ADIG’s investment objective is to achieve a total portfolio return of Libor +5.5% per annum (net of fees) over rolling five-year periods by investing globally using a flexible multi-asset approach via quoted and unquoted investments.
Aberdeen Diversified Income and Growth Trust (ADIG) aims to generate attractive long-term income and capital returns from its diversified multi-asset portfolio. In line with the March 2017 strategy change, the process of recycling capital from listed to longer-term, unlisted holdings is continuing. These should represent c 43% of NAV (vs 26% at end-September 2019) on full deployment of existing commitments. ADIG’s underperformance since the strategy change reflects, among other things, ongoing portfolio repositioning, issues with its insurance-linked and litigation finance holdings and the value bias of its listed equity exposure. Since end-May 2019, the discount to NAV has been above the targeted 5%. That said, ADIG outperformed its benchmark over the last 12 months and it continues to offer an attractive prospective dividend yield of c 5.6%.