LONDON, UK: abrdn Diversified Income and Growth plc (ADIG), an investment trust that invests in a globally diversified multi-asset portfolio, has announced that it has started a strategic review to consider how it can best deliver value to shareholders.
The company, which was formerly known as Aberdeen Diversified Income and Growth Trust, said on Tuesday that it will consult with shareholders and explore all options, including a possible merger with another investment trust.
The move comes as the company’s shares have traded at a significant discount to their net asset value (NAV) for a long time, despite delivering a NAV total return of 19.6 per cent in the period from September 2020 to 31 March 2023, including dividends of 13.96p.
The company said it has implemented several initiatives to narrow the discount, such as share buybacks, but noted that the gap remains wide. It also said that the discount limits its ability to grow and access attractive investments.
The company’s investment strategy, which was refreshed and refocused in 2020, seeks to provide income and capital appreciation over the long term by investing in a range of assets, such as equities, bonds, property, infrastructure and private markets. The company is managed by Nalaka De Silva and his team at abrdn plc, the asset management group formerly known as Standard Life Aberdeen.
Davina Walter, Chairman of the company, said:
“While the Board is encouraged by the management of the Company’s portfolio, the Company’s shares continue to trade at a persistently deep discount to net asset value. It is the Board’s view therefore that a strategic review of the Company is required to consider how we can best optimise value for shareholders. As part of this exercise, we will consider all options, including, but not limited to, a combination with an existing investment trust. Our focus will now be on seeking feedback from shareholders, commencing productive discussions with relevant parties and updating the market on the outcome of the review in due course.”
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