The Lemon Fool

"Update: Abrdn Diversified Income & Growth, the 125-year-old investment trust formerly known as British Assets, starts its final chapter as heavily discounted fund of funds launches strategic review and looks for merger partner."

https://citywire.com/wealth-manager/new ... w/a2419760

The report also mentions a possible liquidation of assets.

I used to hold but gave up!
viewtopic.php?p=572635#p572635

monabri wrote:"Update: Abrdn Diversified Income & Growth, the 125-year-old investment trust formerly known as British Assets, starts its final chapter as heavily discounted fund of funds launches strategic review and looks for merger partner."

https://citywire.com/wealth-manager/new ... w/a2419760

The report also mentions a possible liquidation of assets.

I used to hold but gave up!
viewtopic.php?p=572635#p572635

Over 5 years the total return has been -6.27%. However the discount is sitting at -25.75% (today's figures from Hargreaves Lansdown). So if their investments are liquid at the present quoted NAV, then liquidation would bring some relief to long term holders.

scotia wrote:Over 5 years the total return has been -6.27%. However the discount is sitting at -25.75% (today's figures from Hargreaves Lansdown). So if their investments are liquid at the present quoted NAV, then liquidation would bring some relief to long term holders.

Since I've been re-investing the dividends, I have not been unhappy with a large discount, but of course if I can now get the full price of the shares I shall make a large gain and be happier.

The trouble with this IT seems to be many.

It is neither fish nor fowl with its investment portfolio. Admittedly that is what it says on the tin but even so.

Its association with the failed abrdn investment house

It is very small with net assets of only £352 million and consequent high charges of 1.35%.

And a persistently high discount to NAV. As at 31 March 2023 it was 29.8% despite, the Chairman says using share buybacks.

The half year results are not too bad with NAV up 2.2% and a yield of 7% but the historic results are very poor.

I would imagine that they will seek to 'merge' with another trust and it will disappear from the scene. A great shame since it is another long established trust set up the well known firm of Ivory and Sime over a century ago, but I doubt that it will be missed.

I have always thought that there are too many small ITs. We have seen a lot of mergers/liquidations in recent years and I am sure this will not be the last.

Dod

https://www.investegate.co.uk/announcem ... nd/7914976

"1 December 2023

Fourth Interim Dividend for the year ended 30 September 2023

The Board of abrdn Diversified Income and Growth plc (the "Company") announces that it is declaring a Fourth Interim Dividend in respect of the year ended 30 September 2023 of 1.42 pence per share on the Ordinary shares of the Company.

The Fourth Interim Dividend will be paid on 22 January 2024 to shareholders on the register on 22 December 2023. The ex-dividend date is 21 December 2023."

https://www.investegate.co.uk/announcem ... ny/7941103

"........the Board has concluded that it is in the best interests of shareholders as a whole to put forward proposals for a managed wind-down of the Company (the "Managed Wind-Down")."

monabri wrote:https://www.investegate.co.uk/announcement/rns/abrdn-diversified-income-and-growth--adig/proposals-for-managed-wind-down-of-the-company/7941103

"........the Board has concluded that it is in the best interests of shareholders as a whole to put forward proposals for a managed wind-down of the Company (the "Managed Wind-Down")."

Is that not just the worst outcome for all concerned? Years of unwinding while costs of running the dead duck continue. No one else wanted the assets?

Boy did the Directors get that one wrong. And of course those few shareholders who are not unhappy at recovering the discount to NAV? Seems highly unlikely that they will see anything like the quoted NAV after costs and the Trust being a forced seller.

Dod

Dod101 wrote:

monabri wrote:https://www.investegate.co.uk/announcement/rns/abrdn-diversified-income-and-growth--adig/proposals-for-managed-wind-down-of-the-company/7941103

"........the Board has concluded that it is in the best interests of shareholders as a whole to put forward proposals for a managed wind-down of the Company (the "Managed Wind-Down")."

Is that not just the worst outcome for all concerned? Years of unwinding while costs of running the dead duck continue. No one else wanted the assets?

Boy did the Directors get that one wrong. And of course those few shareholders who are not unhappy at recovering the discount to NAV? Seems highly unlikely that they will see anything like the quoted NAV after costs and the Trust being a forced seller.

Dod

Share price up about 10% on the news (takes it back up to the level about 6 months ago), so plenty seem happy with it.

ADIG has struggled for direction for some years now. I recollect a fellow poster commenting that it was OK apart from the G (growth) in its name. I too had a brief sorti with it years ago, but then moved on.

That will further help reduce the number of trusts in the Abrdn stable, ASCI currently being absorbed into Shires.

EthicsGradient wrote:

Dod101 wrote:
Is that not just the worst outcome for all concerned? Years of unwinding while costs of running the dead duck continue. No one else wanted the assets?

Boy did the Directors get that one wrong. And of course those few shareholders who are not unhappy at recovering the discount to NAV? Seems highly unlikely that they will see anything like the quoted NAV after costs and the Trust being a forced seller.

Dod

Share price up about 10% on the news (takes it back up to the level about 6 months ago), so plenty seem happy with it.

No doubt the relief of getting some cash at NAV at least in the short term, Anyway it is does affect me but what an admission of failure.

Dod

richfool wrote:That will further help reduce the number of trusts in the Abrdn stable, ASCI currently being absorbed into Shires.

That'll be the same SHIRES that I bought in Sep 1998 at 3.81 and in Oct 1999 at 4.33
Was it Prof Unwin who used to say "Great joy"
And yes, this clown also bought ADIG (then BrAssetts) at c1.44
Ooh the shame...

Dod101 wrote:
No doubt the relief of getting some cash at NAV at least in the short term, Anyway it is does affect me but what an admission of failure.

Dod

Methinks there's a few letters missing!

monabri wrote:

Dod101 wrote:
No doubt the relief of getting some cash at NAV at least in the short term, Anyway it is does affect me but what an admission of failure.

Dod

Methinks there's a few letters missing!

Indeed. It does not affect me but it is a real shame for all concerned and tends to show surely that straying too far from the conventional path is unwise.

No one, least of all I imagine, the managers, wanted this sort of outcome.

Dod

Dod101 wrote:The trouble with this IT seems to be many.



It is very small with net assets of only £352 million and consequent high charges of 1.35%.



Dod

Is it all that small by IT standards though? Its total assets are around double the size of Abrdn Equity Income and closer to three times those of Shires Income, and it's not too far behind Dunedin Income Growth by this measurement.

I've held this trust for three years or so, and bought mainly in the range 90p-100p, so stand to be ending up with a significant overall loss barring a miracle. Apparently there's to be a big payout from asset sales at the end of June - should be interesting.....