The website is directed only at Professional Clients in the UK. The website is issued by Asset Value
Investors Limited (“AVI”), in respect of British Empire Trust plc (“British Empire”). AVI is authorised and
regulated by the UK Financial Conduct Authority (“FCA”). British Empire is a public company listed and
traded on the London Stock Exchange.
You agree that we may contact you about our products and services that we believe you might be interested
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.
The investment philosophy employed by Asset Value Investors (“AVI”), the managers of British Empire, 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
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”) value investment process for British Empire 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 400 companies out of this universe, which track stock prices and earnings information.
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
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.
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
We want to have a reasonably concentrated portfolio (typically 30-40 stocks) of our best ideas
The objective of AVI’s portfolio construction process is to end up with a concentrated portfolio of about 50-60 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%.
British Empire Securities and General Trust p.l.c is referred to as ‘British Empire’ throughout the website. British Empire’s investment managers, Asset Value Investors are referred to as ‘AVI’