AVI Global (AGT) says a poor September at the end of its financial year caused the £1bn investment trust to underperform with a 12.4% investment return in the 12 months to 30 September lagging the 16.8% return of the MSCI All Country World index. Shareholders got more than the underlying growth in net asset value (NAV) with a total return of 15.4% as the discount, or gap, between the share price and NAV narrowed from 9% to 6.7%, helped by the company buying back 5.9% of its shares. The portfolio of 45 holding and investment companies was marginally ahead of the MSCI index at the end of August but fell 4.1% behind the benchmark in September as US tech stocks, which it doesn’t own, rallied. Among its holdings, D’Ieteren, the Belgian car glass repair group, fell after a strong run. Shares in medical equipment maker Gerresheimer plunged after Germany’s financial regulator said it was investigating suspected accounting violations.
Scottish Oriental Smaller Companies (SST), the £328m trust run by Martin Lau and Sreevardhan Agarwal at First Sentier Investors, significantly underperformed in the year to 31 August with a 1.6% investment loss against the 8.2% rise in the MSCI AC Asia ex-Japan Small Cap index. Shareholders eked out a 3.5% return as the share price discount narrowed from 14% to 9.6% as the company bought back 2.4% of its shares. The underperformance was driven by the managers’ underweight to semi-conductor and AI-related companies in Taiwan, Korea and China.
Picton Property Income (PCTN), the £411m UK generalist real estate investment trust, reports a 3.4% total portfolio return for the half-year to 30 September “set against a backdrop of a resilient UK commercial property market, showing small but positive capital and rental growth, despite weak business confidence more generally”. The total shareholder return was 12.1% after the company expanded share buybacks to £30m this year. EPRA earnings per share dipped 2% to 2p, reflecting the timing of lease activity and lower occupancy, but covering the interim 1.9p dividend, up 2.7% from 1.85p, by 106%. Net tangible assets (NTA) rose 2% to 102p. At 79p the shares stand on a 23% discount.
Regional REIT (RGL), a £171m, 8%-yielder struggling on a 49% discount, says in a third quarter trading update that it “faces a subdued investment market with positive leasing momentum hampered by extended transaction timelines and persistent uncertainty” as prospective tenants delay decisions ahead of the Budget on 26 November. It remains “focused on strategic disposals and repositioning assets to unlock planning-led value”. During the quarter, it made £17.1m of disposals at 1% above the 30 June valuation and expects to achieve the upper end of its £40m to £50m target of disposals for the full year. ·Net loan-to-value ratio of 41.8% was unchanged from a year ago.
Activist investor Saba Capital has disclosed a 5% stake in Vietnam Enterprise (VEIL). Shares in the £1.8bn investment company have rallied 41% since April, narrowing the discount from 25% to 14%.
GCP Infrastructure (GCP) is on track to complete the £50m return of capital announced last year in response to its wide share price discount, currently 28%. Ahead of its annual report next month, the £613m investment company says it is working on a number of disposals that in addition to funding share buybacks that have so far totalled £23m, will repay its remaining £20m of borrowing. As already announced, net asset value was 101.4p per share at 30 September. The shares yield 9.5%.
Finsbury Growth & Income (FGT) says over 96% of shareholder votes at yesterday’s general meeting approved a renewal of its buyback authority. The £1bn UK equity income trust managed by Nick Train is on track for its fifth year of underperformance and stands on an 8% discount and faces a continuation vote in January.
Majedie Investments (MAJE) says its fund manager Marylebone Partners has received regulatory approval to become part of Brown Advisory, with change of control expected to be effective from 21 November. The merger was announced in June.
Shaftesbury Capital (SHC), the £2.8bn West London focused property company, says executive director Michelle McGrath will leave at the end of December for a new role after nine years with the group in which she helped shape its real estate strategy.
