AVI Global Trust Reports 12.4% NAV Return and 20% Dividend Increase in 2025

AVI Global Trust’s 2025 scorecard: solid gains, fatter dividend, tighter discount

AVI Global Trust (AGT) has posted a respectable year. Net asset value (NAV) total return came in at +12.4% with the share price up +15.4%. That trailed the MSCI All Country World Index at +16.8%, but there is good news elsewhere: the discount narrowed to 6.7%, the dividend was lifted by 20%, and buybacks were put to work.

Remember: NAV is the per‑share value of the portfolio. Investment trusts often trade at a discount or premium to NAV. AGT hunts for companies on wide discounts and tries to close them through engagement – it’s very much the strategy here.

Key numbers investors care about

NAV total return (year to 30 Sept 2025)	+12.4%
Share price total return	+15.4%
Comparator benchmark (MSCI ACWI, £)	+16.8%
Year-end discount to NAV	6.7% (2024: 9.0%)
Discount range during year	6.2% to 11.1%
NAV per share (debt at fair value)	280.87p
Total dividend	4.50p (up 20%)
Proposed final dividend	3.00p
Record / Ex‑div date	28 Nov 2025 / 27 Nov 2025
Payment date (if approved)	2 Jan 2026
Revenue earnings per share	5.07p
Ongoing Charges Ratio	0.85% (2024: 0.87%)
Investment income	£35.44 million
Shares bought back	28.65 million (5.9% of starting share count)
Estimated NAV accretion from buybacks	+0.6%

Dividend increase: what’s behind the 20% rise?

AGT proposes a 3.00p final dividend, taking the year’s total to 4.50p (2024: 3.75p). Revenue EPS was 5.07p, so the dividend is covered by income. The board is frank that the trust is run for capital growth, but it does aim for a steadily rising payout. For income‑minded investors, that’s a helpful signal without turning AGT into an income fund.

Performance context: decent absolute, modest relative

AGT’s absolute return was positive, but the trust lagged a benchmark dominated by a narrow set of AI‑related winners. Management notes a tough September where underweights to the “Mag‑7” hurt, while stock selection (notably D’Ieteren and Gerresheimer) created dispersion. Over three years NAV total return is +47.3%, and over ten years +225.3%; the board emphasises long‑term results for a differentiated, benchmark‑agnostic strategy.

Discount narrowing and buybacks: why it matters

The year‑end discount tightened to 6.7% from 9.0%. That’s meaningful because the share price total return outpaced NAV partly thanks to this move. The trust bought back 28.7 million shares at an average discount of 8.6%, adding an estimated +0.6% to NAV per share. For continuing holders, that’s accretive capital allocation in action and exactly the sort of discipline you want from a discount‑focused manager.

What AGT owns: concentrated bets on discounted assets

Top positions are a who’s who of “sum‑of‑the‑parts” and closed‑ended funds trading well below NAV. The top 10 made up 56.6% of net assets. Notable holdings include:

• Chrysalis Investments – 8.3% of NAV, at a -29% discount. Buybacks and uplifts at Starling Bank and Klarna helped.
• News Corp – 7.2% of NAV, -40% discount, with Dow Jones highlighted as a crown jewel.
• Vivendi – 7.2% of NAV, -42% discount following a break‑up to simplify and reduce the conglomerate discount.
• D’Ieteren – 6.5% of NAV, -49% discount, underpinned by Belron. A standout contributor.
• Several private equity funds (HarbourVest, Oakley, Partners Group) on 25%‑34% discounts.

The manager says the portfolio’s weighted average discount sits at -37.4% – unusually wide in what has otherwise been a buoyant market. The core thesis remains: own undervalued assets and push for catalysts to close the gap.

Winners and losers: where returns came from

Big contributors

• D’Ieteren: +240 bps contribution after a special dividend dislocation created a buying window. Management flags Belron’s long runway and the potential for an IPO as a future catalyst.
• Aker ASA: +232 bps, helped by Aker BP’s strength and discount narrowing from 25% to 12%.
• Chrysalis: +208 bps, driven by NAV gains and an aggressive buyback programme.
• Toyota Industries: +153 bps after a take‑private proposal validated the governance reform theme in Japan.

Key detractors

• Gerresheimer: -405 bps after profit warnings and a BaFin investigation into revenue recognition practices. AGT pressed for change; a new CFO is in and a Moulded Glass exit is planned, but confidence needs rebuilding.
• Rohto Pharmaceutical: -167 bps amid sector weakness and brand headwinds; AGT launched a public engagement campaign to refocus capital allocation and disclosure.
• Exited positions: IAC (-70 bps) and a hedged SoftBank trade (-40 bps) were acknowledged missteps; Apollo was exited with strong multi‑year gains.

Geography and themes: Japan lessons, South Korea opportunity

Japan still matters (19% of the portfolio), but the new hunting ground is South Korea at 8% of NAV. The playbook is familiar: undervalued holding companies, governance improvements and specific catalysts. Expect a patient, activist‑leaning approach rather than a quick trade.

Costs, governance and AGM logistics

The Ongoing Charges Ratio eased to 0.85%, with running costs of £9.5 million. The board remains active on buybacks and marketing, noting increased retail platform ownership. The AGM is on 19 December 2025 at 11.00am, 11 Cavendish Square, London W1G 0AN, with a virtual option for Q&A (but no live voting).

What could move the shares next

• Discount dynamics: further buybacks and any narrowing from the current 6.7% year‑end level could boost share price returns versus NAV.
• Company‑specific catalysts: Belron developments at D’Ieteren, ongoing actions at Gerresheimer, and buyback/realisation progress across closed‑ended fund holdings.
• Regional reform: governance changes in Japan and South Korea can unlock value in holding companies and asset‑rich situations.
• Positioning: gearing has been reduced and was 2.6% at the time of the outlook commentary, giving scope to be opportunistic if volatility returns.

My take: a good year for the playbook, with work to do

AGT delivered positive absolute returns, a tighter discount and a bigger dividend. Relative underperformance against a tech‑heavy benchmark is not ideal, but it is consistent with a strategy centred on out‑of‑favour assets and engagement rather than chasing momentum.

The bull case: a portfolio on wide underlying discounts (-37.4%), persistent buybacks, improving retail ownership and multiple company‑level catalysts. The bear case: concentration in idiosyncratic situations, headline risk around holdings like Gerresheimer, and reliance on discount narrowing in a market still enamoured with a narrow set of growth names.

Net‑net, if you believe in activism, corporate events and discount mean‑reversion, AGT’s positioning looks sensible. The 20% dividend increase is a nice kicker, but the real prize remains sustained NAV growth plus steady discount progress. One to watch for any widening discount opportunities – and for signs that the engagement pipeline keeps delivering.