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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.

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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.

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March

Fears over a Trump-provoked trade war rocked markets in March. BTEM’s portfolio discount widened further (from 25.4% to 27.6%) and contributed to a decline in NAV of -4.1% with local currency losses exacerbated by continued strength in the Pound. The few positive contributions came from Digital Garage, Adler Real Estate, GP Investments, and Riverstone Energy, but these were dwarfed by (unrealised) losses in Wendel, Pershing Square Holdings, Cosan Ltd, Tokyo Broadcasting System, Symphony International, and the Japanese Special Situations Basket.

Digital Garage’s NAV increased by 4% and its discount narrowed from 15% to 9% over March. We first purchased shares in Digital Garage in early-2016, with our investment returning +74% since then against the TOPIX return of +37%.  Our investment thesis was predicated on the market’s undervaluation of Digital Garage’s unlisted assets (payments and online marketing businesses, and other venture capital investments), with investors seemingly only focussed on its stake in listed Kakaku (Japan’s largest online price comparison and restaurant-review company).  Given the growth rates of Digital Garage’s unlisted assets, we believed the valuation anomaly was unlikely to persist and, indeed, the discount has narrowed from 33% since our first purchase while the earnings of the two major unlisted assets have grown by +58%.  Given the inadequate prospective returns from the current valuation level, we continued to sell our position into this strength and exited the last of our holding in early April.

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’

British Empire currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers (“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an authorised investment trust. © British Empire Trust plc. 2014 Registered in England No: 00028203. An investment company under Section 833 of the Companies Act 2006. Registered Office: Beaufort House, 51 New North Road, Exeter, EX4 4EP. Managed by Asset Value Investors Ltd. which is authorised and regulated by the Financial Conduct Authority. Past performance should not be seen as an indication of future performance. The price of investments and the income may fall as well as rise and investors may not get back the full amount invested. British Empire uses gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details of the risks affecting your investment. Performance figures are cumulative and based on Price total return and do not include Plan charges. For more information, please call 03458 500181. Tax treatment depends on the individual circumstances and may be subject to change in the future. Asset Value Investors Ltd do not offer Innovative Finance ISAs.