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To realise value through exiting the investments over time, the Company invests in early (but not seed) or later stage investments in unquoted fintech businesses.
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I’ve been thinking about the question of “buying the dip” a little more so here goes. My original answer was intended to address from a common sense perspective whether shares in an investment trust are expensive or cheap when compared with the assets on which valuation is secured.
The share price of this IT have fallen since your question was published but it might not mean that the valuation of the IT relative to the NAV has fallen. It might have actually risen. For this, or any other IT, the current NAV should be compared with historic average NAV to determine if a divergence exists. A change of manager might, even with unchanged underlying assets, cause a major shift from discount to premium or vice versa.
Your question is thus very sophisticated and intelligent.
some of these Friday on a recommendation. Seems one for the future.
The government response to the Kalifa report is likely this week. Fintech industry leaders support it strongly eg the proposals for creating a £1bn growth fund and forming an innovation support task force.
Uk Fintech start ups raised £4.3bn in Q1 2021 alone!!!! More than for the whole of 2020!
UK has 10% share of global fintech market generating £11bn of sales pa.
Strong government backing (very likely imo) would help propel the sector even further forward. It really is the future.
I am not qualified to give financial advice but investment trusts (IT) have different rules from open ended funds. For a start shares are bought and sold much like equities, next the IT is able to lever assets can go long or short etc.
The assets are published from time to time so that not only are they open and verifiable, but investors can see how the fund moves within assets. Most assets are publically quoted and thus have known values. These form the Nett Asset Value (NAV) for the IT. This figure is usually published daily and may show if the IT is trading at a discount or premium to the NAV.
If at a premium, it might reflect the ability of management of the IT to grow the IT, but at a discount, the potential illiquidity of the assets. Where the discount is greater or at a higher premium than is typical, focus might be given for the cause which, in turn, might help in any investment decision.
I hope this provides a little flesh from which to begin to understand whether this IT should feature in your portfolio. It does feature in mine, though my purchase was made last year. It represents about 1.6% portfolio though at the time was 2.5%. Not, because it was a poor choice, but because other holdings have performed very well. I do not like to have any holding representing more than 4.5% of wealth so tend to sell the turgid holdings and re-invest the proceeds. More often than not it means selling 3 holdings, buying 2 and reinvesting any cash thrown off as dividends. I am currently sitting on under 1% cash having transferred some of the remaining holdings from my dealing account to ISA accounts for self and wife.
Noob question but this will dip won't it? I wanted to invest here but the share price seems to only rise and I can't work out when to "buy the dip"
Private equity investment trusts, best kept secret on the market. 1800 equities on the LSE, the lowest for a long time, 1.6 million businesses in the UK, of course loads are SMEs but that's where the real growth is. With interest rates so low and listing so expensive companies can find plenty of cheap capital without having to go the IPO route. Also illiquid private equity assets are no good for open ended funds as outflows force the fund manager to sell, investment trusts are the best option. Unfortunately the shareholder needs to trust that the valuations are honest, so far I've found that they tend to underestimate the NAV. Members of the AIC, like AUGM, should be safer.
pretty confident this will be at least another 100% + this year. Fintech is definitely the future
AUGM is now up over +100% in the past year.
Fintech is the future.
And just to give you some numbers - traffic for iii.co.uk was at a steady 200k towards the end of 2018, it dropped off since then and is now down to 20k.
Thanks! Really appreciate the help there. Interesting you like ii, but looking at their web stats, i think you may be the minority, as traffic has decreased a fair bit - maybe they will just have to gain a new customer base as old users leave.
What really brought me here was that Aug started investing in DeFi, but I am a bit disappointed that they don't even list it, so it must be a very small investment, which is a shame.
I will take a deeper dive into some of their bigger holdings though, as admittedly I don't know an awful lot about them apart from ii and Zopa.
mfdoom, I actually disagree having joined ii recently, I find their customer service particularly good and very helpful. Last breakdown I had was:
Company
interactive investor 11.4%
Tide 11%
Monese 10%
Zopa 9%
Bullion Vault 7.6%
Onfido 6.5%
iwoca 5.9%
Receipt Bank 5.8%
Grover 3.9%
Habito 3.9%
Farewill 3.1%
Cash 11.2%
Other 11.1%
I have a strong interest fintech and crypto, but what puts me off investing here is the way ii.co.uk was transformed - one of the worst website redesigns I've seen that saw 90% of the community leave and despite thousands of messages of complaint, no attempt made to listen to customers...
Does anyone have a breakdown of Aug's investments? I would really like to see how their capital is spread. Thanks.
Morning FeverClucker, no I'm only in AUGM for fintech. Bought in 2018 and topped up early last year. Looking good, with a rosy future imo. GL
The trusts Etotheipi mentioned look interesting too.
yep looking good - flundra you have any similar investments to AUGM in fintech sector?
https://businesscloud.co.uk/what-did-the-2021-budget-mean-for-the-uk-tech-sector-and-covid-19/
Budget v helpful and supportive for fintech. See the sections on Future fund and New overseas visa scheme. Kalifa report recommendations being implemented fast. Government is serious about turbo charging fintech sector in double quick time.
ITs don't generate much interest on this site. Crazy, just look at the 5 year performance of SMT, JCGI and HGT!
yep agree flundra still very much under the radar. Could do another 50% in next 6 months imho
I'm surprised this chatboard isn't buzzing. PIs should be all over this. Young fashionable sector with massive fast growth potential and now strong government support. 50% up in last 6 months or so.
I am not surprised that the Chancellor is keen in fintech, it is a sector which is in fashion.....same with renewables....This promotes trading activity even if the sector does ot fulfil expectation. From an Exchequer pperspective, I would have thought that if there is the prospect of London Stock Exchange losing out to Frankfurt, it would be a blow to tax revenues. Consider all the tiny algo trades which generate 0.5% on the buy side..... Aside from maintaining a healthy market, presumably the majority of the time there is a profit. Corporate profits attract tax
https://www.bbc.co.uk/news/business-56204277
https://augmentum.vc/news/the-kalifa-review-of-uk-fintech/
So AUGM seem broadly welcoming and supportive of the Kalifa report. Looks like the growth fund would be more for pension fund IIs, not perhaps AUGM itself.
Looks like the Kalifa report is coming this week. Fintech's certainly a good sector to be invested in. Where will AUGM position itself in this Treasury initiative?
The chancellor seems super keen on fintech. Reviewing regulations and listing rules to encourage fintech firms to set up in UK. All part of the post Brexit strategy and to fill the gap as the City loses some European business.
Bodes well for AUGM. I also wonder if they'll widen their objects to include seed finance particularly if they can participate in the fintech growth fund, if that sees the light of day. Reports are due to be published soon.
Exciting times in an exciting sector imo.
I purchased AUGM around the £1.10 price level prior to the over subscribed placing. One of my friends works for for one of the big banks (Wealth Management) sector. He has worked for some of the big banks and is a big advocate for the Fintech Sector v the conventional banks, it takes a big ship longer to change course. The benefit I see with this share is they have a very professional forward thinking Board and some Diverse Fintech investments. One of my long terms holds along with Begbies Traynor, I can see the long term growth here too. Like to dip in and out with others when a good price is on offer with FTSE 100 or 250 companies... this is my first post on the Forum but wishing you all good luck with your investment picks. PS I still like to invest more in the pension, it has its tax benefits but is not so much fun as researching and investing in shares..
Hi folks, just looking at this co. I was visiting the website and reading the “Investor Disclosure Document”. It appears to have huge tiers of fees
Page 7: “Subject to certain exceptions, AFML will receive, in aggregate, 15 per cent. of the net realised cash profits from the investments and follow-on investments made over the relevant period once the Company has received an aggregate annualised 10 per cent. realised return on investments...”
Is this actually the way it reads: all net profits, first 10% goes to AUGM, then 15% goes to the AFML?
Thank you for any insights in advance.
Looks more like the kiss of life Mr T. I actually sold half my holding to buy WOSG after buying into the IPO at 100p as this was so slow at one point for 106p but bought even more than I sold in the recent placing at 120p as I believe it has found its feet. I use II myself as my broker and I would imagine it is doing very well in the current bouyant market. Lots to like here and holding on to ride the wave.