Aberf Geared Share Price (AGVI)

Whether you think that the discount here provides a buying opportunity depends on your assumptions. The zdp shares have a 7% nominal annual yield which is a pretty high hurdle to overcome for a trust which intends to buy small value based companies. However, if you think that British small companies are cheap at the moment, this could be a very good investment indeed given the level of gearing. I don't like the bid/offer spread at the moment but if the spread narrows and liquidity improves, this might be worth a punt.

Since the trust has a planned life of only seven years and given the small size of the trust, I don't anticipate the company buying back shares. The existence of the zdp shares would mean any share buyback would further increase gearing. The discount looks odd since the discount will be eliminated at the end of the seven year period.

I get to go first! Ex holder of the previous fund, but cashed out. Thinking of dabbling with this again due to the increasingly insane discount largely. Does anybody know if they've got a discount management or buyback scheme in place?