Mobius (MMIT), the £166m emerging markets smaller companies investment trust, proposes moving its triennial 100% redemption facility to two-yearly once the next redemption in December is complete. That would mean the next exit opportunity would be in 2027.
James Carthew, head of investment company research at QuotedData, commented: “As I have said before, I think these exits work better for investors when they are less frequent – every five-seven years, for example. More frequent exit opportunities encourage short-term thinking.”
Baillie Gifford Japan (BGFD) delivered improved performance for the year to 31 August with a 20.5% investment return that beat the 12.1% of its Topix index benchmark. Returns in the £788m portfolio managed by Matthew Brett and Brian Lum were powered by a recovery in Softbank, its largest position, and £75.2m of share buybacks that added 1.5% to net asset value. These were in response to the stock trading more than 10% below NAV and underpinned a 20.9% return to shareholders. Over longer periods, however, total shareholder returns remain depressed, delivering 16% over five years versus 53.4% for the benchmark, and 114.2% over 10 years below the 137.2% from the index. However, over a decade, underlying growth in NAV has been ahead at 152.2%. BGFD’s board “remains confident that the strategy of concentrating on innovative, growth-oriented businesses positions the company well to generate superior returns over time.” The final dividend was held at 10p per share.
European Smaller Companies Trust (ESCT) caps off an eventful second half by posting a 14.5% investment return for the year to 30 June, 0.5% ahead of its benchmark. However, shareholders benefited from a 21.9% total return as the company bought out activist hedge fund Saba with a 42.5% tender offer and then restored its assets to £812m through the merger with European Assets Trust. The portfolio managed by Janus Henderson’s Ollie Beckett, Rory Stokes and Julia Scheufler remains ahead of the MSCI Europe ex UK Small Cap index over three, five and ten years.
Warehouse investor Segro (SGRO) says improving tenant sentiment has driven a strong third quarter with £22m of new lettings and its developments showing momentum with the “most productive” quarter of pre-lettings since the start of last year. The growing data centre pipeline is also demonstrating “significant value creation”. The shares rose 3.2% to 694.4p.
Riverstone Energy (RSE) advances its rapid wind-down with the sale of Onyx Power to ResInvest Group. Net proceeds to the company are expected to be around $49m when the transaction completes early next year, which the company will pay out through another compulsory share purchase. The disposal represents the bulk of the remaining portfolio following other recent significant sales.
BioPharma Credit (BPCR) says Biocryst Pharmaceuticals has repaid $79.5m of borrowing and $2.6m of fees following the sale of its European business. BPCR has also funded the $30m senior secured loan to Valneva announced last month.
Crystal Amber (CRS) intends to buy back up to £3m or 1.8m shares up to 30 November. The activist fund has returned £20.6m to shareholders through buybacks since December 2023.
