AVI Japan Opportunity Trust Plc · LSE:AJOT
AVI Japan Opportunity Trust — AVI Global Trust — Shareholder Meeting (December 2024)
30 slides from AVI Japan Opportunity Trust's shareholder meeting presentation, December 2024
Slide 1: Annual General Meeting December 2024
Annual General Meeting December 2024
Slide 2: AGT FY24 Performance Review
AGT FY24 Performance Review Annualised MSCI All Country World MSCI All Country Performance to 30th AGT Index (Comparator World Index ex-USA September 2024 (£) Benchmark) 1 Year 13.7% 19.9% 14.1% 3 Year 6.7% 8.3% 4.3% 5 Year 10.6% 10.3% 5.8% 7 Year 9.3% 10.2% 5.4% 10 Year 10.2% 11.5% 7.2% 30th Sep 20
Slide 3: Another Year of Strong Global Performance
Another Year of Strong Global Performance Return of Indices since 30th September 2023 42.3% 43.2% 36.7% 37.5% 33.6% 28.3% 17.6% 17.9% 17.9% 18.1% 15.9% 12.9% 13.4% 11.3% MSCI Europe MSCI Japan FTSE 250 MSCI All Country World MSCI All Country S&P 500 NASDAQ Index ex-USA World Index GBP Local GBP Loca
Slide 4: Index Returns Driven by a Few Names
Index Returns Driven by a Few Names Total Return of Magnificent-7 Index vs. S&P 500 and MSCI ACWI 190 180 +78% 170 160 150 +42% 140 +35% +34% 130 120 +19% 110 100 90 80 70 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Magnificent 7 S&P 500 MSCI ACWI MSCI ACWI ex-US S&P 500 ex-Mag-7 Source:
Slide 5: An Increasingly Expensive & Concentrated Market
An Increasingly Expensive & Concentrated Market S&P 500 Forward PE Ratio1 Top 10 S&P 500 Stocks % of 35 Total Index Market Cap2 36% 30 30 Nov 2024: 25.6x 25 25% +1 Std. dev.: 21.9x 20 20% Average Since 1990: 18.1x 15 -1 Std. dev.: 14.3x 10 5 1990 1995 2000 2005 2010 2015 2020 Current 45-Year Average
Slide 6: AVI's Universe: A Rich Opportunity Set…
AVI’s Universe: A Rich Opportunity Set… AGT Portfolio Weighted Average Discount Universe Discounts 0% -10% -20% -21% -24% -30% -33% -34% -35% -37% -40% -39% -39% -40% Discounts in 2024 remained around the levels of the GFC Alternative Fund Hold Cos Japan Sector Long-term Average Sep-23 Sep-24 -50% 2
Slide 7: ..That Delivers Long-term Outperformance
..That Delivers Long-term Outperformance 9,000 8,000 +8,030% 7,000 6,000 5,000 +11.6% CAGR1 since 1985 vs. +9.6% for MSCI ACWI 4,000 +8.1% for MSCI ACWI ex US +3,653% 3,000 2,000 +2,132% 1,000 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 AGT M
Slide 8: Our Idiosyncratic, Best-ideas Approach
Our Idiosyncratic, Best-ideas Approach Key Exits LTM Key Investments LTM 10.6% 8.5% 8.3% 8.6% 7.0% 6.0% 6.2% High-conviction, catalyst-focused portfolio rotation 4.0% 3.5% KKR KKR Hipgnosis Hipgnosis Schibsted Schibsted Apollo Apollo D’Ieteren D'Ieteren 2 News Corp News Corp Chrysalis Investments Ch
Slide 9: Well-Positioned for the Next Twelve Months
Well-Positioned for the Next Twelve Months Holding Companies Closed-ended Funds Japan 50% of Portfolio 31% of Portfolio 19% of portfolio 1. Asset Quality 1. Historically-wide Discounts 1. Corporate Governance Reform — Durable growing businesses — Valuation uncertainty; structural lack of — Companies
Slide 10: D'Ieteren
D’Ieteren 260 D’Ieteren Price (EUR) 7.7% of NAV Special Dividend Announced 240 - September 2024 announcement Increased position +71% of extraordinary dividend of €74 220 a share, equating to 37% of current market cap 200 180 - Increased position by +71% f ollowing adverse market Shares +35% from ex-
Slide 11: News Corp
News Corp NAV Breakdown 1 8.6% of NAV - US listed holding company 44% controlled by the Murdoch f amily Discount - Home to a collection of attractive quality assets that are both misunderstood and misvalued by the market - Listed stake in REA Group accounts f or 80% of market cap - Management are ac
Slide 12: Chrysalis Investments
Chrysalis Discount Change Since Inception 1 Investments 40% 6.2% of NAV 20% - London-listed closed-end f und investing in late-stage growth 0% equities trading at a 41% discount to written -down NAV -20% - NAV down -42% and share price -40% down -65% f rom 2021 peak - 89% of market cap covered by -6
Slide 13: Rohto Pharmaceutical
Rohto Evolution of Rohto’s Business Portfolio (Sales by Business Ybn) Pharmaceutical 3,000 3.8% of NAV Kunio Yamada Masashi Sugimoto Other becomes chairman becomes CEO Toshiaki Yoshino Supplements - Rohto Pharmaceutical is the 2,000 becomes CEO largest skin-care and eye-drop Kunio Yamada becomes CEO
Slide 14: Outlook
Outlook 1. Portfolio top-ten concentration elevated at 57% to exploit high conviction idiosyncratic opportunities 2. Following exit of Apollo and receipt of D’Ieteren dividend, AGT’s gearing now at a reduced c. 2% level, with flexibility to take advantage of our opportunity set 3. A number of names
Slide 15: Performance Since Year End
Performance Since Year End Performance FYTD 8.4% - NAV up +4.7% FYTD - £61m sale of Apollo and receipt of £27m D’Ieteren dividend reduces gearing to c.2% 4.7% - Financial flexibility for new and existing ideas - Portfolio weighted average discount at 37.0% 0.9% AGT MSCI AC World MSCI ACWI exUS Sourc
Slide 16: AVI Global Trust Portfolio Holdings
AVI Global Trust Portfolio Holdings Name % NAV Discount Name % NAV Discount News Corp A 8.6% -45% Christian Dior SE 2.7% -20% Dieteren 7.7% -53% Toyota Industries 2.7% -48% Chrysalis Investments 6.2% -33% Dai Nippon Printing 2.5% -49% 1 Softbank Group 5.6% -61% GCP Infrastructure 2.3% -33% Oakley Ca
Slide 17: Thanks for listening, any questions?
Thanks for listening, any questions? Please submit any further questions to AGM@aviglobal.co.uk 16
Slide 18: AVI Global Trust
AVI GLOBAL TRUST
Slide 19: AGM Resolutions 2024
AGM Resolutions 2024 1 Receive the Annual Report and Financial Statements 2 Approve a Final Ordinary Dividend of 2.55p per Ordinary Share 3 Re-elect Anja Balfour as a Director of the Company 4 Re-elect Neil Galloway as a Director of the Company 5 Re-elect June Jessop as a Director of the Company 6 R
Slide 20: Proxy Voting Results 2024
Proxy Voting Results 2024 Resolution For Discretion Against Withheld 1 Receive the Annual Report and Financial Statements 118,779,660 82,585 31,371 113,031 2 Approve a Final Ordinary Dividend of 2.55p per Ordinary Share 118,795,822 82,585 32,871 95,369 3 Re-elect Anja Balfour as a Director of the Co
Slide 21: AVI Global Trust
AVI GLOBAL TRUST
Slide 22: Appendix
AVI GLOBAL TRUST Appendix
Slide 23: FY24 Top Contributors
FY24 Top Contributors Current Price TR NAV TR Discount Discount FY24 Weight % on Position1 on Position1 Start2 End3 Contribution Third Point Investors 0.0% +41% +20% -27% -8%4 +2.5% 0.0% +38% -40% -50% +135 +2.5% 0.0% +26% +8% -34% +1%6 +1.9% 0.0% +29% +5% -30% -12% +1.3% KKR 4.4% +31% -2% -40%7 -27
Slide 24: FY24 Top Detractors
FY24 Top Detractors Current Price TR NAV TR Discount Discount FY24 Weight % on Position1 on Position1 Start2 End3 Contribution Third Point Investors 1.8% -35% -2% -36% -57% -1.3% 3.8% -11% -10% -24% -26% -1.1% 3.0% -4% -4% -28% -29% -0.7% 0.0% -24% -9% -37%4 -42%5 -0.5% KKR 2.7% -12% -9% -43%6 -45%
Slide 25: Gearing Flexibility
Gearing Flexibility AGT Net Gearing1 11% 10% 10% 9% 9% 9% 9% 8% 9% 8% 8% 8% 7% 7% 8% 8% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 6% 6% 6% 6% 5% 4% 5% 4% 4% 4% 4% 4% 3% 3% 3% 3% 2% 2% 1% 1% 0% 0% 1% 0% 0% 0% 0% -1% -5% -5% May 20 Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22 Nov 22 Feb 23 May 2
Slide 26: FY24 Portfolio Changes
FY24 Portfolio Changes 1 Key Weight Increases Key Weight Decreases 8.2% 8.6% 8.2% 7.5% 6.8% 5.9% 5.2% 4.9% 4.9% 5.2% 5.1% 3.9% 4.0% 3.5% Dieteren News Corp - Chrysalis Softbank Group Cordiant Digital Rohto Schibsted B Hipgnosis KKR Pantheon Brookfield Pershing USD 'A' Investments Infrastructure Phar
Slide 27: Our Philosophy & Edge
Our Philosophy & Edge AVI looks for three things... Asset Value Investing Durable Trading at With an active businesses that discounted approach to unlock are growing in valuations and grow value value Specialists in Understanding of Constructive SOTP analysis discount cycles engagement “It’s not as
Slide 28: AVI's Approach to ESG
AVI’s Approach We seek to drive positive change through to ESG active engagement - A responsible approach to the — Regular dialogue with boards and management to promote specific environment, society and governance is key to the long - ESG-related improvements term sustainabilit y of our CONSTRUCTIV
Slide 29: AVI Investment Team
AVI Investment Team Scott Beveridge Senior Analyst Esme Morter Property Specialist & Asian ESG Analyst Holding Companies Joined AVI in 2021 Joined AVI in 2005 Wilfrid Craigie William Hawkes Senior Analyst Analyst European & North American North American Holding Holding Companies Companies Joined AVI
Slide 30: Important Information
Important Information - A s s e t V a l u e I n ve s t o r s L i m i t e d ( “ A V I ” ) i s r e g i s t e r e d a s a n I n ve s t m e n t A d vi s o r wi t h t h e S e c u r i t i e s a n d E xc h a n g e C o m m i s s i o n a n d a u t h o r i s e d a n d r e g u l a t e d b y t h e F i n a n c i
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