BTEM’s NAV fell by 2.5% in September. Our portfolio has negligible exposure to Sterling assets and so a strengthening Pound meant positive investment returns for the month were swamped by the impact of FX. The Pound rose against all major currencies (3.9% vs USD; 4.5% vs EUR; 6.1% vs JPY; 6.3% vs SEK; 6.2% vs NOK; and 4.6% vs CHF), although a significant portion of these moves has been subsequently reversed in October to date.

Aker was our largest contributor, adding 32bps to BTEM’s NAV despite the FX headwinds. Underlying holdings Aker BP (Oil & Gas E&P), Aker Solutions (Oil Services), and Akastor (drilling, rigs) all appreciated in excess of or in-line with a rising oil price, driving Aker’s NAV higher.  Our return was further buoyed by Aker’s narrowing discount which contracted by 490bps over the month.  Aker is a great example of how market sentiment can create opportunities.  Over calendar year 2016, we had increased our position in Aker at discounts in excess of 40% at a time when many were very bearish on the oil price and oil-related equities.  Our view was that Aker’s strong balance sheet meant it was better-placed to ride out a depressed backdrop than the market was giving it credit for.  It became our largest holding and subsequently went on to perform very strongly, and we reduced our position significantly in late-16 and throughout H1-17 at discounts in the low-20%s.  A widening discount in July of this year allowed us to increase our holding at a 32% discount to NAV at prices 23% lower than the peak at which we sold.  Following the re-rating in September, Aker shares ended the month at a 29% discount to NAV.  Largest holding Aker BP accounts for 61% of NAV and first oil at its flagship asset, Johann Sverdrup (break-even of $25 p/barrel), is scheduled for 2019.

AVI Global Trust p.l.c is referred to as ‘AVI Global’ throughout the website. AVI Global’s investment managers, Asset Value Investors are referred to as ‘AVI’

AVI Global currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers (“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an authorised investment trust. © AVI Global Trust plc. 2019 Registered in England No: 00028203. An investment company under Section 833 of the Companies Act 2006. Registered Office: Beaufort House, 51 New North Road, Exeter, EX4 4EP. Managed by Asset Value Investors Ltd. which is authorised and regulated by the Financial Conduct Authority. Past performance should not be seen as an indication of future performance. The price of investments and the income may fall as well as rise and investors may not get back the full amount invested. AVI Global uses gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details of the risks affecting your investment. Performance figures are cumulative and based on Price total return and do not include Plan charges. For more information, please call 03458 500181. Tax treatment depends on the individual circumstances and may be subject to change in the future. Asset Value Investors Ltd do not offer Innovative Finance ISAs.


The website is directed only at Professional Clients in the UK. The website is issued by Asset Value Investors Limited (“AVI”), in respect of AVI Global Trust plc (“AVI Global”). AVI is authorised and regulated by the UK Financial Conduct Authority (“FCA”). AVI Global is a public company listed and traded on the London Stock Exchange.

You agree that we may contact you about our products and services that we believe you might be interested in.

The price of the Shares will be determined by supply and demand in the market as well as NAV per Share. The market price of the Shares is therefore likely to fluctuate and may represent either a premium or discount to NAV per Share.