QuotedData’s morning briefing 1 October 2024 – BGCG, DIG, AIE, VNH, PGPE
In QuotedData’s morning briefing 1 October 2024:
- Baillie Gifford China Growth Trust (BGCG) announced its interim results for the six months to 31 July 2024. The company delivered a NAV total return of 10.2%, trailing the benchmark index return of 12.0%. The share price rise was 4.1% as the company’s discount to NAV expanded from 6.2% to 11.6%. The manager noted that despite the underperformance, an increased focus on shareholder returns by large corporates, incrementally supportive policy from Beijing, and markedly low valuations at the beginning of the financial year all contributed to its positive return. It adds that the Chinese economy, however, remains relatively lacklustre, with downbeat consumer spending and weak industrial demand.
- Dunedin Income Growth (DIG) announced its interim results for the six months to 31 July 2024. The company’s NAV total return for the period was 8.2%. This compares to a total return of 12.3% from the benchmark index. The share price total return was 10.5%, reflecting a narrowing of the discount from 10.7% to 9.0%. The company’s performance relative to the market reflects the portfolio of high quality companies which were out of favour during the period. The manager noted that the portfolio continues to showcase strong quality characteristics while delivering a premium yield and stronger dividend growth compared to the FTSE All-Share Index. A first interim dividend in respect of the year ending 31 January 2025, of 3.2p (2024: 3.2p) per share, was paid on 30 August 2024 and the board has declared a second interim dividend of 3.2p (2024: 3.2p) per share, which will be paid on 29 November 2024 to shareholders on the register on 1 November 2024. Based on last year’s annual dividend of 13.75p per share, the dividend yield on the company’s shares was 4.6% at the end of the period. This is one of the higher yields available from the AIC’s UK Equity Sector and is approximately 20% higher than the yield available from the UK equity market.
- Ashoka India Equity Investment (AIE) announced that valid redemption requests for 358,340 ordinary shares were received for the 30 September 2024 redemption point. The process for redeeming ordinary shares, including the calculation of the redemption price, is detailed in the Share Issuance Programme prospectus issued in April 2024. All 358,340 ordinary shares have been matched with buyers and sold at a redemption price of 287.01 pence per share. Shareholders who applied for redemption will receive this price per share. Payments for the valid redemption requests are expected to be dispatched on or around 14 October 2024.
- Following the announcement on 5 September 2024, the VietNam Holding (VNH) board announces that several shareholders who had requested the redemption of some or all of their VNH ordinary shares have since asked to withdraw part or all of their redemption request. The board has agreed to permit this withdrawal. As a result, the number of ordinary shares validly tendered for redemption is 3,406,598, which will be redeemed under the 2024 redemption opportunity. This reduced number represents approximately 12.6% of the ordinary shares in issue as of 31 August 2024. The board will make a further announcement once the net asset value per share as of 30 September 2024 is finalised and the timetable for the payment of the redemption proceeds is confirmed.
- Partners Group Private Equity (PGPE) has agreed to sell its majority stake in Techem, an international provider of digital solutions for the building ecosystem, to TPG and GIC on behalf of their clients. The transaction values Techem at an enterprise value of approximately EUR 6.7bn. Existing co-investors CDPQ and Ontario Teachers’ Pension Plan, will also exit their stakes. The deal is expected to close in the first half of 2025, pending customary conditions and regulatory approvals. The transaction values the company’s stake in Techem, its 6th largest portfolio company, at approximately 4% NAV, which is in line with the latest published carrying value