A unique investment
philosophy

Overview

Key facts

Total assets:
£1.1 billion*
Launch Date:
1 July 1889

Average Annual Return:
11.6%**
Ongoing charges ratio:
0.89%***

* As at 31 October 2023
** Source: Morningstar, performance period 30 June 1985 to 31 October 2023, TR net of fees, GBP
*** As at 30 September 2020, includes: management fee 0.70%, marketing and administration costs

Key Statistics

Share price:
207.5 p
Premium(+) / discount(-):
-9.3%

NAV:
228.7 p / share
Dividend Yield:
1.7%
As of 08/12/2023, Currency: Pound Sterling

About the Trust

What is AVI Global Trust?

If you’re not familiar with us, here’s a video that’ll help. This video is presented by Joe Bauernfreund, CEO and Chief Investment Officer at Asset Value Investors.

AVI Global Trust (“AGT”) provides expertly managed exposure to the opportunities presented in various parts of the world. The investment strategy identifies valuation anomalies to create a concentrated, unique and diversified portfolio of stocks. The investment manager then engages with these companies to improve shareholder value.

 

 

  • AVI Global Trust Share Price Total Return
  • MSCI AC World ex-US Total Return
  • AVI Global Trust NAV Total Return

Look-through Geographic Exposure

  • 28%
    North America
  • 3%
    United Kingdom
  • 34%
    Europe
  • 11%
    Asia
  • 17%
    Japan
  • 6%
    Latin America, Africa & Emerging Europe
  • 1%
    Oceania
Based on location of companies’ underlying assets,rather than country of listing. As of October 2023.

Equity Portfolio Value by Market Capitalisation

Label 2022 % 2021 %
< £1 billion 29 25
> £1 billion - < £5 billion 30 28
> £5 billion - < £10 billion 11 11
> £10 billion 30 36
As of 30 September 2022

Portfolio Value by Sector

Label 2022 % 2021 %
Holding Companies 47 43
Asset-backed Special Situations 21 30
Closed-ended funds 32 27
As of 30 September 2022
31/10/2023 % of NAV
Schibsted ASA ‘B’ 8.1%
Oakley Capital Investments 7.4%
Aker ASA 6.2%
FEMSA 6.1%
Princess Private Equity 6.1%
Pantheon International 5.3%
KKR 5.1%
Brookfield Corporation 5.1%
Hipgnosis Songs Fund 4.9%
Apollo Global 4.7%
Total 59.0%
Global Equities
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AGT
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History

The AVI Global Trust plc (“AGT”) was established in 1889 in order to generate profits for its shareholders by investing in the shares of other companies. In 1985, Asset Value Investors (“AVI”) were appointed as investment managers of AGT, which at that point held a total of £6 million in assets under management. As at 31 August 2020, total assets under management of AGT stand at over £979 million.

Read more

Asset Value Investors (“AVI”) value investment process for AVI Global emphasizes bottom up fundamental research, using both quantitative and qualitative techniques.

Screening of the Universe

AVI’s screening process starts by looking at an investment universe which consists of global holding companies, closed-end funds and asset backed companies. We have detailed models on approximately 415 companies out of this universe, which track stock prices and earnings information.

Filtering

Throughout the filtering process AVI asks the following questions:

  • Is the stock trading at the wider end of its discount range
  • Are we comfortable with the NAV
  • Do we like the valuations
  • Do we want to own the underlying businesses
  • Does the business have a strong balance sheet
  • Is the company headed by an honest, intelligent management team with a good track record and willing to engage with shareholders
  • Can we see a catalyst to bring the share price back to its true value
  • Is the political and economic environment amenable

 

Portfolio Monitoring

Research

AVI’s analysts track stock prices, earnings and balance sheet information with an aim to identify good quality companies trading on a discount to their NAV which exhibit clear trends to create long-term value.

Research includes:

  • In-depth analysis of company annual reports and filings
  • Consulting with industry contacts and brokers
  • Bottom-up analysis of a company’s fundamentals, management and industry trends
  • Specific focus on identifying the catalyst which will reduce the discount and unlock value
  • Regular meetings with top level management

 

Sizing

We want to have a reasonably concentrated portfolio (typically 30-40 stocks) of our best ideas

Portfolio Construction

The objective of AVI’s portfolio construction process is to end up with a concentrated portfolio of about 40-50 holdings, facilitating a clear monitoring process of the entire portfolio. AVI picks stocks that meet our investment criteria and once we decide to invest we seek a minimum position size of approximately 2% of the portfolio, however the timing of the catalyst and the liquidity of the stock can result in the holding being greater or lesser than 2%.

The investment philosophy employed by Asset Value Investors (“AVI”), the managers of AVI Global, strives to identify valuation anomalies and focuses on investing where the market price does not reflect the estimated intrinsic value.

We look for:

  • Discounts To Underlying Value
    We seek to find anomalous valuations and to invest in companies and funds trading on a discount to their net asset value
  • The Purchase Of Assets That Are Of High Intrinsic Quality
    Identifying good quality underlying asset with appreciation potential at compelling values
  • Economic Value
    The underlying assets must be seen to offer appreciation/growth potential which could be based on a number of events or catalysts including potential corporate activity or a turn in market sentiment towards a company etc

Asset Value Investors (“AVI”) deep value investment process strives to identify and mitigate downside risks in all market environments.

We seek to construct a discounted portfolio of stocks consisting of companies which due to the geographic and sector diversification of their underlying assets are less likely to display high correlations to the market.

AVI’s risk management techniques include thorough qualitative fundamental bottom up research to establish a company’s real value. We monitor our holdings on an on-going basis and our in-house OMS system contains an automatic alert system which alerts us of any breaches of built-in risk parameters.

The investment management team holds regular meetings discussing the portfolio with a view to reassess, sell or buy securities and to discuss current cash position as well as sector and geographic weighting.

 

Exclusion list

Exclusionary screening is not our guiding framework, however there are certain exceptions to this. AVI will not invest in a company with direct involvement* in:

  • Tobacco
  • Controversial Weapons
  • Pornography

Or companies that engage in child labour or human exploitation as defined by the relevant ILO conventions.

* whereby more than 5% of that company’s NAV is derived from these activities.

ESG risks and opportunities

As part of our in-depth research into companies, we consider and discuss material ESG risks and opportunities, including climate-related risks and opportunities. Supported by ISS Norms-based research, we also assess any involvement in actual or potential violations of international norms and standards.

Bespoke ESG monitoring system

We have developed a bespoke ESG monitoring system built into our proprietary database to ensure ESG factors are considered alongside financial analysis. We conduct ongoing ESG assessments of portfolio companies’ performance against defined ESG metrics. A scoring system is used to assess trends and highlight potential areas for engagement.

Tailored questionnaires

Based on our assessments, we send tailored questionnaires to all portfolio companies to request additional ESG information and promote improved sustainability disclosure. This can provide a useful starting point for deeper engagement on ESG issues.

Ongoing controversy monitoring

Controversies can bring major reputational damage and a loss of consumer trust which can have a significant effect on a company’s value. We promote responsible conduct by actively engaging and encouraging our companies to strengthen their focus on ESG issues.

Constructive engagement

We seek to build constructive relationships with the boards and management of our portfolio companies, offering detailed suggestions to sustainably increase corporate value by building resilience to ESG risks and promoting responsible business practices.

 

Investor Information

Monthly Newsletter

Responsible Investing

We are fundamentally committed to supporting long-term sustainable businesses that will grow and participate in the prosperity of the economy with a responsible approach to the environment, society, and governance. We believe that the integration of ESG and sustainability considerations into our investment strategy is not only integral to comprehensively understanding each investment’s ability to create long term value but aligned with our values as responsible investors.

16 Jan, 2023

E – DTS formally commits to having its environmental targets validated through the Science Based Targets Initiative (SBTi)

12 Oct, 2022

E – TSI Holdings commits to setting a science-based target through SBT Initiative

23 Jun, 2022

S,G – DTS improves board diversity, appointing two female directors

AVI has developed a proprietary ESG monitoring system that allows us to track the extent to which our portfolio companies are effectively managing ESG issues and their progress against defined ESG metrics. This process helps to highlight trends and identify weaknesses where we can engage constructively with companies to build resilience to ESG risks and promote responsible business practices.


AVI became a signatory to the UN-supported Principles for Responsible Investment (PRI) on 09 April 2021.

We are aligned with the PRI’s belief that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole.

View AVI’s Full ESG Policy

View AVI’s Stewardship & Voting Policy

We consider proxy voting to be an important lever in engaging with our portfolio companies and ensuring that our perspectives on environmental, social and governance issues are represented.

As responsible, active stewards of our clients’ capital, we have a duty to vote carefully and thoughtfully on their behalf, and we take this duty seriously. We aim to vote at every general meeting for which we are eligible.

AGT 2022 Proxy Voting Record

AGT 2021 Proxy Voting Record


    *AVI made the decision not to vote at three company meetings (7% of votes) as it had sold its stake in these companies

View AVI’s Stewardship & Voting Policy

Investing in the Trust

Investment Platforms

AVI Global Trust plc (“AVI Global”) is a closed-end investment trust with shares listed on the London Stock Exchange and part of the FTSE 250 index. Shares in AVI Global can be bought directly on the London Stock Exchange or through the following platforms:

What are investment companies

  • An investment trust is a public listed company. It’s designed to generate profits for its shareholders by investing in the shares of other companies.
  • Shares in investment trusts are traded on the London Stock Exchange.
  • Investment trusts are closed-ended which means they have a fixed number of shares. The investment manager can invest and sell assets when they feel the time is right, not when investors join and leave a fund.
  • Gearing – investment trusts can borrow money to take advantage of investment opportunities. Gearing can increase the returns for shareholders, but if assets fall there is also an increase in potential losses. Not all investment companies use gearing and AVI Global Trust plc (“AVI Global”) only utilises gearing at very moderate levels.
  • Independent board. Every investment trust has an independent board of directors who are there to provide overall governance and who are responsible to set the dividends paid, ensure the investment manager is adhering to their remit and generally for the safeguarding of shareholders’ interests.
  • Investment management company. The independent board chooses a professional fund manager to run the investment trust’s portfolio. Asset Value Investors (“AVI”) have been the investment manager for AVI Global since 1985, providing their skill and expertise to help maximise the investment trust’s investments and achieve long-term outperformance.
  • When an investor buys shares in an investment trust they become a shareholder. Shareholders have voting rights on issues such as appointment of directors and changes to the investment policy. Annual general meetings are held to which all shareholders are invited and where questions and issues are addressed.

Discounts and Premiums

There are two ways that the value of a share in an investment trust is often expressed:

  • The share price which is the price at which investors buy and sell shares on the stock exchange.
  • The net asset value per share (NAV). The NAV of a share is the value of all of the investment company’s assets less any liabilities, divided by the number of shares. Shares of an investment trust are traded on the London Stock Exchange and the share price may be higher (at a “premium”) or lower (at a “discount”) than the NAV

It’s the role of the asset management company, AVI ,appointed by AVI Global to plan, manage the assets and oversee the investments on behalf of investment trust.

What’s the advantage of investment trusts?

  • It allows you to ‘pool’ your money with others’, giving you access to stock market returns on a much larger scale than you might be able to achieve on your own
  • It spreads your risk; investment trusts own a range of shares, so you’re not tied to the fortunes of just one or two companies
  • You get the benefit of having your investment overseen by professional asset managers with many years’ experience
  • You can enjoy stock market returns from a relatively small investment
  • Unconstrained

AGT’s index agnostic approach allows for investments to be made in areas of the market that are often overlooked by other funds, typically due to their unconventional structures, size, or liquidity. These areas can include listed family holding companies and private equity, which over time, have been shown to deliver excess returns.

  • Unique & Diversified 

AGT’s unique approach of investing in holding companies, closed-ended funds and asset-backed special situations differentiates us from other funds, with portfolio holdings unlikely to be found elsewhere. Through these unconventional structures, AGT gains exposure to multiple underlying companies, providing both sector and geographic diversification benefits.

  • Track Record of Outperformance

Through an unconstrained and unique investment philosophy, AGT has been able to outperform its comparator benchmark over the long run. Since 1985, AGT’s average annual performance has been 11.5% vs 9.0% for the benchmark

  • Dividend payments

(View chart below) Over the past ten years, the ordinary dividends paid by AGT to shareholders have grown by more than 6.5 times. The level of income may vary due to the occasional receipt of large, one-off, special dividends from investee companies and it is for this reason that AGT has paid special dividends in the past few years. Naturally, there can be no guarantee that further special dividends will be paid in the future.

* as at 30 September 2022.

Dividend Growth

  • The closed-ended structure of the investment trust means that whenever you want to buy or sell you can simply do so on the stock market without it having any impact on the underlying portfolio. Open-ended fund subscriptions and redemptions have an immediate effect on how the manager has to manage the portfolio to meet these requests.
  • Shares are bought and sold on the stock market which can be done directly through a stockbroker or also on a number of platforms.

How Are Investment Trusts Regulated?

They are quoted companies listed on the London Stock Exchange with Boards of Directors; they are subject to the listing rules of the UK Listing Authority established under the Financial Services and Markets Act. ‘Investment Trusts’ are also subject to the Companies Act 1985, as amended. The conduct of investment managers in promoting packaged products (‘ISA’, Share Plans) with underlying investment trust investments are regulated by the FCA.

What Does Gearing Mean?

Investment trusts can borrow money and invest the proceeds. This will magnify returns to investors in a rising market (and vice versa in falling markets). This is known as financial gearing. Typically the ‘gearing’ is described as a ratio (of borrowing to assets) – a gearing factor of 120 means that on a trust with equity of £100 million it has £20 million of debt (bank borrowings).

How Many Investments Are Held Within An Investment Trust Portfolio And How Are They Managed?

Typically anything from 50 to 100 shares. The ‘Fund Manager’ must have regard to the objective of the trust. To that end the underlying stocks are bought or sold to deliver either capital growth or income. Within those portfolios the managers will assess the stocks on a regular basis to ensure that they will deliver the objective, hopefully selling in advance of profit warnings or any other adverse market change that could impact on either the ability to deliver income or capital appreciation. Sometimes that can’t be achieved; that’s why ‘investment trusts’ have a spread of investments.

What Is The Spread For An Investment Trust And Who Actually Sets This, Also What Is The Standard Spread? And Does This Spread Include The Government Stamp Duty Or Not?

The spread is set by the marketmakers. There is no standard spread, it depends on the ‘liquidity’ of a particular stock, but in the case of AVI Global the average spread is 0.22% *. It does not include stamp duty which is a tax at 0.5% of the value of all share purchases.

* as at 28th February 2015

The Yields As Quoted In The Financial Times, Which Are The Standard Quoted On Advertisements, How Do They Actually Calculate Them?

The dividend yield is the last 12 months dividends (historic) divided by the share price.

Is The Discount/ Premium Of A Share Calculated On The Shares, Mid Price/Bid Price/ Or Offer Price?

All are calculated with reference to the previous closing mid price.

What Service Does The Company Secretary Perform For An Investment Trust?

The company secretary has the responsibility for co-ordinating all aspects of the investment trust to ensure that it complies with its legal and financial reporting including any circulars etc., report and accounts, interim reports; convening board meetings, minutes and follow up there from, as well as liaison with the Board and external advisers.

What Service Does The Board Of Directors For A Trust Perform?

The Board is responsible to shareholders; it oversees the external relationships, principally the fund management relationship, to ensure that the trust’s objective is met.

What Role Do The Registrars Perform?

Under the Companies Act all public companies must maintain a register of their shareholders to record title to the security; to determine entitlement to dividends or capital distributions.

Please choose:
Disclaimer

This website is directed only at Professional Clients and Self-Certified Sophisticated Investors as defined by the UK Financial Conduct Authority (“FCA”).

The contents of this website are communicated by Asset Value Investors Limited (“AVI”) in respect of AVI Global Trust plc ( the “Company”).  AVI is authorised and regulated by the FCA, with registered number 01881101 and which has its registered office at 2 Cavendish Square, London W1G 0PU, United Kingdom.

Nothing in this website is to be taken as a financial promotion and all contents are provided for information purposes only.  Further, nothing in this website is to be taken as investment or tax advice.  If you are unclear about any of the information on this website or its suitability for you, you must contact your financial or tax adviser, or an independent financial or tax adviser before making any investment or financial decisions.

The price of the Shares will be determined by supply and demand in the market as well as NAV per Share. The market price of the Shares is therefore likely to fluctuate and may represent either a premium or discount to NAV per Share.

General risk warning:  All investment is subject to risk. The value of the Shares may go down as well as go up. Past performance is no guarantee of future returns and there is no guarantee that the market price of the Shares will fully reflect their underlying net asset value. There is also no guarantee that the Company’s investment objective will be achieved.

The information contained in this website may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement. Actual results may differ materially from those expressed or implied by any forward-looking statement.  You should not place undue reliance on any forward-looking statement.

Neither the Company nor AVI undertakes any obligation to update or revise any information in this website, including without limitation, any forward-looking statements, whether as a result of new information, future events or otherwise, and neither the Company nor AVI will confirm the accuracy or completeness of any information at any given time.

This website may contain links to third party websites. These links are provided for your information and convenience only, and do not amount to a recommendation or endorsement by the Company or AVI of that third party or its website. Neither the Company nor AVI has any control over the content of any third party website and neither the Company nor AVI has verified the accuracy of any content on any third party website. Accordingly, neither the Company nor AVI is liable for the content or availability (or lack of availability) of such third party websites.

This website is provided for your use “as is” without any warranties (whether express or implied) of any kind including, but not limited to, the warranty of non-infringement of third party rights or freedom from computer virus. As a result, neither the Company nor AVI accepts any ongoing obligation or responsibility in respect of any errors, omissions, interruptions or delays in service which may occur. Internet is not a secure medium of communication unless the data being sent is encrypted. Neither the Company nor AVI accepts any responsibility for unauthorised access by a third party or the corruption of data sent to it.

By continuing to use this website, you agree to the exclusion by the Company and AVI, to the extent permitted by applicable law and regulation, of any and all liability for any direct, indirect, punitive, consequential, incidental, special or other damages, or any loss of profits, revenue or data arising out of or relating to your use of and our provision of this website and its content. The Company may change these terms and conditions from time to time and any such changes will be posted on this website. Your access to this website is governed by the version of these terms and conditions then in force.

THIS WEBSITE IS NOT INTENDED TO OFFER OR TO PROMOTE THE OFFER OR SALE OF THE SHARES (THE “SHARES”) OF AVI JAPAN OPPORTUNITY TRUST PLC (THE “COMPANY”) IN THE UNITED STATES OR TO ANY “U.S. PERSONS” AS DEFINED IN REGULATION S (“US PERSONS”) UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).

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The Company has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act“), and as such holders of the Shares are not and will not be entitled to the benefits of the Investment Company Act. The Shares have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, delivered, assigned or otherwise transferred, directly or indirectly, into or within the United States or to, or for the account or benefit of, any US Persons. There has not been and there will not be a public offer of the Shares in the United States. Potential users of the information contained in this website are requested to inform themselves about and to observe all applicable restrictions.

The information contained in this website does not constitute or form a part of any offer to sell or issue, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities in the United States or in any jurisdiction in which, or to any person to whom, such an offer or solicitation would be unlawful.

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