BTEM had a good month with its NAV rising by 7.2%. A narrowing portfolio discount, in from 31.7% to 30.1%, strong performance from some of the largest positions in the portfolio, and continued Sterling weakness all contributed.
Aker was yet again our largest contributor. A combination of solid NAV growth (+4%), a narrowing discount (from 31% to 27%), and a strong Krone (+2.4% vs GBP) combined for a 14% return in Sterling over the month. On the last day of the month, Aker BP (which accounts for 57% of Aker’s NAV) announced its maiden dividend. Aker BP was formed earlier this year through the merger of Aker’s DetNorske business with BP Norway’s assets, a transaction that has left the merged entity with not only exceptional growth prospects but substantial current cash-flows.
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’