In an eventful month, BTEM was up +8.1%, with the major moves coming in the last week following a shock victory for the Leave campaign in the EU referendum. Headwinds from sharply widening discounts (portfolio discount expanded 300bps to 33.4%) were more than offset by the beneficial effects of the collapse in Sterling given our low exposure to GBP assets (just 6% on a look-through basis).
NAV growth of +17%, a moderately tighter discount, and a +9% translation effect from the Norwegian Krone combined to again make oil-focussed Norwegian holding company Aker our largest contributor. Over the last 3 months, the shares are up +66% in GBP (+56% in local currency). The activity at Aker is a textbook example of the value that engaged long-term owners can create throughout market cycles.
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’