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RNS Number : 1059W  AVI Global Trust PLC  10 March 2026

 

AVI GLOBAL TRUST PLC

 

Monthly Update

 

AVI Global Trust plc (the "Company") presents its Update, reporting
performance figures for the month ended 28 February 2026.

 

This Monthly Newsletter is available on the Company's website at:
AGT-FEBRUARY-2026.pdf
(https://www.assetvalueinvestors.com/content/uploads/2026/03/AGT-Newsletter-FEB-2026.pdf?mc_cid=9bfb226db9&mc_eid=335e1499b3)

 

This investment management report relates to performance figures to 28
February 2026.

 

 Total Returns (%)   Month  1Y    5Y    10Y
 NAV p/s(1)          3.6    12.1  62.7  242.8
 MSCI ACWI(2)        3.4    16.3  81.0  251.0
 MSCI ACWI ex US(2)  7.2    30.8  65.7  180.9

 

All performance shown net of fees in GBP Total Return as at 28/02/2026.

(1)Net Asset Value cum-fair.

(2)From 1st October 2023, the comparator benchmark was changed to the MSCI
ACWI Index. Prior to this, from 1st October 2013, the comparator benchmark was
the MSCI ACWI ex US Index.

Source: Morningstar, S&P Capital IQ

 

Manager's Comment

AGT's NAV increased by +3.6% in February 2026.

Performance was broad-based with Samsung C&T (+105bps) the standout
performer, followed by Jardine Matheson (+85bps) and HD Hyundai (+65bps).
Indeed, it is interesting to observe that the nine largest contributors were
all listed in Asia and delivered returns between +9% and +25%.

At the bottom of the table was Chrysalis, shares in which declined -13% over
the month, shaving off -93bps from NAV. News Corp (-54bps) and Vivendi
(-33bps) also detracted.

Over the month we took some profit in Samsung C&T and HD Hyundai as
discounts narrowed and underlying valuations rose. We have also continued to
clean up the tail: we sold the last of our shares in Gerresheimer, which had
been a heavily loss making and bruising investment where the original
investment thesis was no longer valid, whilst also fully exiting Entain. We
have continued to add to EXOR - on close to its widest ever discount - and
added to News Corp on weakness.

March Market Commentary

 

Writing on the 9th of March, February already feels but a distant memory, as
geopolitical tension in the Middle East has moved beyond rhetoric, following
coordinated joint attacks on Iran from the US and Israel. This has led to
considerable volatility in global equity markets, with emerging market
equities and currencies suffering their worse week since the pandemic.

 

Korea- which accounted for 18% of NAV at the end of February has been at the
centre of this, with the Kospi down -16% so far in March. In many ways this
doesn't surprise us - it had been the best performing stock market of the last
year, up +72%- and was likely to suffer from profit taking and risk appetite
reduction in a market correction. That said, the extent of some share price
declines and discount moves have been quite staggering.

 

Despite this we remain relatively sanguine: In Korea we have assembled a
collection of ten diverse holdings, with strong earnings growth prospects,
trading on very wide discounts, and set to benefit from improved governance
reform. On the latter, progress continues with the third amendment to the
Commercial Act having passed at the end of February 2026, which will see all
existing treasury shares cancelled within 18 months and newly bought back
shares cancelled within one year. Although an imperfect analogy, our
experience from Japan- looking through the noise, focussing on the
fundamentals and the prize on offer through governance reform- helps navigate
such an environment.

Whether the war in the Middle East transpires into a longer and more
protracted conflict remains to be seen. The economic impact will depend upon
the extent of disruption to energy markets and shipping routes, which have the
potential to lower growth and increase inflation. In the last few days, the
market has started to price more severe energy disruption as a more meaningful
possibility, with sharp declines in equities and oil breaching $110 per
barrel.

As is common in times of market stress, discounts have widened serving as an
additional headwind to NAV weakness. At the time of writing the portfolio
weighted average discount stands just 2008 financial crisis, the Eurozone
crisis and Covid-2020. north of 40%- a level previously observed during the
2008 financial crisis, the Eurozone crisis and Covid-2020.

Whilst discounts can move wider, such levels do not typically persist for long
periods of time. Such volatility is painful in the short-term, however, in the
long-run, it gives rise to great opportunity. As we will come onto below,
following the sale of Toyota Industries, AGT is now in a net cash position and
has ~£170m of available fire power. This leaves us well positioned to take
advantage of exaggerated share price and discount moves.

Toyota Industries

In last month's newsletter
(https://www.assetvalueinvestors.com/content/uploads/2026/02/AGT-Newsletter-JAN-2026.pdf)
we discussed how we had recently made Toyota Industries the largest position,
reflecting what we perceived to be an asymmetric set up.

After month end it was announced that Toyota Group had raised its offer for
Toyota Industries by +10% to 20,600 Yen per share, a 26% increase from its
initial bid. This latest bid is in line with the Company's book value, and
whilst undoubtedly an attractive price for the acquirers, represents a much
fairer outcome for minority shareholders. It also represents an important
milestone for Japanese corporate governance reform, and the power of activism
in Japan.

Following the higher bid, we sold the entirety of the position, generating
proceeds just north of £100m, or almost 9% of AGT's NAV. In doing-so, gearing
has reduced from ~5% at February month end to ~4% net cash.

Having re-initiated a position in Toyota Industries in 2023, over the course
of the investment it generated an IRR of +30% (in Yen), compared to -8% for
the TOPIX and +19% for the MSCI AC World Index (also in Yen).

Contributors / Detractors (in GBP)(4)

 

 Largest Contributors  1- month contribution  % Weight(3)

                       bps
 Samsung C&T           105                    5.0
 Jardine Matheson      85                     6.0
 HD Hyundai            65                     2.3
 Kyocera Corp          59                     3.6
 Mitsubishi Logistics  48                     5.4

 

 Largest Detractors          1- month contribution  % Weight(3)

                             bps
 Chrysalis Investments       -93                    6.0
 News Corp A                 -54                    5.9
 Vivendi                     -33                    5.5
 Oakley Capital Investments  -27                    3.3
 D'Ieteren                   -26                    6.8

 

(3)All Figures shown as % of Net Asset Value

(4)Contributors and detractors from Factset

 

 

MUFG Corporate Governance Limited

Corporate Secretary

 

10 March 2026

 

LEI: 213800QUODCLWWRVI968

 

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, other
than the content of the Newsletter referred to above, is neither incorporated
into nor forms part of the above announcement.

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