In a challenging month for equity markets, BTEM’s NAV fell by -4.9%. This decline was less than broader markets despite a headwind from portfolio discount widening (from 30.4% to 30.8%). A favourable outcome in the Brazilian election (for markets if not human rights) translated into exceptional returns from our two Brazilian holdings, Cosan Limited and GP Investments, which topped the contributors table over October. A weakening of the Pound on the back of continued Brexit uncertainties also helped given BTEM’s very low look-through weighting to Sterling (c1% of NAV). Fondul Proprietatea’s share price was flat over the month, putting it in third place, while JPEL Private Equity also held up well (down just -1%). The largest detractors were the Japanese Special Situations basket, EXOR, Wendel, Tokyo Broadcasting System, and Pargesa.
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’