Continuing concerns regarding global growth saw markets swoon with our MSCI AC World ex-US benchmark falling 3.1%. Our NAV fell by 40bps more than the market as the portfolio discount widened out to 28%.
Symphony International was our largest contributor, as it bounced back from a pronounced fall at the end of August. Minor International, the Thai hotels and restaurants group that accounts for 45% of Symphony’s NAV, strongly outperformed a weak Thai market rising +8.5% vs MSCI Thailand’s negative return of -4% for the month.
Disappointing news came from Better Capital with the disposal of Fairline, the luxury boats manufacturer, for a “modest deferred consideration”. While we are pleased that no further capital was committed to the “problem child” of the 2009 cell, the hit to NAV is clearly a negative. That said, the sale of Santia expected before year-end could mitigate the impact.
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’