Last checked at 
17 Mar 2020 17:15
London, UK, 17 March 2020
Edison issues review on Aberdeen Diversified Income and Growth Trust (ADIG)
Aberdeen Diversified Income and Growth Trust (ADIG) aims to generate attractive long-term income and capital returns from its diversified multi-asset portfolio. In line with the March 2017 strategy change, the process of recycling capital from listed to longer-term, unlisted holdings is continuing. These should represent c 43% of NAV (vs 26% at end-September 2019) on full deployment of existing commitments. ADIG's underperformance since the strategy change reflects, among other things, ongoing portfolio repositioning, issues with its insurance-linked and litigation finance holdings and the value bias of its listed equity exposure. Since end-May 2019, the discount to NAV has been above the targeted 5%. That said, ADIG outperformed its benchmark over the last 12 months and it continues to offer an attractive prospective dividend yield of c 5.6%.
Since the strategy change in March 2017, ADIG's NAV TR performance has lagged its benchmark (Libor + 5.5%), which has resulted in a NAV discount in excess of 5% in recent months. Over the 12 months to January 2020, the NAV TR of 7.5% was ahead of the benchmark, aided by the solid performance of emerging market bonds and asset-backed securities. The last 12 months (LTM) dividend yield of 5.5% is ahead of most of its peers.
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