Poor Performance21 Jul 2022 21:23
On my broker valuation(Halifax), my losses on AV. are not pleasant reading. The figures tell me that AV. has lost 22.73% in the last year. People will say that the company has compensated through its rather strange method of returning money to shareholders and that my broker's system is at fault for not allowing for this. As I understand it, the process was a rather panicky method of satisfying a powerful activist investor, Cevian which had built a significant stake in the company and which claimed that AV. had been poorly managed for years.
But then I think, why should my broker build into its system an algorithm that reflects reality as AV. would like it to appear? I just wish now I had sold the lot before they starting messing me about.
Comparing a similar company to AV., Aegon NV, I see that its revenue was 1.62 billion Euros whereas AV. made £248m. Aegon's share price has risen by 15.53%.
It seems the company acknowledged its failure in the annual report for 2021:
"2021 was the year Aviva began to deliver on its promise to become the business that our customers, people and shareholders deserve it to be. In many ways it feels like a new Aviva. Our work to focus the portfolio is now complete and we’re concentrating our efforts where we are best placed for success." George Culmer, Chair.
Nevertheless, since the return of capital AV. shares have continued their disappointing performance, languishing behind the likes of LGEN and MNG and attractive only because of the dividend. Any signs that AV. is 'placed for success' would be welcomed.
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