AVI Global Trust plc (AGT) Ord 10p
This trust is managed using a robust and well-established approach. We like the concept of finding undervalued, but high-quality businesses with a catalyst to return them to form. The managers take a pragmatic view and if they are struggling to find opportunities they will increase cash. Presently they are finding plenty of opportunities so cash is at a minimum.
The management team has the flexibility to use gearing (borrowing to invest), but the trust has generally maintained a net cash position for many years. Gearing increases risk, not least because it can result in magnified losses when the portfolio falls in value. Please refer to the latest annual report and accounts for full details.
The specialist approach and unique nature of the trust's investments mean it will perform differently from any benchmark. In recent years the manager's style has been out of favour, but over the long term attractive returns and growing dividends have been delivered to shareholders; although there are no guarantees this will continue.
We believe this trust could appeal investors with a long-term horizon and a diversified portfolio who are looking for something a little different to add to their portfolio. Potential investors should ensure they are comfortable with the risks, details of which can be found in the latest annual report and accounts along with the charging structure.
The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation.
Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close to the mid-price or declared late are labelled 'N/A'.