea for $9bn - equivalent to just under 30% of NAV. This
gives EXOR considerable capital to allocate to new investments, which we view
as an important catalyst in improving sentiment toward EXOR and narrowing the
discount, which has widened to 41%. Such a level is wide versus both its own
history and discounts of other European holding companies. We do not expect
such a wide discount to persist indefinitely. As and when this happens it will
provide a powerful fillip to returns.
Pasona Group
(NAV: -46% / Price: -23% / Discount: -68% / Contribution: -0.42%)
Pasona was the fifth largest detractor over the period, reducing returns by
42bps. The -23% share price performance was driven by a -51% fall in Benefit
One's share price, which suffered from the violent rotation away from growth
stocks, but was aided by a 6% narrowing of Pasona's discount from 77% to 68%.
Our investment in Pasona is predicated on the enormously wide discount at
which Pasona trades compared to its 50% stake in Benefit One. This listed
employee benefits platform accounts for 205% of Pasona's market cap. Pasona
also owns a collection of recruitment and outsourcing businesses, which we
think are underappreciated by the market, but that we believe are worth
another 80% of Pasona's market cap.
Over the period, Pasona continued to prove the value of its businesses outside
of Benefit One, generating a 3.1% operating margin vs 0.1% for the same period
pre-COVID. Although Pasona's unlisted businesses are still underachieving
their full potential, the past two years have seen a marked improvement in
Pasona's profitability, averaging an operating margin of 2.6% vs 0% over the
preceding five years.
Benefit One's -51% share price decline over the period was quite remarkable.
Despite completing a transformative acquisition that will increase its members
from 8.6m to 11.4m, Benefit One's EV/EBIT* fell from 66x to 32x. While we were
cognisant that the 66x valuation was a little stretched, hence why we were
reducing our position in Pasona at the end of 2021, the 33x valuation does not
seem unreasonable when considering Benefit One's business quality and 42x
three-year average multiple.
In January, Pasona announced its intention to IPO Circlace, a 43%-owned
digital transformation consulting firm, and at the start of March 2022, IPO'd
its wholly-owned subsidiary, Bewith, a business process outsourcing company.
Bewith accounts for 12% of Pasona's market cap, and including the value of
shares sold by Pasona into the IPO, 18%. It is encouraging to see Pasona
taking proactive steps to realise the value in its portfolio and allow its
underlying businesses to flourish independently.
We think that Pasona's investment case has become more compelling than at the
start of the year. We are happy to continue holding our current position on a
68% discount, with an increasing portion of Pasona's portfolio listed,
improving profitability and a reasonable Benefit One valuation.
Joe Bauernfreund
Asset Value Investors Limited
8 June 2022
*Refer to Glossary below.
INVESTMENT PORTFOLIO
At 31 March 2022
Company Portfolio classification % of IRR ROI Cost Valuation % of net assets
investee
£'000(3)( )
company (%, GBP)(1) (%, GBP)(2) £'000
Pershing Square Holdings Closed-ended Fund 0.8% 22.9% 46.9% 65,095 100,041 9.0%
EXOR Holding Company 0.5% 9.7% 26.5% 60,590 73,843 6.6%
Aker ASA Holding Company 1.3% 18.7% 115.7% 41,009 68,925 6.2%
Oakley Capital Investments Closed-ended Fund 9.1% 28.2% 120.0% 28,760 67,868 6.1%
Third Point Investors Closed-ended Fund 6.4%* 10.0% 43.0% 43,576 64,807 5.8%
KKR and Co Holding Company 0.2% 53.9% 105.9% 30,305 61,358 5.5%
Sony Corp Asset-backed Special Situation 0.1% 26.2% 70.0% 32,612 60,756 5.4%
Fondul Proprietatea Closed-ended Fund 2.6% 16.8% 91.9% 24,390 58,917 5.3%
Christian Dior Holding Company 0.1% 32.2% 65.2% 28,576 46,753 4.2%
IAC/InterActive Corp Holding Company 0.6% -33.4% -18.2% 51,667 41,058 3.7%
Top ten investments 406,580 644,326 57.8%
Nintendo Asset-backed Special Situation 0.1% -9.4% -9.4% 46,262 40,948 3.7%
Wacom Asset-backed Special Situation 4.0% 36.5% 17.8% 33,500 39,391 3.5%
Apollo Global Management 'A' Holding Company 0.1% 22.8% 8.5% 32,245 36,973 3.3%
Fomento Economico Mexicano Holding Company 0.3% 18.7% 17.5% 31,025 35,978 3.2%
Eurazeo Holding Company 0.7% 1.4% 0.4% 34,439 34,614 3.1%
Godrej Industries Holding Company 2.1% 0.0% -6.4% 35,201 32,958 3.0%
Fujitec Asset-backed Special Situation 2.0% 22.1% 49.0% 20,656 32,173 2.9%
Symphony International Holdings Closed-ended Fund 15.7% 6.6% 34.2% 26,636 26,060 2.4%
DTS Asset-backed Special Situation 3.1% 3.4% 5.0% 24,599 25,188 2.3%
Swire Pacific 'B' Holding Company 1.0% -4.4% -13.5% 40,329 23,962 2.1%
Top twenty investments 731,472 972,571 87.3%
Universal Music Group Asset-backed Special Situation 0.1% -3.5% -1.6% 18,730 18,399 1.7%
NS Solutions Asset-backed Special Situation 0.7% 5.6% 7.8% 14,707 15,589 1.3%
Pasona Group Asset-backed Special Situation 2.1% 16.8% 48.9% 9,139 13,774 1.2%
D'Ieteren Group Holding Company 0.2% 8,976.3% 31.0% 10,279 13,428 1.2%
Digital Garage Asset-backed Special Situation 1.0% 13.9% 24.4% 10,901 13,141 1.2%
SK Kaken Asset-backed Special Situation 1.8% -11.8% -32.1% 19,056 12,588 1.1%
Hipgnosis Songs Fund Closed-ended Fund 0.8% 9.3% 10.3% 11,911 12,348 1.1%
Konishi Asset-backed Special Situation 2.1% -2.8% -7.6% 9,759 8,403 0.8%
JPEL Private Equity Closed-ended Fund 18.4% 20.3% 101.4% 2,882 7,906 0.7%
Daiwa Industries Asset-backed Special Situation 1.8% -3.0% -10.7% 8,008 6,317 0.6%
Top thirty investments 846,844 1,094,464 98.2%
Toagosei Asset-backed Special Situation 0.7% -3.4% -9.4% 7,307 5,849 0.5%
Teikoku Sen-I Asset-backed Special Situation 1.5% 1.2% 2.9% 6,177 4,570 0.4%
Better Capital (2009) Closed-ended Fund 17.4% 23.1% 45.8% 1,962 2,383 0.2%
Sekisui Jushi Asset-backed Special Situation 0.3% 0.2% 0.4% 1,782 1,379 0.1%
Ashmore Global Opportunities - GBP Closed-ended Fund 8.5% 5.4% 10.7% 48 864 0.1%
VNV Global Holding Company 0.1% 81.3% 72.6% 1,332 1,038 0.1%
Eurocastle Investment Closed-ended Fund 3.2% 3.7% 4.6% 380 414 0.1%
Investments at fair value 865,832 1,110,961 99.7%
Current assets less current liabilities 75,566 6.8%
Non-current liabilities (71,979) -6.5%
Net assets 1,114,548 100.0%
1 Internal Rate of Return. Calculated from inception of AVI Global Trust's
investment. Refer to Glossary below.
2 Return on Investment. Calculated from inception of AVI Global Trust's
investment. Refer to Glossary below.
3 Cost. Refer to Glossary below.
* 6.4% of the voting rights.
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2022 (unaudited)
For the six months For the six months For the year
to 31 March 2022 to 31 March 2021 to 30 September 2021
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Income
Investment income 2 9,247 - 9,247 6,168 27 6,195 20,376 27 20,403
(Losses)/gains on financial assets and financial liabilities held at fair - (153) (153) - 216,478 216,478 - 289,398 289,398
value
Exchange gains/(losses) on currency balances - 2,431 2,431 - (101) (101) - 705 705
9,247 2,278 11,525 6,168 216,404 222,572 20,376 290,130 310,506
Expenses
Investment management fee (1,195) (2,787) (3,982) (997) (2,327) (3,224) (2,138) (4,988) (7,126)
Other expenses (including irrecoverable VAT) (1,313) (22) (1,335) (884) - (884) (1,735) - (1,735)
Profit/(loss) before finance costs and taxation 6,739 (5,31) 6,208 4,287 214,077 218,364 16,503 285,142 301,645
Finance costs (480) (1,131) (1,611) (455) (1,072) (1,527) (955) (2,248) (3,203)
Exchange gains on loan revaluation - 730 730 - 4,704 4,704 - 2,385 2,385
Profit/(loss) before taxation 6,259 (932) 5,327 3,832 217,709 221,541 15,548 285,279 300,827
Taxation** 101 - 101 (350) - (350) (1,259) (5) (1,264)
Profit for the period 6,360 (932) 5,428 3,482 217,709 221,191 14,289 285,274 299,563
Earnings per Ordinary Share 3 1.25p (0.18p) 1.07p 0.66p* 41.44p* 42.10p* 2.74p* 54.62p* 57.36p*
* Restated for Share Split.
** Includes refunds of withholding tax previously written off.
The total column of this statement is the Income Statement of the Company
prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006. The supplementary revenue and
capital columns are presented in accordance with the Statement of Recommended
Practice issued by the Association of Investment Companies ('AIC SORP').
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the period.
There is no other comprehensive income, and therefore the profit for the six
months after tax is also the total comprehensive income.
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2022 (unaudited)
Ordinary Capital redemption reserve Share premium £'000 Capital Merger reserve £'000 Revenue Total
share £'000 reserve reserve £'000
capital £'000 £'000
£'000
For the six months to 31 March 2022
Balance as at 30 September 2021 11,600 7,335 28,078 1,016,881 41,406 27,922 1,133,222
Ordinary Shares bought back and held in treasury (555) 555 - (13,381) - - (13,381)
Ordinary Shares bought back for cancellation (56) 56 - - - - -
Cost of Share Split - - - (36) - - (36)
Total comprehensive income for the period - - - (932) - 6,360 5,428
Ordinary dividends paid (see note 6) - - - - - (10,685) (10,685)
Balance as at 31 March 2022 10,989 7,946 28,078 1,002,532 41,406 23,597 1,114,548
For the six months to 31 March 2021
Balance as at 30 September 2020 11,600 7,335 28,078 764,245 41,406 30,941 883,605
Ordinary Shares bought back and held in treasury - - - (8,332) - - (8,332)
Total comprehensive income for the period - - - 217,709 - 3,482 221,191
Ordinary dividends paid - - - - - (11,040) (11,040)
Balance as at 31 March 2021 11,600 7,335 28,078 973,622 41,406 23,383 1,085,424
For the year ended 30 September 2021
Balance as at 30 September 2020 11,600 7,335 28,078 764,245 41,406 30,941 883,605
Ordinary Shares bought back and held in treasury - - - (32,638) - - (32,638)
Total comprehensive income for the year - - - 285,274 - 14,289 299,563
Ordinary dividends paid (see note 6) - - - - - (17,308) (17,308)
Balance as at 30 September 2021 11,600 7,335 28,078 1,016,881 41,406 27,922 1,133,222
The accompanying notes are an integral part of these financial statements.
BALANCE SHEET
As at 31 March 2022 (unaudited)
Notes At 31 March At 31 March At 30 September
2022 2021 2021
£'000
£'000
£'000
Non-current assets
Investments held at fair value through profit or loss 1,110,961 1,160,785 1,196,201
1,110,961 1,160,785 1,196,201
Current assets
Other receivables 5,716 3,245 4,572
Cash and cash equivalents 128,605 37,746 68,418
134,321 40,991 72,990
Total assets 1,245,282 1,201,776 1,269,191
Current liabilities
Total Return Swap liabilities - - (1,091)
Revolving credit facility (56,333) (42,629) (59,821)
Other payables (2,422) (1,409) (2,358)
(58,755) (44,038) (63,270)
Total assets less current liabilities 1,186,527 1,157,738 1,205,921
Non-current liabilities
4.184% Series A Sterling Unsecured Loan Notes 2036 (29,910) (29,902) (29,906)
3.249% Series B Euro Unsecured Loan Notes 2036 (25,279) (25,487) (25,715)
2.93% Euro Unsecured Loan 2037 (16,790) (16,925) (17,078)
(71,979) (72,314) (72,699)
Net assets 1,114,548 1,085,424 1,133,222
Equity attributable to equity Shareholders
Ordinary share capital 10,989 11,600 11,600
Capital redemption reserve 7,946 7,335 7,335
Share premium 28,078 28,078 28,078
Capital reserve 1,002,532 973,622 1,016,881
Merger reserve 41,406 41,406 41,406
Revenue reserve 23,597 23,383 27,922
Total equity 1,114,548 1,085,424 1,133,222
Net asset value per Ordinary Share - basic 4 221.19p 207,61p* 221.95p*
Number of shares in issue excluding treasury 5 503,878,050 522,809,015* 510,566,625*
* Restated for Share Split.
The accompanying notes are an integral part of these financial statements.
Registered in England & Wales No. 28203
STATEMENT OF CASH FLOWS
For the six months ended 31 March 2022 (unaudited)
Six months to Six months to Year to
31 March 31 March 30 September
2022 2021 2021
£'000 £'000 £'000
Reconciliation of profit before taxation to net cash (outflow)/inflow from
operating activities
Profit before taxation 5,290 221,541 300,827
Losses/(gains) on investments held at fair value through profit or loss 154 (216,478) (289,398)
Decrease/(increase) in other receivables 974 (1,175) (2,438)
(Decrease)/increase in other payables 704 (627) (438)
Taxation paid* 76 (159) (1,138)
Exchange gains on Loan Notes and revolving credit facility (4,218) (6,243) (5,304)
Amortisation of debenture and loan issue expenses 10 9 20
Net cash (outflow)/inflow from operating activities 2,990 (3,132) 2,131
Investing activities
Purchases of investments (156,120) (331,962) (655,244)
Sales of investments 237,653 354,255 716,184
Cash inflow from investing activities 81,533 22,293 60,940
Financing activities
Dividends paid (10,685) (11,040) (17,308)
Payments for Ordinary Shares bought back and held in treasury (13,587) (8,775) (32,371)
Net drawdown of revolving credit facility - 6,798 23,426
Cash outflow from financing activities (24,272) (13,017) (26,253)
Increase in cash and cash equivalents 60,251 6,144 36,818
Reconciliation of net cash flow movements in funds:
Cash and cash equivalents at beginning of period 68,418 31,596 31,596
Exchange rate movements (61) 6 4
Increase in cash and cash equivalents 60,251 6,144 36,818
Increase in net cash 60,190 6,150 36,822
Cash and cash equivalents at end of period 128,608 37,746 68,418
* Includes refunds of withholding tax previously written off.
The accompanying notes are an integral part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 March 2022 (unaudited)
1. Significant accounting policies
The condensed financial statements of the Company have been prepared in
accordance with International Accounting Standards (IAS) 34 - "Interim
Financial Reporting".
In the current period, the Company has applied amendments to IFRS. These
include annual improvements to IFRS, changes in standards, legislative and
regulatory amendments, changes in disclosure and presentation requirements
including updates related to COVID-19. The adoption of these has not had any
material impact on these financial statements and the accounting policies used
by the Company followed in these half-year financial statements are consistent
with the most recent Annual Report for the year ended 30 September 2021.
Going concern
The financial statements have been prepared on a going concern basis and on
the basis that approval as an investment trust company will continue to be
met.
The Directors have made an assessment of the Company's ability to continue as
a going concern and are satisfied that the Company has adequate resources to
continue in operational existence for a period of at least 12 months from the
date when these financial statements were approved.
In making the assessment, the Directors of the Company have considered the
likely impacts of international and economic uncertainties on the Company,
operations and the investment portfolio. These include, but are not limited
to, the impact of COVID-19, the war in Ukraine, supply shortages and
inflationary pressures.
The Directors noted that the Company, with the current cash balance and
holding a portfolio of liquid listed investments, is able to meet the
obligations of the Company as they fall due. The current cash balance plus
available additional borrowing, through the revolving credit facility, enables
the Company to meet any funding requirements and finance future additional
investments. The Company is a closed-end fund, where assets are not required
to be liquidated to meet day to day redemptions.
The Directors have completed stress tests assessing the impact of changes in
market value and income with associated cash flows. In making this assessment,
they have considered plausible downside scenarios. These tests were driven by
the possible effects of continuation of the COVID-19 pandemic but, as an
arithmetic exercise, apply equally to any other set of circumstances in which
asset value and income are significantly impaired. The conclusion was that in
a plausible downside scenario the Company could continue to meet its
liabilities. Whilst the economic future is uncertain, and the Directors
believe that it is possible that the Company could experience further
reductions in income and/or market value, the opinion of the Directors is that
this should not be to a level which would threaten the Company's ability to
continue as a going concern.
The Directors, the Manager and other service providers have put in place
contingency plans to minimise disruption which have proven effective in the
past two years. Furthermore, the Directors are not aware of any material
uncertainties that may cast significant doubt on the Company's ability to
continue as a going concern, having taken into account the liquidity of the
Company's investment portfolio and the Company's financial position in respect
of its cash flows, borrowing facilities and investment commitments (of which
there are none of significance). Therefore, the financial statements have been
prepared on the going concern basis.
Comparative information
The financial information contained in this Half Year Report does not
constitute statutory accounts as defined in the Companies Act 2006. The
financial information for the half-year period ended 31 March 2022 has not
been audited or reviewed by the Company's Auditor.
The comparative figures for the financial year ended 30 September 2021 are not
the Company's statutory accounts for that financial year. The statutory
accounts for the year to 30 September 2021 were reported on by the Company's
Auditor and delivered to the Registrar of Companies. The report of the Auditor
was (i) unqualified, (ii) did not include a reference to any matters to which
the Auditor drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
2. Income
6 months to 6 months to Year to
31 March
31 March
30 September
2022 2021
2021
£'000 £'000 £'000
Income from investments
UK dividends 517 - 255
UK REIT dividends - 6,359 390
Overseas dividends 8,663 - 20,045
9,180 6,359 20,690
Other income
Deposit interest 81 - 12
Total return swap interest* (22) (65) (200)
Underwriting commission - - 1
Exchange losses on receipt of income** 8 (126) (127)
9,247 (191) 20,376
Capital dividend*** - - 27
Total income 9,247 6,168 20,403
* Net income (paid)/received on underlying holdings in Total Return Swaps.
** Exchange movements arise from ex-dividend date to payment date.
*** Dividend received is attributed to a distribution of capital.
3. Earnings per Ordinary Share
6 months to 31 March 2022
Revenue Capital Total
Net profit/(loss) (£'000) 6,360 (932) 5,428
Weighted average number of Ordinary Shares 507,583,466
Earnings per Ordinary Share 1.25p* (0.18p)* 1.07p*
* Calculation includes adjustment for Share Split on 17 January 2022.
6 months to 31 March 2021
Revenue Capital Total
Net profit (£'000) 3,482 217,709 221,191
Weighted average number of Ordinary Shares 523,341,165*
Earnings per Ordinary Share 0.66p* 41.44p* 42.10p*
* Restated for Share Split.
Year to 30 September 2021
Revenue Capital Total
Net profit (£'000) 14,289 285,274 299,563
Weighted average number of Ordinary Shares 522,293,338*
Earnings per Ordinary Share 2.74p* 54.62p* 57.36p*
* Restated for Share Split.
There are no dilutive instruments issued by the Company. Both the basic and
diluted earnings per share for the Company are represented above.
4. Net asset value per Ordinary Share
The net asset value per Ordinary Share is based on net assets of
£1,114,548,000 (31 March 2021: £1,085,424,000; 30 September 2021:
£1,133,222) and on 503,878,050 (31 March 2021: 522,809,015*; 30 September
2021: 510,566,625*) Ordinary Shares, being the number of Ordinary Shares in
issue excluding shares held in treasury at the relevant period ends.
* Restated for Share Split.
5. Share capital
Number of Nominal value
shares £
Allotted, called up and fully paid
Ordinary Shares of 10p each
Balance at beginning of year 116,003,133 11,600,313
Sub division of shares 17 January 2022* into Ordinary Shares of 2p 580,015,665 -
Ordinary Shares of 2p each
Balance of shares after sub division of shares 580,015,665 11,600,313
Treasury shares cancelled (27,737,419) (554,708)
Ordinary Shares bought back and cancelled (2,799,240) (55,985)
Balance at 31 March 2022 549,479,006 10,989,580
Treasury shares Number of shares
Ordinary Shares of 10p each
Balance at beginning of the year 13,889,808
Buy back of Ordinary Shares of 10p into treasury 606,929
14,496,737
Sub division of shares 17 January 2022* into Ordinary Shares of 2p 72,483,685
Ordinary Shares of 2p each
Balance of shares after sub division of shares 72,483,685
Ordinary shares held in treasury cancelled (27,737,419)
Buy back of Ordinary Shares of 2p into treasury 854,690
Balance at end of year 45,600,956
Total Ordinary Share capital excluding treasury shares 503,878,050
Ordinary Shares of 10p each
During the period to 17 January 2022, 606,929 (six months to 31 March 2021:
989,927; year to 30 September 2021: 687,681) Ordinary Shares of 10p were
bought back and placed in treasury for an aggregate consideration of
£6,274,000 (six months to 31 March 2021: £8,332,000; year to 30 September
2021: £32,638,000).
No Ordinary Shares of 10p each were cancelled during the period to 17 January
2022 (six months to 31 March 2021: nil; year to 30 September 2021: nil).
Share Split
On 17 January 2022, the Company completed the sub-division (the "Share Split")
of each Ordinary Share of 10p each into 5 Ordinary Shares of 2p each, which
was approved by shareholders at the Annual General Meeting held on Thursday,
16 December 2021.
Following the 5 for 1 sub-division of the 10p Ordinary Shares into 2p Ordinary
Shares, the values reported with effect from close of business 17 January 2022
are calculated in accordance with the new Ordinary Shares in issue of 2p each.
The comparative figures in the Financial Statements and Notes have been
restated where indicated to reflect the Share Split.
Ordinary Shares of 2p each
During the period from 17 January 2022 to 14 February 2022, 854,690 Ordinary
Shares of 2p were bought back and placed in treasury for an aggregate
consideration of £1,723,000.
The Company's Board elected on 8 February 2022 to reduce the number of shares
in treasury, by cancelling 27,737,419 of the shares held in treasury. From 15
February 2022, 2,799,240 Ordinary Shares of 2p were bought back and cancelled
for an aggregate consideration of £5,384,000.
The allotted, called up and fully paid shares at 31 March 2022 consisted of
549,479,006 Ordinary Shares of 2p each in issue, and 45,600,956 Ordinary
Shares held in treasury. The total voting rights attaching to Ordinary Shares
in issue and ranking for dividends consisted of 503,878,050.
* Share Split
6. Dividends
During the period, the Company paid a final dividend of 10.50p (2.10p restated
for Share Split) per Ordinary Share for the year ended 30 September 2021 on 4
January 2022 to Ordinary shareholders on the register at 3 December 2021
(ex-dividend 2 December 2021).
An interim dividend of 1.2p per Ordinary Share for the period ended 31 March
2022 has been declared and will be paid on 15 July 2022 to Ordinary
shareholders on the register at the close of business on 24 June 2022
(ex-dividend 23 June 2022).
7. Values of financial assets and financial liabilities
Valuation of financial instruments
The Company measures fair values using the following hierarchy that reflects
the significance of the inputs used in making the measurements.
The fair value is the amount at which the asset could be sold or the liability
transferred in an orderly transaction between market participants, at the
measurement date, other than a forced or liquidation sale.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant assets as follows:
· Level 1 - valued using quoted prices, unadjusted in active markets
for identical assets or liabilities.
· Level 2 - valued by reference to valuation techniques using
observable inputs for the asset or liability other than quoted prices included
in Level 1.
· Level 3 - valued by reference to valuation techniques using inputs
that are not based on observable market data for the asset or liability.
Financial assets
The table below sets out fair value measurements of financial instruments as
at the period end, by the level in the fair value hierarchy into which the
fair value measurement is categorised.
Financial assets at fair value through profit or loss at 31 March 2022 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 1,107,714 - 3,247 1,110,961
1,107,714 - 3,247 1,110,961
Financial assets at fair value through profit or loss at 31 March 2021 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 1,158,111 - 2,674 1,160,785
1,158,111 - 2,674 1,160,785
Financial assets at fair value through profit or loss at 30 September 2021 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 1,193,120 - 3,081 1,196,201
1,193,120 - 3,081 1,196,201
Fair value of Level 3 investments
The following table summarises the Company's Level 3 investments that were
accounted for at fair value:
31 March 2022 31 March 2021 30 September 2021
£'000 £'000 £'000
Opening fair value of investment 3,081 2,616 2,616
Transfer from Level 1 to Level 3 in the year - 394 394
Sales - proceeds (210) (615) (616)
Realised gain/(loss) on equity sales 197 (24) (24)
Movement in investment holding gains 179 303 711
Closing fair value of investments 3,247 2,674 3,081
Financial liabilities
Valuation of Loan Notes
The Company's Loan Notes are measured at amortised cost, with the fair values
set out below. Other financial assets and liabilities of the Company are
carried in the Balance Sheet at an approximation to their fair value.
At 31 March 2022 At 31 March 2021 At 30 September 2021
Book value Fair value Book value Fair value Book value Fair value
£'000 £'000 £'000 £'000 £'000 £'000
4.184% Series A Sterling Unsecured Loan Notes 2036 (29,910) (34,227) (29,902) (35,755) (29,906) (36,519)
3.249% Series B Euro Unsecured Loan Notes 2036 (25,279) (28,019) (25,487) (31,059) (25,715) (31,779)
2.93% Euro Senior Unsecured Loan Notes 2037 (16,790) (18,161) (16,925) (20,168) (17,078) (20,700)
Total (71,979) (80,407) (72,314) (86,982) (72,699) (88,998)
There is no publicly available price for the Company's Loan Notes, their fair
market value has been derived by calculating the relative premium (or
discount) of the loan versus the publicly available market price of the
reference market instrument and exchange rates. As this price is derived by a
model, using observable inputs, it would be categorised as level 2 under the
fair value hierarchy.
The financial liabilities in the table below are shown at their fair value,
being the amount at which the liability may be transferred in an orderly
transaction between market participants. The costs of early redemption of the
Loan Notes are set out in the Glossary below.
Financial liabilities at 31 March 2022 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Loan Notes - (80,407) - (80,407)
- (80,407) - (80,407)
Financial liabilities at 31 March 2021 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Loan Notes - (86,982) - (86,982)
- (86,982) - (86,982)
Financial liabilities at 30 September 2021 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Loan Notes - (88,998) - (88,998)
Total return swap liabilities - (1,091) - (1,091)
- (90,089) - (90,089)
8. Derivatives
The Company may use a variety of derivative contracts including total return
swaps to enable the Company to gain long and short exposure to individual
securities. Derivatives are valued by reference to the underlying market value
of the corresponding security.
At 31 March At 31 March At 30 September
2022 2021 2021
£'000 £'000 £'000
Total return swaps
Current liabilities - - (1,091)
Net value of derivatives - - (1,091)
The gross positive exposure of Total Return Swaps as at 31 March 2022 was
£nil (31 March 2021: £nil; 30 September 2021: £38,396,000) and the total
negative exposure of Total Return Swaps was £nil (31 March 2021: £nil; 30
September 2021: £39,487,000). The collateral held as at 31 March 2022 was
£nil (31 March 2021: £nil; 30 September 2021: £13,349,000.
9. Related parties and transactions with the Investment Manager
The Company paid management fees to Asset Value Investors Limited during the
period amounting to £3,982,000 (six months to 31 March 2021: £3,324,000;
year ended 30 September 2021: £7,126,000 ). At the half-year end, the
following amounts were outstanding in respect of management fees: £nil (31
March 2021: £nil; 30 September 2021: £nil ).
Fees paid to the Company's Directors for the six months ended 31 March 2022
amounted to £91,000 (six months to 31 March 2021: £84,000; year ended 30
September 2021: £171,000).
10. Post Balance Sheet events
Since the period end and up to 27 May 2022, the Company has bought back
2,989,110 shares for an aggregate consideration of £5,777,000.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal long term risks facing the Company are mostly unchanged since
the date of the Annual Report 2021, as set out on pages 11 to 13 of that
report. In large parts of the world, restrictions to prevent the spread of the
COVID-19 virus have been eased or removed completely in the last few months.
However, this is not universally the case and parts of China and Hong Kong in
particular continue to have severe restrictions on movement and the Investment
Manager continues to take full account of the likely effects of the pandemic
on portfolio investments. The Board is also aware of the risk of further
outbreaks of the virus and the possibility of restrictions being reimposed
which could again affect the Company's operations. The Board has been
reassured by the ability of the Investment Manager and other key service
providers to continue to provide a good service while dealing with the effects
of COVID-19 related restrictions. The Russian invasion of Ukraine initially
led to heightened volatility in asset values. The Company has no direct
investment exposure to Russia or to Ukraine. The Investment Manager carries
out thorough, regular and detailed analyses of investee companies and takes
full account of the likely effects of the invasion when reviewing existing and
potential investments. The invasion has resulted in an increase in the
volatility of asset prices and could lead to inflation becoming entrenched at
a significantly higher level than has been experienced in developed economies
for many years, which could in turn affect asset valuations.
Risks faced by the Company include, but are not limited to, investment risk,
portfolio diversification, gearing, discount, market risk, market price
volatility, currency, liquidity risk, interest rate and credit and
counterparty risk. Details of the Company's management of these risks and
exposure to them are set out in the Annual Report 2021.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
• the condensed set of financial statements has been prepared in
accordance with the applicable set of accounting standards; and gives a true
and fair view of the assets, liabilities and financial position and return of
the Company; and
• this Half Year Report includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the Company during that period; and any changes in
the related party transactions described in the last Annual Report that could
do so.
This Half Year Report was approved by the Board of Directors on 8 June 2022
and the above responsibility statement was signed on its behalf by Susan
Noble, Chairman.
Susan Noble
Chairman
8 June 2022
GLOSSARY
Alternative Performance Measure ('APM')
An APM is a numerical measure of the Company's current, historical or future
financial performance, financial position or cash flows, other than a
financial measure defined or specified in the applicable financial framework.
Comparator Benchmark
The Company's Comparator Benchmark is the MSCI All Country World ex-US Total
Return Index, expressed in Sterling terms. The benchmark is an index which
measures the performance of global equity markets, both developed and
emerging. The weighting of index constituents is based on their market
capitalisation. Dividends paid by index constituents are assumed to be
reinvested in the relevant securities at the prevailing market price. The
Investment Manager's investment decisions are not influenced by whether a
particular company's shares are, or are not, included in the benchmark. The
benchmark is used only as a yard stick to compare investment performance.
Cost
The book cost of each investment is the total acquisition value, including
transaction costs, less the value of any disposals or capitalised
distributions allocated on a weighted average cost basis.
In the case of total return swaps, cost is defined as the notional cost of the
position.
Discount/Premium
If the share price is lower than the NAV per share it is said to be trading at
a discount. The size of the discount is calculated by subtracting the share
price from the NAV per share and is usually expressed as a percentage of the
NAV per share. If the share price is higher than the NAV per share, this
situation is called a premium.
The discount and performance are calculated in accordance with guidelines
issued by the AIC. The discount is calculated using the net asset values per
share inclusive of accrued income with debt at fair value.
Earnings before Interest, Tax, Depreciation and Amortisation ('EBITDA')
A proxy for the cash flow generated by a business - it is most commonly used
for businesses that do not (yet) generate operating or shareholder profits.
Enterprise value (EV)
A measure of a company's total value, including any debt on its balance sheet.
Enterprise value / forward EBITDA ("EV/ fwd EBITDA")
A tool used to compare the value of the whole Company, debt included, to the
Company's next year forecasted earnings before interest, taxes, depreciation,
and amortisation.
EV/EBIT
A tool used to compare the value of the whole company, debt included, to the
company's earnings before interest and taxes.
EV/EBITDA
A tool used to compare the value of the whole company, debt included, to the
company's earnings before interest, taxes, depreciation and amortisation.
Expense Ratio (APM)/Ongoing Charges Ratio
As recommended by the AIC in its current guidance, the Company's Ongoing
Charges Ratio is the sum of: (a) its Expense Ratio; and (b) the Ongoing
Charges Ratios incurred at the underlying funds in which the Company has
investments, weighted for the value of the investment in each underlying fund
as a percentage of the Company's NAV. The Company's Expense Ratio is its
annualised expenses of £9,971,000 (excluding finance costs and certain
non-recurring items) expressed as a percentage of the average monthly net
assets of £1,143,370,000 of the Company during the period.
A reconciliation of the Ongoing Charges to the Expense Ratio as at 31 March
2022 is provided below:
Expense Ratio (a Key Performance Indicator) a 0.87%
Underlying Charges Ratio b 1.39%
Ongoing Charges Ratio =a+b 2.26%
Gearing
Gearing refers to the ratio of the Company's debt to its equity capital. The
Company may borrow money to invest in additional investments for its
portfolio. If the Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the value of
the Company's assets falls, the situation is reversed. Gearing can therefore
enhance performance in rising markets but can adversely impact performance in
falling markets.
The gearing of 11.5% represents borrowings of ££128,312,000 expressed as a
percentage of shareholders' funds of £1,114,548,000. Net gearing of -0.3%
represents borrowings of £128,312,000, less net current assets of
£131,899,000, expressed as a percentage of shareholders' funds of
£1,114,548,000.
As at 31 March 2022, the values of Loan Notes were:
2036 2036 2037 JPY Total
GBP loan EUR loan EUR loan revolving £'000
£'000 £'000 £'000 credit
facility*
£'000
Value of issue 30,000 22,962 17,526 61,201 131,689
Unamortised issue costs (90) (69) (109) - (268)
Exchange movement - 2,386 (627) (4,868) (3,109)
Amortised book cost 29,910 25,279 16,790 56,333 128,312
Fair value 34,227 28,019 18,161 56,333 136,740
Redemption value 38,866 34,242 22,675 56,333 152,116
On 12 April 2022 (and after the end of the period under review) JPY9 billion
was repaid.The facility continues to be in place and the Company is able to
draw an amount equivalent to JPY9 billion on demand.
The values of the Loan Notes are calculated using net present values of future
cash-flows, the yields taking account of the market spread and exchange rates.
The redemption value includes the penalty payable on early redemption.
Internal Rate of Return ('IRR')
The IRR is the annualised rate of return earned by an investment, adjusted for
dividends, purchases and sales, since the holding was first purchased.
In some instances, we display "n/a" instead of IRR figures in the Investment
Portfolio table. In most instances, this is done if the holding period is less
than three months, as annualising returns over short-term periods can produce
misleading numbers.
LTM EBITDA
Last twelve months earnings before interest, tax, depreciation, and
amortisation.
Net Asset Value ('NAV') per share
The NAV per share is shareholders' funds expressed as an amount per individual
share. Shareholders' funds are the total of all of the Company's assets, at
their current market value, having deducted all liabilities and prior charges
at par value, or at their fair value as appropriate. The NAV per share of
221.19p is calculated by dividing the NAV £1,114,548,000 by the number of
Ordinary Shares in issue, excluding treasury shares, of 503,878,050.
The NAV with debt at fair value is calculated in the same manner but with debt
at fair value £80,407,000 , rather than the par value of £71,979,000. The
NAV with debt at fair value is therefore 219.52p.
Shareholders' Debt at Debt at Shares NAV with NAV with debt
Funds par fair Outstanding debt at at fair value
(£'000) value* value* par value
(£'000) (£'000)
31-Mar-22 1,114,548 71,979 80,407 503,878,050 221.19 219.52
31-Mar-21 1,085,424 72,314 86,982 522,809,015** 207.61** 204.81**
30-Sep-21 1,133,222 72,699 88,998 510,566,625** 221.95** 218.76**
* Not including the Revolving Credit Facility, which is not fair valued.
** Restated for Share Split.
Portfolio weighted-average discount
The portfolio weighted-average discount is calculated as being the sum of the
products of each holding's weight in AGT's portfolio times its discount. AVI
calculates an estimated sum-of-the-parts NAV per share for each holding in
AGT's portfolio. This NAV is compared with the share price of the holding in
order to calculate a discount.
Return on Investment ('ROI')
The ROI is the total profits earned to date on an investment divided by the
total cost of the investment.
Shares bought back and held in treasury
The Company may repurchase its own shares and shares repurchased may either be
cancelled immediately or held in treasury. Shares repurchased, whether
cancelled or held in treasury, do not qualify to vote at shareholder meetings
or receive dividends. Share repurchases may increase earnings per share.
Further, to the extent that shares are repurchased at a price below the
prevailing net asset value per share this will enhance the net asset value per
share for remaining shareholders.
Total Return - NAV and Share Price Returns
The combined effect of any dividends paid, together with the rise or fall in
the share price or NAV. Total return statistics enable the investor to make
performance comparisons between investment trusts with different dividend
policies. Any dividends received by a shareholder are assumed to have been
reinvested in either additional shares in the Company or in the assets of the
Company at the prevailing NAV, in either case at the time that the shares
begin to trade ex-dividend. An annualised return is the average compound
annual return, for return data over a period of time longer than a year.
Weight
Weight is defined as being each position's value as a percentage of total
assets less current liabilities.
SHAREHOLDER INFORMATION
Dividends
Shareholders who wish to have dividends paid directly into a bank account
rather than by cheque to their registered address can complete a mandate form
for the purpose. Mandate forms may be obtained from Equiniti Limited, Aspect
House, Spencer Road, Lancing, West Sussex BN99 6DA on request or downloaded
from Equiniti's website www.shareview.co.uk (http://www.shareview.co.uk) . The
Company operates the BACS system for the payment of dividends. Where dividends
are paid directly into shareholders' bank accounts, dividend tax vouchers are
sent to shareholders' registered addresses.
Share Prices
The Company's Ordinary Shares are listed on the London Stock Exchange under
'Investment Trusts'. Prices are published daily in The Financial Times, The
Times, The Daily Telegraph, The Scotsman and The Evening Standard.
Change of Address
Communications with shareholders are mailed to the last address held on the
share register. Any change or amendment should be notified to Equiniti Limited
at the address given above, under the signature of the registered holder.
Daily Net Asset Value
The net asset value of the Company's shares can be obtained by contacting
Customer Services on 020 7659 4800 or via the website: www.aviglobal.co.uk
(http://www.aviglobal.co.uk) .
COMPANY INFORMATION
Directors
Susan Noble (Chairman)
Anja Balfour
Neil Galloway
Graham Kitchen
Nigel Rich (retired from the Board on 16 December 2021)
Calum Thomson
Secretary
Link Company Matters Limited
Beaufort House
51 New North Road
Exeter
Devon EX4 4EP
Tel: 01392 477500
Registered Office
Beaufort House
51 New North Road
Exeter
Devon EX4 4EP
Registered in England & Wales
No. 28203
Investment Manager and AIFM
Asset Value Investors Limited
2 Cavendish Square
London W1G 0PU
Registrar and Transfer Office
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Registrar's Shareholder Helpline
Tel. 0371 384 2490
Lines are open 8.30am to 5.30pm, Monday to Friday.
Corporate Broker
Jefferies Hoare Govett
100 Bishopsgate
London EC2N 4JL
Auditor
KPMG LLP
319 St Vincent Street
Glasgow G2 5AS
Depositary
J.P. Morgan Europe Limited
25 Bank Street
London E14 5JP
Banker and Custodian
JPMorgan Chase Bank NA
125 London Wall
London EC2Y 5AJ
A copy of the Half Year Report can be viewed and downloaded from the Company's
website:
www.aviglobal.co.uk (http://www.aviglobal.co.uk) .
The content of the Company's web-pages and the content of any website or pages
which may be accessed through hyperlinks on the Company's web-pages or this
announcement is neither incorporated into nor forms part of the above
announcement.
National Storage Mechanism
A copy of the Half Year Report will be submitted shortly to the National
Storage Mechanism ('NSM') and will be available for inspection at the NSM,
which is situated at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
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