AVI Global Shares Edged 0.79% Lower on Annual Trading Update

The AVI Global Trust PLC (LON: AGT) share price edged 0.79% lower after releasing its year-end earnings report for the financial year ended 30 September 2023. The company reported robust financial performance and impressive shareholder returns, outperforming key benchmarks. 

AGT delivered exceptional total returns to investors, with Net Asset Value (NAV) and share price returns of 15.3% and 14.8%, respectively. These returns comfortably exceeded its comparator benchmarks, the MSCI All Country World Index and the MSCI All Country World ex-US Index, which posted returns of 10.5% and 10.1%, all in sterling terms.

We achieved revenue earnings of 4.19 pence per share for the year. AGT distributed an interim dividend of 1.2 pence per share at half-year, consistent with the previous year. The board now proposes a final dividend of 2.3 pence per share.

AGT successfully issued Japanese Yen (JPY) 4.5 billion fixed-rate unsecured debt with a ten-year term at an annual interest rate of 1.44% on July 25, 2023. This issuance, denominated in JPY, was equivalent to approximately £25 million at the time of issuance. 

AGT has strategically utilized debt issuance with attractive interest rates to seize investment opportunities. As of September 30, 2023, net gearing, with debt at fair value, stood at 7.4%. 

AGT recognises the importance of marketing efforts to engage investors. Therefore, the trust has a substantial marketing budget and collaborates closely with the manager to generate demand for its shares.

Despite its robust performance, AGT shares have persistently traded at a discount, which stood at 10.9% at the end of September 2023. The board actively employs share buybacks when the discount widens significantly and when it deems it to be in the best interests of shareholders. 

Like many trusts, AGT has been affected by regulatory changes related to Consumer Duty. Some online investment platforms have begun assessing the cost of investing in companies like AGT by including the underlying charges of any funds held in their portfolios of investments in their assessment of the costs of investing in the company. 

AGT's board believes this approach is misleading, as the costs within the underlying investments are already factored into assessing the fair value of those investments.

AVI Global Trust (AGT) share price. 

The AVI Global Trust (AGT) share price edged 0.79% lower to trade at 200.2p from Thursday’s closing price of 201.8p.