(Alliance News) - Aberdeen Diversified Income & Growth Trust PLC on Friday reported a "frustrating" financial year which saw its shares begin trading at a discount to its net asset value.
In the year ended September 30, net assets fell 3.4% annually to GBP413.7 million from GBP428.1 million. Net asset value per share was down 1.7% year-on-year to 128.08 pence from 130.31p.
Aberdeen Diversified said: "The share price total return of -9.0% was adversely impacted by a lower rating for the company's shares, resulting in a premium of 3.2% at September 30, 2018 turning to a discount of 7.6% at September 30, 2019."
The stock was trading 0.3% higher on the day Friday morning in London at 108.32p each, a 15% discount to the September 30 net asset value.
Aberdeen Diversified added: "The board continues to monitor closely the company's discount or premium and will seek to buy back shares in line with this policy, or indeed issue shares, if this is in shareholders' best interests."
During the period, the company paid four interim dividends totalling 5.36p, up 2.3% from 5.24p last year.
Aberdeen Diversified said: "It has been a frustrating period for performance. The portfolio has delivered a high level of income in line with the board's expectations but the capital value has been impacted by our exposure to insurance linked securities and to a lesser extent, the recent short selling attack on Burford Capital Ltd."
Short seller Muddy Waters Capital LLC in August targeted Burford, calling it "a poor business masquerading as a great one" and "arguably insolvent".
On August 6, Muddy Waters tweeted that it would announce a new short position the next day but without disclosing the name of the company it would short. Then, on August 7, Muddy Water tweeted a link to its report on Burford.
Burford's share price fell 19% on August 6 and another 46% on August 7.
By Eric Cunha; ericcunha@alliancenews.com
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Abrdn Di&g (ADIG)
Burford Capital (BUR)