AVI Global Trust PLC GBP · LSE:AGT
AVI Global Trust PLC GBP — AVI Global Trust — Shareholder Meeting (December 2020)
15 slides from AVI Global Trust PLC GBP's shareholder meeting presentation, December 2020
Slide 1: Important information
Important information • Asset Value Investors Limited (“AVI”) is authorised and regulated by the UK Financial Conduct Authority and is registered as an Investment Advisor with the Securities and Exchange Commission. This publication is issued by AVI. • This publication is not a financial promotion,
Slide 2: Annual General Meeting 2020
Ao AV| GLOBAL TRUST Annual General Meeting 2020 >
Slide 3: Performance in FY20
Performance in FY20 AGT MSCI ACWI ex-US 1 First-Half 2020 -24.7% -17.0% 1 Second-Half 2020 32.9% 18.3% 1 Full Year 0.0% -1.8% 120 -30% 110 -32% 100 -34% 90 -36% 80 -38% 70 -40% 60 -42% 50 -44% 40 -46% Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 AGT port
Slide 4: What We've Been Doing
What We’ve Been Doing AVI Global Trust - Net Gearing2 • Leading into the crisis AGT had reduced gearing 12% • Coupled with active portfolio management, this 10% gave us freedom to take advantage of the set back 8% in markets, improving the quality of the portfolio • Turnover in FY20 was 39.5% (FY19:
Slide 5: What We've Been Doing: Net Consideration
What We’ve Been Doing • We added to our highest conviction ideas and built positions in new names by re-applying gearing and recycling capital from asset sales Sells Buys Jardine Riverstone TBS Pargesa Wendel Cosan Strategic Energy Kinnevik Prosus KKR Christian Dior Softbank VNV Global 40 28.4 30 Ne
Slide 6: AVI Global Trust Investment Themes
AVI Global Trust Investment Themes Quality Category Japanese Corporate Digitally-Enabled Growth Cyclical Recovery Leaders Governance 1 1 1 1 1 1 1 Source: AVI (at 30/09/2020). Note: 1. Direct Holding 5
Slide 7: AGT Lookthrough Portfolio Repositioning
AGT Lookthrough Portfolio Repositioning 30th September 2019 30th September 2020 Underlying Asset % NAV Holding Company Underlying Asset % NAV Holding Company Swire Properties 2.9% Swire Pacific Ltd 'B' Alibaba 5.7% New Softbank 1 doValue 2.3% Eurocastle Tencent 3.9% New Prosus / Naspers Minor Intern
Slide 8: AGT Contributors & Detractors in FY20
AGT Contributors & Detractors in FY20 Contribution to Overall Fund Return -2.4% Symphony International -2.1% Jardine Strategic -1.7% Swire Pacific -1.6% Riverstone Energy -1.2% Wendel 0.6% Cosan Ltd. 0.6% Fondul Proprietatea 0.7% Investor AB 0.9% Oakley Capital 0.9% KKR 1.2% Sony 1.7% Softbank 2.0%
Slide 9: Increased Position: Kinnevik (4.7% of NAV)
Increased Position: Kinnevik (4.7% of NAV) Kinnevik - Discount & Share Price2 • Increased position by 28% from 17-Apr to 31-Aug, ROI 20% € 450 € 400 to date of 72% (GBP) 10% Added to position 17/04 € 350 0% € 300 • Swedish-listed holding company, with record of strong -10% € 250 returns – 10 year TS
Slide 10: New Position: Prosus (4.4% of NAV)
New Position: Prosus (4.4% of NAV1) Prosus Discount • Bought in on 06-May, ROI to date of 9% (GBP) -15% • Attractive way to gain exposure to explosive Tencent -25% growth at a heavily discounted valuation -35% • Recent announcement of buybacks across the Prosus/Naspers structure highlight extreme di
Slide 11: New Position: Christian Dior (2.7% of NAV)
New Position: Christian Dior (2.7% of NAV) • Bought in on 24-Mar, ROI to date of 2% (GBP) LVMH Sales & EBIT Breakdown (2019) 70% • Exposure to LVMH unique mega brands with strong 60% growth characteristics, attractive margins and returns on 50% capital 40% 30% • Sell off led to dislocation in CDI’s
Slide 12: Key Idea: Fujitec (2.9% of NAV)
Key Idea: Fujitec (2.9% of NAV) • AVI’s approach to shareholder activism in Japan is showing signs of success Taking Fujitec to the Next Level What’s Next? • AVI have been shareholders in Fujitec since July 2018 • AVI have been in dialogue with Fujitec since our campaign began • We published recomme
Slide 13: AVI Global Trust Portfolio Holdings
AVI Global Trust Portfolio Holdings Name % NAV Discount Name % NAV Discount 1 Japan Special Situations 18.9% -39% Tetragon Financial 2.7% -62% Pershing Square Holdings 9.7% -30% VNV Global 2.8% -13% Oakley Capital Investments 8.1% -29% doValue 2.5% -47% SoftBank Group 7.6% -56% Aker ASA 2.3% -9% Son
Slide 14: Summary
Summary • AGT invests in high quality, world-class businesses trading on wide discounts to NAV due to their complex, misunderstood and mispriced ownership structures • In early 2020 AGT shifted exposure towards higher quality companies with greater liquidity • Resulting in very strong performance si
Slide 15: Thank you
Thank you We welcome questions at AGM@aviglobal.co.uk 14
AVI Global Trust — Shareholder Meeting (December 2020) on 6ix