ACTIVELY MANAGED. DESIGNED TO PERFORM. Sparking change to deliver value.
We look for quality assets with growth potential trading at a discount with an identifiable catalyst for narrowing the discount. We engage actively with management, directors and shareholders to seek an exit opportunity at a tighter discount. Discount contraction is key, and we look to be a dominant shareholder to instigate change. The universe of listed closed-end funds is a rich and diverse one, with almost 300 investable funds in London alone, of which approximately 200 are on a discount. We look for a number of qualities when we consider a closed-end fund as an investment. Most importantly, we look for diversified portfolios of high-quality assets (both listed and unlisted) with good growth potential. Our portfolio of closed-end funds gives us exposure to a number of quality companies,
such as: Starbucks, Berkshire Hathaway, Time Out, Essilor Luxottica, Nestle, Minor International, Centauro, Lowe’s and many more. We also focus to a great extent on the discount to NAV at which the closed-end fund under consideration trades. In a nuanced distinction from holding companies, we insist on a high probability of the discount narrowing or vanishing entirely before we will consider making an investment. This would predict that a greater proportion of our returns should come from discount narrowing – and we find this to be the case. Historically, our portfolio of closed-end funds has generated over one-third of its returns from discount narrowing.
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Past performance should not be seen as an indication of future performance. The value of your investment may go down as well as up and you may not get back the full amount invested. Issued by Asset Value Investors Ltd who are authorised and regulated by the Financial Conduct Authority.