BTEM had another strong month with a 6% increase in NAV. We saw very slight discount contraction as the portfolio discount narrowed from 33.4% to 33%. Overall, discounts across the portfolio remain wide both in absolute terms and relative to historic levels.
Aker was once again our largest contributor with another month of strong share price performance – up 18% in local currency terms. This was driven by a combination of both NAV growth and discount contraction, although the current level of discount (32%) remains far too wide in our view. Whilst no major news was out, the market is still rewarding the company for the DetNor- BP Norway transaction announced last month, the latest in a series of value enhancing transactions the company has carried out.
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’