abrdn Diversified Income and Growth (ADIG) announced its annual report for the period ending 30 September 2023. The company’s NAV total return was +0.4%. In line with wider market volatility affecting the whole investment trust sector, the discount continued to widen to 25.7% as shares fell just over 6.9% over the year; this represented a shareholder total return of -0.7%.
The company’s persistent and entrenched discount led the directors to commence a strategic review in June 2023 which resulted first in an enhanced distribution programme, and then eventually a managed wind-down of the company which was announced on December 14 2023. The board expects that approximately £115m would be returned to shareholders in the first half of 2024 at, or close to, NAV with further returns of cash to follow as value is realised from the company’s private markets portfolio in a timely and efficient manner. Approximately £107.3m of the company’s private markets portfolio (valued as at 30 November 2023) is expected to mature between 2024 and 2027 (the first tranche). It is intended that the proceeds from the first tranche will be returned to shareholders in a timely manner as the investments mature. The remaining £81.5m of the private markets portfolio (valued as at 30 November 2023) is expected to mature between 2029 and 2033 (the second tranche). As market conditions improve, opportunistic secondary sales of second tranche assets would be considered in order to realise value from these assets in a timely manner.
The company has also ceased making new investments (outside of existing commitments and to support the managed wind-down).
ADIG : abrdn Diversified Income and Growth begins wind down