The portfolio discount tightened slightly over the month to rest at 31% at month-end.
Aker was our largest contributor, benefitting from the sustained rally in oil which rose 20% over the month and from maintaining its dividend at last year’s level when many sell-side commenters were expecting a cut. Aker’s performance was all the more creditable given no change in its very wide discount (41%) which represents an attractive store of future outperformance. Pargesa was a strong performer, with its exposures to oil (Total) and European construction (LafargeHolcim) boosting returns, while its relatively new holding in Adidas continued a run of stellar share price performance. Its robust NAV growth was accompanied by a 260bps narrowing of the discount.
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’