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Trustnet

Trustnet Magazine, January 2022

Despite being the second-best performer in the IT Global sector last year, the discount on Joe Bauernfreund’s trust remains twice that of its average peer.

The AVI Global Trust was one of the best performers in the IT Global sector in 2021, benefiting from a closing discount.

It made 24.7% last year, putting it just behind the Allianz-run Brunner Investment Trust. Although its discount has closed from an average of about 8% last year to 4.8% today, this is still about twice as large as the sector average. Analysts at Kepler said there is scope for this discount to narrow further if investors continue to use the trust to take advantage of the postpandemic recovery.

Kepler is also bullish on the trust from an ESG standpoint, saying it is one of the few strategies that offers exposure to this theme without being wedded to growth.

“AGT’s highly activist approach to investing represents a fulfilment of one of the most onerous requirements of ESG: active engagement around ESG issues,” it said. “Ardent ESG investors may thus find AGT a very attractive strategy, as the investment rationale for many of its holdings is based on the improvement of their ESG credentials, in particular their poor governance.”

James Carthew, head of investment companies at QuotedData, is also a fan of the trust’s activist approach.

“AVI has been vocal, where it needs to, about what needs to be done to unlock value for investors,” he said.

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