AVI Global Trust (AGT) H2 2023 earnings summary

Executive summary

• NAV total return was 15.3% for FY2023, ahead of the MSCI AC World Index at 10.5% and MSCI AC World ex-US at 10.1%.

• Share-price total return was 14.8%; NAV per share ended at 226.77p, versus 199.76p in 2022.

• Returns were driven by stock selection, especially Apollo, FEMSA, Schibsted and KKR; portfolio discounts and active engagement remained central to the investment approach.

Financial highlights

• Investment income was £24.45m, up from £23.10m; revenue earnings were 4.19p per share and capital earnings were 23.83p, versus a 25.30p loss in 2022.

• Total earnings were 28.02p per share, versus a 22.06p loss in 2022; total ordinary dividend rose 6% to 3.5p, with a proposed 0.2p special dividend.

• Revenue included one-off tax refunds and interest on cash; the final ordinary dividend proposed was 2.3p per share.

Outlook and guidance

• Near-term conditions remain uncertain amid persistent inflation, higher-for-longer interest rates and potential delayed effects from monetary tightening; the investment manager remained cautiously optimistic on long-term returns.

• Portfolio-weighted discounts were 37% at 31 October 2023, near levels seen in the global financial crisis and Eurozone crisis; management identified opportunities across its investment universe.

• Investment approach remains bottom-up, focused on stock selection, active engagement and explicit catalysts to unlock value.