BTEM’s NAV fell by 2.8% over November in a month where returns in local currency were swamped by a strengthening Pound on growing expectations of a “soft” BREXIT. Against Sterling, the Euro fell by 5.4%, the Norwegian Krone by 5.0%, the Swedish Krona by 4.3%, the Japanese Yen by 10.0%, and the US Dollar by 2.2%. This follows an October in which we had benefitted from Sterling weakness, and a pattern of currency volatility is becoming well established.
Our top position, AP Alternative Assets (AAA), was by far our largest contributor as its sole holding – fixed annuity specialist Athene Insurance – officially launched its IPO and AAA shares rose 16% (in USD) in response to add 89bps to our NAV. AAA is distributing 12.5% of its stake in Athene to AAA shareholders which can then be sold at the IPO.
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’