AVI Global Trust plc (AGT) 2024年年度報告「LSE」.pdf

1、Resilience.Longevity.Growth.Annual Report 2024*As at 30 September 2024.*Source:Morningstar,performance period 30 June 1985 to 30 September 2024,total return net of fees,GBP.The current approach to investment was adopted in 1985.*As at 30 September 2024,includes:management fee,marketing and administr

2、ation costs.Formerly disclosed as the Expense Ratio.For all Alternative Performance Measures included in this Strategic Report,please see definitions in the Glossary on pages 101 to 105.Retail Investors Advised by IFAsThe Company currently conducts its affairs so that its shares can be recommended b

3、y Independent Financial Advisers(IFAs)in the UK to ordinary retail investors in accordance with the Financial Conduct Authority rules in relation to non-mainstream investment products and intends to continue to do so.The shares are excluded from the Financial Conduct Authoritys restrictions which ap

4、ply to non-mainstream investment products because they are shares in an authorised investment trust.The Company is an Alternative Investment Fund(AIF)under the European Unions Alternative Investment Fund Managers Directive(AIFMD).Its Alternative Investment Fund Manager(AIFM)is Asset Value Investors

5、Limited(AVI,or the Investment Manager).Further disclosures required under the AIFMD can be found on the Companys website:www.aviglobal.co.uk.ISA StatusThe Companys shares are eligible for Stocks&Shares ISAs.AwardsAIC Shareholder Communication Awards 2024 WinnerBest Report and Accounts(Generalist)Inv

6、estment Week Investment Company of the Year Awards 2023 WinnerGlobalCitywire Investment Trust Awards 2023 WinnerGlobal EquitiesAVI Global Trust plc(AGT or the Company)was established in 1889.The Companys investment objective is to achieve capital growth through a focused portfolio of investments,par

7、ticularly in companies whose shares stand at a discount to estimated underlying net asset value.Net assets:1.1 billion*Launch date:1 July 1889 Annualised NAV total return since 1985:11.6%*Ongoing Charges Ratio:0.87%*Annual Report/WelcomeAnnual Report 202402AVI Global Trust plc/Annual Report 2024CONT

8、ENTS Strategic Report:Company Performance 02Company Overview 04The Investment Manager at a Glance 06Chairmans Statement 08Ten Largest Equity Investments 12Investment Portfolio 14KPIs and Principal Risks 16Responsible Business 20Section 172 Statement 21Stakeholders 22Investment Review:Investment Mana

9、gers Review 24A Responsible Approach 26Investment Managers Report 30Portfolio Review 34Outlook 49Governance:Directors 50Report of the Directors 52Financial Statements:Statement of Comprehensive Income 63Statement of Changes in Equity 64Balance Sheet 65Statement of Cash Flows 66Notes to the Financial

10、 Statements 67Other Reports:AIFMD Disclosures(Unaudited)84Report of the Audit Committee 85Directors Remuneration Policy 88Report on Remuneration Implementation 90Independent Auditors Report 92Shareholder Information:Notice of Annual General Meeting 96Shareholder Information 100Glossary 101Company In

11、formation 106We maintain a corporate website containing a wide range of information of interest to investors and stakeholders:www.aviglobal.co.ukAVIGlobalTrustAVIGlobalTrustAVIglobaltrustAVIGlobalTrust$08SStrategic ReportOverview of the Year$48IRInvestment ReviewIdentifying Hidden Value in Dai Nippo

12、n Printing34IRInvestment Review$A Unique Investment Portfolio24IRInvestment Review$The Attractions of Investing in Holding CompaniesAVI Global Trust plc/Annual Report 2024GIRFSORSI01SRStrategic Report/Company PerformanceFinancial HighlightsPERFORMANCE SUMMARY Net asset value(NAV)per share total retu

13、rn was+13.7%Share price total return of+16.3%Final ordinary dividend of 2.55p,and total dividend increased to 3.75p30 September 202430 September 2023Net asset value per share(total return)for the year1*+13.7%+15.3%Share price total return for the year*+16.3%+14.8%Comparator BenchmarkMSCI All Country

14、 World Index (adjusted total return)+19.9%+10.5%Discount*Share price discount(difference between share price and net asset value)2*Share price discount:High Low 9.0%12.3%6.3%10.9%12.9%7.0%Year to 30 September 2024Year to 30 September 2023Earnings and DividendsInvestment income Revenue earnings per s

15、hare*Capital earnings per share*Total earnings per share Ordinary dividends per share Special dividends per share26.60m4.20p27.45p31.65p3.75p24.45m 4.19p 23.83p 28.02p 3.50p 0.20pOngoing Charges Ratio*Management,marketing and other expenses(as a percentage of average shareholders funds)0.87%0.86%202

16、4 Years Highs/LowsNet asset value per share*Net asset value per share (debt at fair value)*Share price*(mid market)High264.40p267.39p248.00pLow 207.84p 211.81p 187.80pBuybacksDuring the year,the Company purchased and cancelled 20,112,011 Ordinary Shares(2023:29,277,886 purchased).1 As per guidelines

17、 issued by the AIC,performance is calculated using net asset values per share inclusive of accrued income and debt marked to fair value.2 As per guidelines issued by the AIC,the discount is calculated using the net asset value per share inclusive of accrued income and debt marked to fair value.The C

18、ompany uses the net version of the index,which accounts for withholding taxes incurred.If the gross version of the Index had been used,the comparative figures for the years ending 30 September 2024 and 30 September 2023 would have been 20.2%and 11.0%,respectively.*Alternative Performance Measures Fo

19、r all Alternative Performance Measures included in this Strategic Report,please see definitions in the Glossary on pages 101 to 105.AVI Global Trust plc/Annual Report 202402Historical recordYear ended 30 September2024202320222021202020192018201720162015Revenue profit for the year 00018,94220,04116,3

20、02 14,289 10,134 21,169 16,933 12,603 18,747 16,268 Revenue earnings per share(p)4.204.19 3.24 2.74 1.87 3.82 2.97 2.09 2.86 2.35 Ordinary dividends per share(p)3.753.50 3.30 3.30 3.30 3.30 2.60 2.40 2.34 2.34 Special dividend per share(p)0.20 0.56 Net assets 0001,112,725 1,031,018969,508 1,133,222

21、883,605 938,941 941,680 903,229 843,973 697,542Basic net asset value per share(p)251.71223.08197.27 221.95 167.43 170.52 168.39 155.52 134.10 103.91 The figures where appropriate have been restated for the share split,which took effect on 17 January 2022,when each existing 10p share was replaced by

22、five new 2p shares,in order to be comparable on a like-for-like basis.The Companys net asset value and share price compared to the MSCI All Country World(adjusted total return)*The current approach to investment was adopted in June 1985.AVI Global Trust plc NAV TRAVI Global Trust plc Share Price TRS

23、ept2024Sept 2023Sept 2017Sept 2019Sept 2021Sept 2015Sept 2013Sept 2011Sept 2009Sept 2007Sept 2005Sept 2003Sept 2001Sept 1999Sept 1997Sept 1995Sept 1993Sept 1991Sept 1989Sept 1987Sept 19858,0007,0006,0005,0004,0003,0002,0001,000100MSCI All Country World Index(adjusted total return)AVI Global Trust pl

24、c/Annual Report 2024GIRFSORSI03SRStrategic Report/Company OverviewFinding compelling opportunitiesOUR PURPOSEThe Company is an investment trust.Its investment objective is to achieve capital growth through a focused portfolio of mainly listed investments,particularly in companies whose shares stand

25、at a discount to estimated underlying net asset value.Global Exposure#Based on location of companies underlying assets,rather than country of listingOUR CORE VALUESUniqueA unique portfolio investing in holding companies,closed-ended funds and asset-backed special situations unlikely to be found in o

26、ther funds.DiversifiedA select portfolio of 40 stocks,but with broad diversification of sectors and companies as a result of the holding structures which give exposure to multiple underlying companies.EngagedSeeking out good quality,misunderstood companies and engaging to improve shareholder value.A

27、ctiveFinding complex,inefficient and overlooked investment opportunities.GlobalBottom-up stock picking,seeking the best investment opportunities across the globe.OUR INVESTMENTSOur underlying investments provide global exposure:2024#%2023%#United Kingdom113North America2229Europe3433Asia810Japan1818

28、Latin America,Africa&Emerging Europe46Oceania3122%AVIglobaltrust/What is AVI Global Trust?11%4%34%AVI Global Trust plc/Annual Report 202404KEY PERFORMANCE INDICATORS(KPIs)The Company uses KPIs as an effective measurement of the development,performance or position of the Companys business,in order to

29、 set and measure performance reliably.These are net asset value total return,share price discount to net asset value and the Ongoing Charges Ratio.Net asset value total return*:+13.7%(2023:+15.3%)Ongoing Charges Ratio*:0.87%(2023:0.86%)2023 0.86%2024 0.87%Discount*(as at Year End):9.0%(2023:10.9%)Ca

30、pital StructureAs at 30 September 2024,the Companys issued share capital comprised 487,662,627 Ordinary Shares of 1p each,of which 45,600,956 were held in treasury and therefore the total voting rights attached to Ordinary Shares in issue were 442,061,671.As at 12 November 2024 it comprised 484,637,

31、627 Ordinary Shares,45,600,956 of which were held in treasury,and therefore the total voting rights attached to Ordinary Shares in issue were 439,036,671.OTHER KEY STATISTICSNet asset value per share:253.81p(2023:226.77p)Number of investments:40 (2023:44)*For all Alternative Performance Measures inc

32、luded in this Strategic Report,please see definitions in the Glossary on pages 101 to 105.Estimated percentage added to net asset value per share from buybacks*:+0.4%(2023:0.6%)Top 10 investments:57.2%(2023:60.7%)Of net assets.Annual General MeetingThe Companys Annual General Meeting(“AGM”)will be h

33、eld at 11.00am on Thursday,19 December 2024 at 11 Cavendish Square,London W1G 0AN.Shareholders will be able to submit questions to the Board and AVI ahead of the AGM and answers to these,as well as AVIs presentation,will be made available on the Companys website.Please refer to the Notice of AGM on

34、pages 96 to 99 for further information and the resolutions which will be proposed at this meeting.8%10 Years +165.3%3 Years +21.49%6.3%(2023:7.0%)2024 low2024 high 12.3%(2023:12.9%)Read more about our KPIs and Principal Risks on pages 16 to 19 of the Annual Report18%3%AVI Global Trust plc/Annual Rep

35、ort 2024GIRFSORSI05SRStrategic Report/The Investment Manager at a GlanceAt a GlanceINVESTMENT PHILOSOPHYThe investment philosophy employed by Asset Value Investors(AVI),the manager of AVI Global Trust,strives to identify durable businesses that are growing in value,trading at discounted valuations,w

36、ith catalysts to unlock and grow value.01.Investing in companies trading at a discount to their net asset value02.Identifying good-quality underlying assets with appreciation potential at compelling values03.Focusing on bottom-up stock picking04.Looking for catalysts to narrow discounts05.Focusing o

37、n balance sheet strengthRead more about on our website:www.aviglobal.co.ukHOW WE INVESTAVI aims to achieve long-term capital growth by investing in a diversified portfolio of companies whose shares are trading at a discount to their estimated net asset value.Approach Principles Portfolio constructio

38、n Screening of the universe 12345 Defi ning E,S&G Stewardship Purpose PhilosophyResearch Filtering WHAT DOES AVI INVEST IN?AVI follows a unique strategy of investing in quality assets typically held through structures that tend to attract discounts;these types of companies are:Holding Companies Clos

39、ed-ended Funds Asset-backed Special SituationsPORTFOLIO BREAKDOWN BY AVI CLASSIFICATION*2024%2023%Holding Companies4358Closed-ended Funds3125Asset-backed Special Situations2617Source/AVI as at 30 September 2024*Please refer to page 25 for more information about these classifications.AVI Global Trust

40、 plc/Annual Report 202406HOW WE MANAGE PORTFOLIO RISKAVIs value investment process strives to identify and mitigate downside risks in all market environments.AVIs risk management approach uses a variety of qualitative and quantitative processes.This includes bottom-up research to establish a company

41、s fundamental value.The portfolio holdings are monitored on an ongoing basis,and AVIs in-house order management system contains an automatic alert system which alerts the Investment Manager to any breaches of built-in risk parameters.The investment management team holds regular meetings discussing t

42、he portfolio,with a view to reassess,sell or buy securities,and to discuss current cash position,as well as sector and geographic weighting.Reassessment of positionsDaily monitoring of positionsMonthly investment meetingsStock-specific Risk Business risk Balance sheet risk Shareholder analysis Regul

43、ar meetings with managementPortfolio/Market Risk Currency risk Geographical concentration risk Sector concentration risk Stock concentration risk Liquidity risk Political riskAVIS RESPONSIBLE APPROACHAVI believes that the integration of ESG and sustainability considerations into our investment strat

44、egy is not only integral to comprehensively understanding each investments ability to create long-term value but is aligned with our values as responsible investors.Aligned with the PRIAVI is aligned with the UN-supported Principles for Responsible Investment(PRI)s belief that an economically effici

45、ent,sustainable global financial system is a necessity for long-term value creation.Such a system will reward long-term responsible investment,and benefit the environment and society as a whole.AVI became a signatory to the PRI on 9 April 2021.Active OwnershipAVIs ESG monitoring system helps to iden

46、tify weaknesses in a company and empowers us to engage effectively where appropriate.Through constructive engagement,we encourage and expect investee companies to take meaningful action in remedying weaknesses in the context of long-term value creation.STRATEGYThe Companys strategy is to seek out-of

47、-favour companies whose assets are misunderstood by the market or under-researched,and which trade significantly below the estimated value of the underlying assets.A core part of this strategy is active engagement with management,in order to provide suggestions that could help narrow the discount an

48、d improve operations,thus unlocking value for shareholders.INVESTMENT APPROACHThe Companys assets are managed by AVI.AVI aims to deliver superior returns and specialises in finding companies that,for a number of reasons,may be selling on anomalous valuations.The Investment Manager has the flexibilit

49、y to invest around the world and is not constrained by any fixed geographic or sector weightings.There is no income target and no more than 10%of the Companys investments may be in unlisted securities.Over the past five years,there has been an average of 47 stocks held in the AGT portfolio.Website/H

50、ipgnosis Songs Fund:Case StudyAVI Global Trust plc/Annual Report 2024GIRFSORSI07SROverview of the yearThe world continues to be unstable,with conflict in the Middle East and Ukraine.Elsewhere,geopolitical tensions particularly between the United States and China continue to make news headlines.On a

51、more positive note,inflation appears to be better in check and we have seen central banks in the US and Europe begin the process of cutting interest rates,which should be positive for companies and markets.Against this volatile background,the Companys NAV total return for the year to 30 September 20

52、24(one of our three KPIs)was a creditable+13.7%,which was above the long-term average annual return and compares with+19.9%for our comparator benchmark index.Over the last five years the return has been+65.5%,compared to+63.3%for the current comparator benchmark(shareholders may recall that we chang

53、ed the benchmark last year1).Turning to the share price,I said at the half-year stage that having traded in a range of approximately 180p-200p since the beginning of 2022,the share price increased steadily following a dip in October 2023 and by the end of March it was over 230p.It was at a similar l

54、evel at the end of September,and the NAV per share was also little changed over the second half of our accounting year.For the year as a whole,the share price total return was 16.3%,as the discount closed marginally.The effectively flat return over the second six months does not tell the whole story

55、.The Japanese market,in particular,was very volatile in early August and AVI were able to take advantage of this,as they explain in their report.The Board is encouraged to see that the key driver of returns remains stock selection,demonstrating that the team at AVI remain consistent in their long-te

56、rm investment style.GRAHAM KITCHEN Independent Non-Executive ChairmanStrategic Report/Chairmans StatementJoined the Board in January 2019$1.The current comparator benchmark is the MSCI All Country World Index(adjusted net total returns).For periods up to 30 September 2023 it was the MSCI All Country

57、 World ex-US Index(adjusted net total returns).Over the five years to 30 September 2024,the total return of the previous benchmark was+32.4%.Against this volatile background,the Companys NAV total return for the year to 30 September 2024 was a creditable+13.7%.AVI Global Trust plc/Annual Report 2024

58、08Revenue and dividendsRevenue earnings for the year under review were 4.2 pence per share.At the half year stage we paid an interim dividend of 1.2 pence per share,which was the same as last year.The proposed final dividend is 2.55 pence per share.The total dividend for the year will therefore be 3

59、.75 pence per share,which I am pleased to report is an increase of 7.1%compared with the previous years total ordinary dividend of 3.5 pence2.The Board recognises that a dividend which is steady and able to rise over time is attractive to many shareholders but,as we have consistently said,the portfo

60、lio is managed primarily for capital growth.GearingOn 12 September 2024,we completed an agreement to issue further Japanese Yen(JPY)fixed rate unsecured debt.The new debt is JPY5bn,for a term of 15 years and at an annual interest rate of 2.28%.The debt is denominated in JPY and was equivalent to app

61、roximately 25.1m when issued.In recent years the Company has issued several tranches of fixed rate debt at attractive interest rates and our Investment Manager uses gearing flexibly to take advantage of investment opportunities.As well as providing funding at an attractive rate of interest,borrowing

62、 in Japanese Yen provides a natural hedge against exposure to the currency,as the borrowing offsets some of the exposure to JPY in the portfolio.As at 30 September 2024 net gearing,with debt at fair value,was 7.1%.AGT previously had a revolving credit facility with Scotiabank but this was terminated

63、 at the end of its contracted life in September 2024.Investment PolicyWe are seeking shareholder approval for revisions to our investment policy,which was driven by a review of ways in which AGT can implement gearing.The Directors have reviewed the Companys Investment Policy and are proposing that s

64、hareholders approve a revised policy at this years AGM.I would like to stress that there will be no change in the overall strategy that AVI takes in managing the investment portfolio.The proposed changes are designed to align the Investment Policy with current best practice and to clarify the approa

65、ch to spreading investment risk,investing in derivatives and to gearing.In particular,the level of gearing permitted under the Companys Articles of Association and first adopted several decades ago is much higher than would be considered acceptable in a modern investment policy.The Directors are the

66、refore proposing a limit on total gearing of 20%of net assets.The Company has had both short-and long-term debt for many years and AVI are experienced in managing gearing.In future,gearing will be permitted via the use of derivatives as well as conventional debt,but subject to an overall limit of 20

67、%total market exposure.The proposal to allow gearing via derivatives is intended to provide additional flexibility in the type of gearing used,particularly bearing in mind that interest rates have increased in recent years and the use of derivatives may prove to be more cost effective.Derivatives su

68、ch as total return swaps or options provide investment exposure to single stocks or groups of stocks where,depending on the derivative structure,movement in the value of the derivative(both up and down)may be higher than the movement in the related stock prices.Long-term shareholders will be aware t

69、hat the Company has invested in total return swaps on a number of occasions in recent years and the Directors are satisfied that AVI have the necessary experience and controls to invest in derivatives.We encourage all shareholders to vote in favour of this resolution at the AGM.Further details are s

70、et out on page 52.Share price rating and marketingAGT has a substantial marketing budget and the Board works closely with AVI as it seeks to generate demand for the shares.Each month AVI produces an informative factsheet which is available on our website and I encourage you to register on the site t

71、o receive these when they are published.AVI is also active in the media both traditional and increasingly social media as we seek to promote our investment proposition to a growing investor base.We were very pleased to hear that AGT had again won“Best Report and Accounts”in its category in the AICs

72、annual shareholder communications awards in September 2024.We believe that this award reflects our commitment to provide informative and interesting updates to our shareholders and I would like to thank our fund management team for their open and proactive approach to explaining their investment met

73、hodology and individual investments in the portfolio.The Board is pleased to note that our marketing efforts have resulted in a substantial increase over time in the number of shares owned via retail investment platforms,and that these platforms make up four of our top five shareholders.In common wi

74、th many investment trusts,our shares continued to trade at a persistent discount during the year.We use share buybacks when the discount is unnaturally wide and when the Board believes that buying back shares is in the best interests of shareholders.This is also something that our Investment Manager

75、 encourages for many of our investee companies.The discount is one of the three KPIs and the Board takes a very close interest in this.There is regular interaction between Board and Investment Manager on the subject,with independent advice from AGTs corporate brokers.There are periods when we buy ba

76、ck shares on most working days and,during the year under review,20.1 million shares were bought back,representing 4.4%of the shares in issue as at the start of the period.As well as benefiting shareholders by limiting the discount at which they could sell shares if they so wish,buying back shares at

77、 a discount also produced an uplift in net asset value to the benefit of continuing shareholders,of approximately 0.4%.The average discount over the year under review was 9.2%,compared with 10.0%for the preceding year.In April 2024 we announced that Panmure Liberum had been appointed as the Companys

78、 corporate broker.We have experienced a positive transition to Panmure Liberum who have introduced a more diverse range of potential investors in the last few months and we look forward to working closely with them going forward,particularly in seeking to find new shareholders.I would also like to t

79、hank our previous corporate brokers,Jefferies,for their help and support over the last several years.2.We also paid a special dividend of 0.2 pence per share last year,to distribute elements of revenue that the Directors consider to be one-off.AVI Global Trust plc/Annual Report 2024GIRFSORSI09SRStra

80、tegic Report/Chairmans Statement continuedIn the 2023 Annual Report I raised the issue of the unintended consequences on the investment trust industry of recent regulatory pronouncements relating to Consumer Duty in respect of cost disclosures.In particular,the inclusion of costs embedded in our und

81、erlying investee funds in the overall cost figures disclosed in relation to your Company was misleading.We were pleased and relieved to hear that the Financial Conduct Authority had issued a“forbearance”notice on managers disclosure of charges in regulated documents in September 2024,pending a revie

82、w of the relevant law and regulations.While,at the time of writing,there is some uncertainty as to how costs will be disclosed to investors by the investment trust industry going forward,we have reverted to publishing an Ongoing Charges Ratio which includes all of AGTs own running costs,which are ma

83、de up principally of its investment management fee and of the other costs of running the Company itself.Not all listed investment companies disclose their gross costs and so it is not possible to produce a comprehensive summary of the running costs of closed end funds in AGTs portfolio of investment

84、s.AGTs running costs are one of our KPIs and the Board carefully manages the Companys costs,seeking to balance a high quality of service with reasonable costs from our suppliers.The BoardThe Company is pleased to have met the target for at least 40%of individuals on the Board to be women but does no

85、t currently meet the targets for at least one senior Board position to be held by a woman and at least one individual on the Board to be from a minority ethnic background.The Directors have discussed whether to appoint an additional Director in order to comply with the guidelines on ethnic diversity

86、.The Directors concluded that a Board of five independent non-executive Directors is appropriate for an investment trust of the size and complexity of AGT and therefore that it would not be in shareholders best interests to incur fees for an additional Director in order to meet a target.Shareholders

87、 views on best practice will continue to be taken into full consideration when the Board next recruits a new Director.Annual General MeetingI am pleased to be able to invite all shareholders to attend our AGM at 11 Cavendish Square on Thursday 19 December 2024.We do recognise that some shareholders

88、may be unable to attend the AGM,and if you have any questions about the Annual Report,the investment portfolio or any other matter relevant to the Company,please write to us either via email at agmaviglobal.co.uk or by post to Link Company Matters Limited,Central Square,29 Wellington Street,Leeds,LS

89、1 4DL.If you are unable to attend the AGM,I urge you to submit your proxy votes in good time for the meeting,following the instructions enclosed with the proxy form.If you vote against any of the resolutions,we would be interested to hear from you so that we can understand the reasons behind any obj

90、ections.OutlookThis time last year I wrote that“The geopolitical and economic environment are undoubtedly challenging and the world is likely to be unstable for some time”and those words bear repetition this year.The level of geopolitical uncertainty could be exacerbated by the result of the US elec

91、tion.The opportunities that we reported last year have borne fruit in the returns produced over the year to the end of September 2024 but there is clearly more value to unlock.Markets are likely to remain volatile but our Investment Manager reports attractive discounts and an exciting range of prosp

92、ects.The Board is confident that we have a well-resourced,skilled and experienced manager who should continue to produce attractive returns for AGTs shareholders over the long term.Graham KitchenChairman12 November 2024Dividend track record()*0.00.51.01.52.02.53.03.54.04.55.0199619951994199319921991

93、19901989198819871986198519971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020222024*20232021Normal dividendsSpecial dividendsProposed ordinary dividends*Restated for Share Split*Relates to proposed dividends for the current yearAVI Global Trust plc/Annual

94、 Report 202410DIETEREN/BELRON Belron is the global number one operator in the Vehicle Glass Repair,Replacement,and Recalibration industry.Known as Autoglass in the UK and Safelite in the US,Belron is many multiples larger than competitors with 40%US market share,giving it significant scale advantage

95、s in terms of purchasing economies of scale and cost leadership,relationships with insurance partners who are industry gatekeepers,and technological investment,which has become increasingly relevant.We expect Belron to keep riding the tailwinds of increased windshield complexity and the requirement

96、for Advanced Driver Assistance System cameras to be recalibrated upon replacement.%of Net Assets:8.3%Source/Belron Group S.AGIRFSORSIAVI Global Trust plc/Annual Report 202411SRSR123456Strategic Report/Ten Largest Equity Investments57.2%*DIVERSIFIEDOur portfolio contains broad diversification to sect

97、ors and companiesSector breakdown:Communication Services:19%Consumer Discretionary:28%IT:11%Financials:7%Consumer Staples:14%Energy:3%Healthcare:4%Industrials:4%Materials:2%Real Estate:5%Utilities:1%Other:2%The top ten equity investments make up 57.2%of the net assets*,with underlying businesses spr

98、ead across a diverse range of sectors and regions.All discounts are estimated by AVI as at 30 September 2024,based on AVIs estimate of each companys net asset value.*For definitions,see Glossary on pages 101 to 105.*%of net assets.A seventh-generation Belgian family-controlled holding company whose

99、crown jewel asset is a 50%stake in Belron,the global no.1 operator in the Vehicle Glass Repair,Replacement and Recalibration industry.01.The Murdoch family-controlled holding company that was established in current form in 2013.A 62%listed stake in Australian-listed REA Group accounts for the bulk o

100、f News Corps market cap and masks an attractive collection of unlisted assets.In particular Dow Jones,a crown jewel asset that successfully evolved the Wall Street Journal into a thriving digital consumer and Professional Information business.02.French-listed holding company controlled by the mercur

101、ial Vincent Bollore.Bollore trades at a 40%discount to our estimated NAV,which is principally comprised of stakes in Universal Music Group,Vivendi,cash and self-ownership loops.We believe there are multiple potential catalysts on the horizon.06.Cordiant Digital Infrastructure is a London-listed clos

102、ed-ended fund which invests in various infrastructure assets such as data centres,telecom towers,and fibre-optic asset businesses predominantly in Emerging Europe.We invested into Cordiant at an unduly wide 40%discount driven by a rising yield environment and an unfair read-across from problems at i

103、ts closest peer.07.Dleteren Group Holding Company%of net assets8.3%Valuation91.8m Discount-41%Source/Dleteren Group S.ANews CorpHolding Company%of net assets7.5%Valuation83.5m Discount-46%Source/SOPA Images via Getty ImagesBollore Holding Company%of net assets5.2%Valuation57.3m Discount-40%Source/VW

104、 Pics via Getty ImagesCordiant Digital Infrastructure Closed-ended Fund%of net assets4.9%Valuation54.7m Discount-27%Source/Cordiant Digital Infrastructure LimitedAVI Global Trust plc/Annual Report 20241267891051.1%*Oakley Capital Investments(OCI)is a London listed closed-ended fund which invests in

105、the private funds run by Oakley Capital,a UK-based private equity firm.OCI owns a portfolio of fast-growing businesses in the consumer,education,services,and technology sectors.03.Chrysalis Investments is a London-listed closed-ended fund which invests in late-stage private companies.Chrysalis top f

106、ive companies represent 74%of its NAV,despite being written down significantly below previous funding rounds and being either profitable or funded to profitability.Chrysalis manager announced a new capital allocation policy in February 2024.04.London-listed closed-end fund managed by Swiss private e

107、quity manager Partners Group,which invests in global buyouts on a co-investment basis alongside Partners direct investing programmes.We invested following lethargic returns,concerns over governance,and suspension of the dividend which forced a sell-off.We have since proactively engaged with the boar

108、d on multiple matters.05.Rohto is a Japan-based manufacturer and marketer of cosmetics products and functional foods.Despite the companys superior operational efficiencies and profit margins versus peers,it trades at a heavy discount due to an unclear equity story,poor shareholder communication and

109、inefficient capital allocation.AVI believes that constructive engagement with management can help drive long-term value creation,in turn leading to a re-rating in the shares.08.FEMSA is a Mexican family-controlled holding company with roots dating back to the establishment of Mexicos first brewery i

110、n 1890.The bulk of the value lies in unlisted FEMSA Comercio,which primarily operates Oxxo-branded convenience stores across Mexico and Latin America.In 2023 the company completed a strategic review,simplifying its structure and generating considerable excess capital.Despite these significant stride

111、s,the shares still trade at a wide discount.09.Reckitt Benckiser is a UK-listed consumer goods conglomerate which owns a collection of trusted brands that exhibit meaningful barriers to entry,high margins,and attractive growth prospects.Already trading at a discounted valuation,the company was hit b

112、y a litigation shock which has pushed the shares to a decade low multiple and record discount to peers.10.Oakley Capital InvestmentsClosed-ended Fund%of net assets6.6%Valuation73.8m Discount-30%Source/Liberty Dental GroupChrysalis InvestmentsClosed-ended Fund%of net assets6.0%Valuation66.1m Discount

113、-36%Source/Starling Bank LimitedPartners Group Private EquityClosed-ended Fund%of net assets5.5%Valuation61.5m Discount-26%Source/Partners GroupRohto Pharmaceutical Asset-backed Special Situation%of net assets4.9%Valuation54.5m Discount-50%Source/Rohto Pharmaceutical Co.,Ltd.FEMSA Holding Company%of

114、 net assets4.2%Valuation47.2m Discount-29%Source/Comunicacin Corporativa FEMSAReckitt Benckiser GroupHolding Company%of net assets4.1%Valuation46.0m Discount-38%Source/Bloomberg via Getty ImagesAVI Global Trust plc/Annual Report 2024GIRFSORSI13SRStrategic Report/Investment PortfolioCompanyPortfolio

115、classification%of investee company IRR(%,)1ROI(%,)2Cost0003Equity Exposure0004%of net assetsDIeteren GroupHolding Company1.1%11.4%10.7%84,420 91,750 8.3%News CorpHolding Company1.1%10.7%10.6%76,395 83,465 7.5%Oakley Capital InvestmentsClosed-ended Fund8.3%22.2%129.1%30,163 73,808 6.6%Chrysalis Inves

116、tmentsClosed-ended Fund11.9%nm17.8%56,140 66,119 6.0%Partners Group Private EquityClosed-ended Fund10.0%10.5%14.9%58,183 61,539 5.5%BolloreHolding Company0.4%0.2%0.2%57,764 57,285 5.2%Cordiant Digital InfrastructureClosed-ended Fund8.3%nm30.6%43,156 54,706 4.9%Rohto PharmaceuticalAsset-backed Specia

117、l Situation1.2%nm12.1%48,846 54,478 4.9%FEMSAHolding Company0.3%14.9%40.8%38,306 47,184 4.2%Reckitt Benckiser GroupHolding Company0.1%nm2.4%45,453 45,990 4.1%Top ten investments73.3%538,826636,32457.2%EntainHolding Company0.8%nm-10.1%46,809 41,312 3.7%Aker ASAHolding Company1.4%15.3%64.2%49,864 41,2

118、67 3.7%Apollo Global Management AHolding Company0.1%32.5%111.6%19,928 40,899 3.7%Harbourvest Global Private EquityClosed-ended Fund2.2%nm7.2%37,525 39,901 3.6%Christian DiorHolding Company0.0%20.3%90.6%21,120 33,712 3.0%IAC IncHolding Company1.0%-19.6%-40.8%64,482 33,188 3.0%Toyota IndustriesAsset-b

119、acked Special Situation0.2%nm-13.5%35,289 30,160 2.7%GCP Infrastructure InvestmentsClosed-ended Fund4.4%nm22.6%26,088 29,982 2.7%Dai Nippon PrintingAsset-backed Special Situation0.4%23.3%23.9%23,832 29,222 2.6%Nihon KohdenAsset-backed Special Situation1.5%8.3%11.7%25,796 28,907 2.6%Top twenty invest

120、ments99.2%889,559 984,874 88.5%Irish Residential PropertiesAsset-backed Special Situation6.3%nm-9.2%28,020 25,055 2.3%EXORHolding Company0.1%11.0%45.1%13,574 22,523 2.0%Third Point InvestorsClosed-ended Fund4.1%4.6%22.6%17,263 21,273 1.9%Frasers GroupHolding Company0.5%nm-2.5%20,811 20,301 1.8%Symph

121、ony International HoldingsClosed-ended Fund15.7%3.6%20.2%26,636 18,836 1.7%Abrdn European Logistics IncomeClosed-ended Fund6.5%nm7.6%15,619 16,272 1.5%KyoceraAsset-backed Special Situation0.1%nm-21.3%18,602 14,534 1.3%WacomAsset-backed Special Situation2.7%-9.8%-23.2%19,356 13,824 1.2%SK KakenAsset-

122、backed Special Situation1.8%-6.9%-32.4%19,056 12,130 1.1%Net Lease Office PropertiesHolding Company3.6%nm1.9%11,823 12,021 1.1%Top thirty investments103.0%1,080,319 1,161,643 104.4%AVI Global Trust plc/Annual Report 202414CompanyPortfolio classification%of investee company IRR(%,)1ROI(%,)2Cost0003Eq

123、uity Exposure0004%of net assetsTSI HoldingsAsset-backed Special Situation3.3%22.4%27.1%9,652 11,981 1.1%Toyo Suisan KaishaAsset-backed Special Situation0.2%nm0.0%11,531 11,509 1.0%KonishiAsset-backed Special Situation2.0%5.2%26.5%8,107 8,985 0.8%VEFHolding Company2.3%2.5%4.2%4,525 4,489 0.4%Seraphim

124、 Space InvestmentClosed-ended Fund2.6%9.0%16.4%2,950 3,370 0.3%JPEL Private Equity Closed-ended Fund18.4%19.6%97.4%1,219 2,180 0.2%Better Capital(2009)Closed-ended Fund17.4%22.0%41.1%1,962 903 0.1%Third Point Investors Private InvestmentsClosed-ended Fund0.0%563 475 0.0%Ashmore Global Opportunities

125、GBPClosed-ended Fund0.0%4.0%8.4%22 140 0.0%73.3%111,264 Equity investments at fair value 1,120,850 1,205,675 108.3%1 Internal Rate of Return.Calculated from inception of AGTs investment.Refer to Glossary on pages 101 to 105.Where it is not possible to report a meaningful figure for the IRR,due to th

126、e investment having been held less than 12 months,this is indicated as“nm”.2 Return on investment.Calculated from inception of AGTs investment.Refer to Glossary on pages 101 to 105.3 Cost.Refer to Glossary on pages 101 to 105.4 The fair value column of the total return swaps is determined based on t

127、he difference between the notional transaction price and market value of the underlying shares in the contracts(in effect the unrealised gains/(losses)on the exposed long and short total return swap positions).The equity exposure is the cost of purchasing the securities held through long total retur

128、n swap positions directly in the market and at the Balance Sheet date would be a cost of 58,296,000.If the long positions were closed at 30 September 2024,this would result in a loss of 2,877,000.The notional price of selling the securities to which exposure was gained through the short total return

129、 swaps at the Balance Sheet date would be 53,100,000.If the short positions were closed on 30 September 2024,this would result in a loss of 931,000.In the case of long and short total return swaps it is the market value of the underlying shares to which the portfolio is exposed via the contract.Leve

130、l 3 investment(see note 15).*The total fair value of total return swap assets of long and short positions is 606,000.*The total fair value of total return swap liabilities of long and short positions is 4,414,000.*Softbank Group is held via a long total return swap.Hedges are held against the positi

131、on via short total return swaps on five of its listed underlying holdings:Arm Holdings,Coupang,Deutsche Telekom,Softbank Corp&T-Mobile(accounting for 86%of Softbank Groups NAV at 30 September 2024).For further explanation on our position in Softbank Group,please refer to page 33.Fair value and gross

132、 market exposure of investments4Equity exposure 000Fair value000%of net assetsEquity Investments1,205,6751,205,675108.3%Total return swap long positionsSoftbank Group*Asset-backed Special Situation58,296(2,877)-0.3%58,296(2,877)-0.3%Softbank Group total return swap short positions*Arm HoldingsOperat

133、ing Company(37,666)606 0.1%CoupangOperating Company(1,374)(181)0.0%Deutsche TelekomOperating Company(1,885)(317)0.0%Softbank CorpOperating Company(7,164)(382)0.0%T-MobileOperating Company(5,011)(657)-0.1%(53,100)(931)0.0%5,196(3,808)-0.3%Investments and total return swaps1,210,8711,201,867 108.0%Oth

134、er net current assets less current liabilities73,2296.6%Non-current liabilities(162,371)-14.6%Net assets 1,112,725 100.0%AVI Global Trust plc/Annual Report 2024GIRFSORSI15SRStrategic Report/KPIs and Principal RisksThe Companys Board of Directors meets regularly and at each meeting reviews performanc

135、e against a number of key measures.In selecting these measures,the Directors considered the key objectives and expectations of typical investors in an investment trust such as the Company.NAV total return*The Directors regard the Companys NAV total return as being the overall measure of value delive

136、red to shareholders over the long term.Total return reflects both the net asset value growth of the Company and also dividends paid to shareholders.The Investment Managers investment style is such that performance may deviate materially from that of any broad-based equity index.The Board considers t

137、he most useful comparator to be the MSCI All Country World Index.Over the year under review,the benchmark increased by+19.9%on a total return basis and over ten years it has increased by+11.5%on an annualised total return basis.A full description of performance and the investment portfolio is contai

138、ned in the Investment Review,commencing on page 24.Discount*The Board believes that an important driver of an investment trusts discount or premium over the long term is investment performance.However,there can be volatility in the discount or premium.Therefore,the Board seeks shareholder approval e

139、ach year to buy back and issue shares,with a view to limiting the volatility of the share price discount or premium.During the year under review,no shares were issued and 20.1m shares were bought back,adding an estimated 0.4%to net asset value per share to the benefit of continuing shareholders.The

140、shares were bought back at a weightedaverage discount of 9.6%.Ongoing Charges Ratio*The Board continues to be conscious of expenses and aims tomaintain a sensible balance between good service and costs.In reviewing charges,the Boards Management Engagement Committee reviews in detail each year the co

141、sts incurred and ongoing commercial arrangements with each of the Companys key suppliers.The majority of the Ongoing Charges Ratio is the cost of the fees paid to the Investment Manager.This fee is reviewed annually.For the year ended 30 September 2024,the Ongoing Charges Ratio was 0.87%,up very sli

142、ghtly from 0.86%in the year to 30 September 2023.These running costs in monetary terms amounted to 9.6m in 2024(2023:8.7m).The Board notes that the UK investment management industry uses various metrics to analyse the ratios of expenses to assets.In analysing the Companys performance,the Board consi

143、ders an Ongoing Charges Ratio which compares the Companys own running costs with its assets.In this analysis the costs of servicing debt and certain non-recurring costs are excluded.These are accounted for in NAV total return and so form part of that KPI.Further,in calculating a KPI the Board does n

144、ot consider it relevant to consider the management fees of any investment company which the Company invests in,as the Company is not a fund of funds and to include management costs of some investee companies but not of others may create a perverse incentive for the Investment Manager to favour those

145、 companies which do not have explicit management fees.Key Performance IndicatorsNAV total return*:+13.7%Discount,Year-End*:9.0%Ongoing Charges Ratio*(year ended 30 Sept):0.87%1 Year10 Years(Annualised)+10.2%+13.7%2023 10.9%2024 9.0%2024 0.87%2023 0.86%*For all Alternative Performance Measures includ

146、ed in this Strategic Report,please see definitions in the Glossary on pages 101 to 105.AVI Global Trust plc/Annual Report 202416When considering the total return of the investments,the Board must also take account of the risk which has been taken in order to achieve that return.There are many ways o

147、f measuring investment risk,and the Board takes the view that understanding and managing risk is much more important than setting any numerical target.In running an investment trust we face different types of risk and some are more acceptable than others.The Board believes that shareholders should u

148、nderstand that,by investing in a portfolio of equity investments invested internationally and with some gearing,they accept that there may be some loss in value,particularly in the short term.That loss in value may come from market movements and/or from movements in the value of the particular inves

149、tments in our portfolio.We aim to keep the risk of loss under this particular heading within sensible limits,as described below.On the contrary,we have no tolerance for the risk of loss due to,for example,theft or fraud.The Board looks at risk from many different angles,an overview of which is set o

150、ut on the following pages.The Directors carry out regular reviews of the emerging and principal risks facing the Company,including those that would threaten its business model,future performance,solvency or liquidity.The Board confirms that a robust assessment of these risks has been carried out dur

151、ing the year under review.The approach to monitoring and controlling risk is not rigid.The Board aims to think not only about the risks that it is aware of and has documented,but also of emerging and evolving risks.The Board believes that managing risk is the task of everyone involved in the managem

152、ent of the Company:the Board,the Investment Manager,the Administrators and other service providers all have a role in thinking about risk,challenging perceptions and being alert to emerging risks.The objective of these assessments is not to be prescriptive,but to understand levels of risk and how th

153、ey have changed over time.The purpose of this focus is to ensure that the returns earned are commensurate with the risks assumed.During the year,the Audit Committee carried out a detailed review of the risk matrix which is used as a tool to monitor risks and agreed to modify its approach to enable t

154、he Board to better focus on key risks.The Board has assessed the risks which the Company faces under a number of headings.Pressure on the discount,a previously identified principal risk,remained high during the year.This was partly due to heightened geopolitical and macroeconomic risk,along with the

155、 effects of interpretations of the new UK Consumer Duty regulations,as set out in last years Annual Report.The Board regularly reviewed developments in the UK cost disclosure regime.In particular,the Board and Investment Manager focused on the availability of the Companys shares on online share deal

156、ing platforms and the resulting effects on demand for the shares.While the forbearance notice issued by the Financial Conduct Authority in September 2024 alleviated some issues,the approach to cost disclosure which the investment trust industry will ultimately adopt remains uncertain.A summary of th

157、e key risks and mitigating actions is set out in the table on the following pages.Shareholders should be aware that no assessment of this nature can be guaranteed to predict all possible risks;the objective is to assess the risks and determine mitigating actions.Principal and Emerging RisksRisk Tole

158、rance and Mitigating ActionsRisk Level/MovementLoss of value portfolio performanceThe market or the Companys portfolio could suffer a prolonged downturn in performance.There will be periods when the investment strategy underperforms in comparison to its benchmark and its peer group,and when it resul

159、ts in a decline in value.The Board accepts that there is a risk of loss of value by investing in listed equities,particularly in the short term.The Board monitors performance at each Board meeting,and reviews the investment process thoroughly at least annually.The Investment Manager has a clear inve

160、stment strategy,as set out in the Investment Review.Conventional wisdom holds that the most effective way of reducing risk is to hold a diversified portfolio of assets.The Company typically holds 25-35 core positions.It is important to note that,in line with its investment objective,the Companys hol

161、dings are mostly in stocks which are themselves owners of multiple underlying businesses.Thus,the portfolio is more diversified on a look-through basis than if it were invested in companies with a single line of business.This diversification is evident at country,sector and currency levels.A key ele

162、ment of the Investment Managers approach is to consider the way in which the portfolio is balanced and to ensure that it does not become overly dependent on one business area,country or investment theme.The Company,through the Investment Managers compliance function and the Administrators independen

163、t checks,has a robust system for ensuring compliance with the investment mandate.OPrincipal and Emerging RisksRisk Level Key:High Medium LowMovement Key:F Increased O Medium G LowAVI Global Trust plc/Annual Report 2024GIRFSORSI17SRStrategic Report/KPIs and Principal Risks continuedPrincipal and Emer

164、ging RisksRisk Tolerance and Mitigating ActionsRisk Level/MovementGeopolitical and macroeconomicThe net asset value will be affected by general market conditions which in turn can be affected by extraneous events such as the Russian invasion of Ukraine in 2022,or the escalating conflict in the Middl

165、e East.Macroeconomic uncertainty,such as the potential for increased US-China trade disputes following the US election or the continued impact of Brexit,can heighten the previously identified risk of higher levels of inflation,cause supply chain disruption and impact interest rate movements.The Dire

166、ctors assessment under this heading was already classified as high and it has increased further during the year.Geopolitical tensions have significantly impacted global trade since the Russian invasion of Ukraine in 2022.The impact of continued conflict is likely to create environments which have no

167、t been experienced in developed economies for many years.Given that markets do not operate in a vacuum,this can in turn affect asset valuations.The Investment Manager carries out thorough,regular and detailed analyses of investee companies,and takes full account of the likely effects of the macroeco

168、nomic environment,the ongoing conflicts in Ukraine and the Middle East and tension over international trade when reviewing the investment portfolio and potential investments.The Company has no investments in Russia,Ukraine,Palestine or Israel.While the valuation of the portfolio is likely to be affe

169、cted by general market movements,the underlying assets are well diversified by geography and type of company.FGearingWhile potentially enhancing returns over the long term,the use of gearing makes investment returns more volatile and exacerbates the effect of any fall in portfolio value.There are co

170、venants attached to the Loan Notes;in extreme market conditions,these could be breached and require early repayment,which could be expensive.The Board decided to take on borrowing because it believes that the Investment Manager will produce investment returns which are higher than the cost of debt o

171、ver the medium to long term and,therefore,that shareholders will benefit from gearing.In taking on debt,we recognise that higher levels of gearing produce higher risk.While gearing should enhance investment performance over the long term,it will exacerbate any decline in asset value in the short ter

172、m.It is possible(but,on the basis of past returns,it is considered unlikely)that the investment returns will not match the borrowing cost over time,and therefore the gearing will be dilutive.The Board manages this risk by setting the Companys gearing at a prudent level,and the covenants are set at l

173、evels with substantial headroom.In common with other investment trusts,we also mark the value of debt to its estimated fair value for the purposes of measuring investment performance as part of the Key Performance Indicators*,which makes the value ascribed to the debt subject to changes in interest

174、rates and so makes our published NAV per share more volatile than would otherwise be the case.However,if we continue with the debt to maturity,it will be repaid at its par value,notwithstanding any changes in fair value over its life.The values of loans denominated in currencies other than Sterling

175、will fluctuate with currency movements and,if the exchange rate of those currencies relative to Sterling increases,then in isolation this will have the effect of reducing NAV per share.However,we have certain assets denominated in the same overseas currencies as these tranches of debt,which would in

176、crease in value in Sterling terms if the exchange rates increase,enabling us to offset the debt position by creating a natural hedge.OForeign exchangeThe portfolio has investments in a number of countries,and there is a risk that the value of local currencies may decline in value relative to Sterlin

177、g.Foreign exchange risk is an integral part of a portfolio which is invested across a range of currencies.This risk is managed by the Investment Manager mainly by way of portfolio diversification,but the Investment Manager may,with Board approval,hedge currency risk.The Company did not engage in any

178、 currency hedging during the year under review and has not done so in recent years.However,as described above,borrowing in foreign currencies provides a natural hedge against currency risk in situations where the Company holds investments denominated in the borrowed currency.As at 30 September 2024,

179、the Company had 50m(41m)of borrowing and investments denominated in Euros whose value exceeded that of this borrowing.Furthermore,the Company had JPY17.5bn(91m)of borrowing and investments denominated in Japanese Yen whose value exceeded that of this borrowing.In addition the Company had a loan of 3

180、0m,the primary currency of the Company,and holds investments denominated in GBP of a greater value.O*The value of long debt is marked to its fair value for the purpose of measuring investment performance but,as required by the relevant accounting standards,all debt is recognised on the balance sheet

181、 at amortised cost.Principal and Emerging Risks continuedAVI Global Trust plc/Annual Report 202418Principal and Emerging RisksRisk Tolerance and Mitigating ActionsRisk Level/MovementLiquidity of investmentsWhile the investment portfolio is made up predominantly of liquid investments,there is a possi

182、bility that individual investments may prove difficult to sell at short notice.The Investment Manager takes account of liquidity when making investments and monitors the liquidity of holdings as part of its continuing management of the portfolio.The liquidity and concentration of AVIs holdings acros

183、s all of its managed portfolios are monitored and reported at regular Board meetings.It is important to note that the potential for the return of capital from investee companies by means of special dividends and the partial or full redemption of shares is a key element of the Investment Managers str

184、ategy,and so trading on a stock exchange is not the only source of liquidity in the portfolio.OKey staffManagement of the Companys investment portfolio and other support functions rely on a small number of key staff.The Investment Manager and key suppliers have staff retention policies and contingen

185、cy plans.The Boards Management Engagement Committee reviews all of its key suppliers at least once per year.ODiscount ratingThe shares of investment trusts frequently trade at a discount to their published net asset value.The value of the Companys shares will be subject to the interaction of supply

186、and demand,prevailing net asset values and the general perceptions of investors.The share price will accordingly be subject to unpredictable fluctuations,and the Company cannot guarantee that the share price will appreciate in value.The Company may become unattractive to investors,leading to pressur

187、e on the share price and discount.This may be due to any of a variety of factors,including investment performance or regulatory change.Any companys share price is affected by supply and demand for its shares and fluctuations in share price are a risk inherent in investing in the Company.In seeking t

188、o mitigate the discount,the Board looks at both supply and demand for the Companys shares.The Board seeks to manage the risk of any widening of the discount by regularly reviewing the level of discount at which the Companys shares trade.If necessary and appropriate,the Board may seek to limit any si

189、gnificant widening through measured buybacks of shares.During the year under review,in common with most of the investment trust sector,the Companys shares traded at a persistent discount and share buybacks were continued to mitigate the pressure on the share price rating.The Investment Manager has a

190、 comprehensive marketing,investor relations and public relations programme which seeks to inform both existing and potential investors of the attractions of the Company and the investment approach.We have a marketing budget to meet third-party costs in marketing our shares.OOutsourcingThe Company ou

191、tsources all of its key functions to third parties,in particular the Investment Manager,and any control failures or gaps in the systems and services provided by third parties could result in a financial loss or damage to the Company.The Board insists that all of its suppliers(and,in particular,the I

192、nvestment Manager,the Custodian,the Depositary,the Company Secretary,the Administrator and the Registrar)have effective control systems which are regularly reviewed.The Board assesses thoroughly the risks inherent in any change of supplier,including the internal controls of any new supplier.OESGTher

193、e is increasing focus on investment companies role in influencing investee companies approach to climate change and broader ESG issues.The Board maintains a strategic overview of the portfolio,including ESG criteria.Management of the portfolio,including the integration of ESG considerations into por

194、tfolio construction,is delegated to AVI,the Investment Manager.As a responsible steward of assets,AVI fully supports policies and actions implemented by its portfolio companies to support a sustainable environment.AVI engages actively with its portfolio companies,and looks to understand how each com

195、pany approaches stewardship of the environment,as well as seeking to identify any unacceptable practices that are detrimental to the environment or climate.OThe principal financial risks are examined in more detail in note 15 to the financial statements on pages 78 to 82.AVI Global Trust plc/Annual

196、Report 2024GIRFSORSI19SRStrategic Report/Responsible BusinessENVIRONMENTAL,SOCIAL AND GOVERNANCE(ESG)ISSUESBoth the Board and AVI recognise that social,human rights,community,governance and environmental issues have an effect on its investee companies.The Board firmly supports AVI in its belief that

197、 good corporate governance will help to deliver sustainable long-term shareholder value.AVI is an investment management firm that invests on behalf of its clients and its primary duty is to produce returns for its clients.AVI seeks to exercise the rights and responsibilities attached to owning equit

198、y securities in line with its investment strategy.A key component of AVIs investment strategy is to understand and engage with the management of public companies.AVIs Environmental,Social and Governance Policy,which is summarised on pages 26 to 28,recognises that shareholder value can be enhanced an

199、d sustained through the good stewardship of executives and boards.It therefore follows that in pursuing shareholder value AVI will implement its investment strategy through proxy voting and active engagement with management and boards.The Company is an investment trust and so its own direct environm

200、ental impact is minimal.The Company has no greenhouse gas emissions to report from its operations,nor does it have responsibility for any other emissions-producing sources under the Companies Act 2006(Strategic Report and Directors Reports)Regulations 2013.As discussed on page 60,as an investment tr

201、ust without employees,the Company is not required to report against the TCFD framework.The Company has no employees.The Companys principal suppliers,which are listed opposite the inside back cover of this report,have confirmed that they comply with the provisions of the UK Modern Slavery Act 2015.Th

202、e Directors do not have service contracts.There are five Directors,three male and two female.Further information on the Boards Diversity policy and the policy on recruitment of new Directors is contained on pages 55 to 56.FUTURE STRATEGYThe Board and the Investment Manager have long believed in thei

203、r focus on investment in high-quality undervalued assets and that,over time,this style of investment has been well rewarded.The Companys overall future performance will,inter alia,be affected by:the Investment Managers decisions;investee companies earnings,corporate activity,dividends and asset valu

204、es;and by stock market movements globally.Stock markets are themselves affected by a number of factors,including:economic conditions;central bank and other policymakers decisions;political and regulatory issues;and currency movements.The Companys performance relative to its peer group and benchmark

205、will depend on the Investment Managers ability to allocate the Companys assets effectively,and manage its liquidity or gearing appropriately.More specifically,the Companys performance will be affected by the movements in the share prices of its investee companies in comparison to their own net asset

206、 values.The overall strategy remains unchanged.Approval of Strategic ReportThe Strategic Report has been approved by the Board and is signed on its behalf by:Graham KitchenChairman12 November 2024AVI Global Trust plc/Annual Report 202420Strategic Report/Section 172 StatementCulture and ValuesThe Dir

207、ectors overarching duty is to promote the success of the Company for the benefit of investors,with due consideration of other stakeholders interests.The Companys approach to investment is explained in the Investment Managers Review.The Directors aim to achieve a supportive business culture combined

208、with constructive challenge and to provide a regular flow of information to shareholders and other stakeholders.The Company has a number of policies and procedures in place to assist with maintaining a culture of good governance,including those relating to diversity,bribery(including the acceptance

209、of gifts and hospitality),tax evasion,conflicts of interest,and dealings in the Companys shares.The Board assesses and monitors compliance with these policies regularly through Board meetings and the annual evaluation process.The Board seeks to appoint the most appropriate service providers for the

210、Companys needs and evaluates the services on a regular basis.The Board considers the culture of the Investment Manager and other service providers through regular reporting and by receiving regular presentations,as well as through ad hoc interaction.The Board also seeks to control the Companys costs

211、,thereby enhancing performance and returns for the Companys shareholders.The Directors consider the impact on the community and environment.The Board and Investment Manager work closely together in developing and monitoring the Companys approach to environmental,social and governance matters.Section

212、 172 of the Companies Act 2006(Companies Act)states that:A Director of a company must act in the way he considers,in good faith,would be most likely to promote the success of the company for the benefit of its members as a whole,and in doing so have regard(amongst other matters)to the following six

213、items.Further,the Companies(Miscellaneous Reporting)Regulations 2018 require Directors to explain how they have discharged their duties under section 172(1)of the Companies Act 2006 in promoting the success of their companies for the benefit of“members as a whole”.The Boards approach is described un

214、der“Stakeholders”on the next page.Its views are set out in the table:Matters for the Board to considerApproach taken by the Board(a)the likely consequences of any decision in the long termIn managing the Company,the aim of the Board and of the Investment Manager is always to ensure the long-term sus

215、tainable success of the Company and,therefore,the likely long-term consequences of any decision are a key consideration.In managing the Company during the year under review,we acted in the way which we considered,in good faith,would be most likely to promote the Companys long-term sustainable succes

216、s and to achieve its wider objectives for the benefit of our shareholders as a whole,having had regard to our wider stakeholders and the other matters set out in section 172 of the Companies Act.(b)the interests of the companys employeesThe Company does not have any employees.(c)the need to foster t

217、he companys business relationships with suppliers,customers and othersThe Boards approach is described under“Stakeholders”on the next page.(d)the impact of the companys operations on the community and the environmentThe Board takes a close interest in ESG issues and sets the overall strategy.As mana

218、gement of the portfolio is delegated to the Investment Manager,the practical implementation of policy rests with AVI.A description of AVIs ESG policy is set out on pages 26 to 28.(e)the desirability of the company maintaining a reputation for high standards of business conductThe Boards approach is

219、described under“Culture and Values”below.(f)the need to act fairly as between members of the companyThe Boards approach is described under“Stakeholders”on the next page.AVI Global Trust plc/Annual Report 2024GIRFSORSI21SRStrategic Report/StakeholdersIn line with the Companies(Miscellaneous Reporting

220、)Regulations 2018,during the year under review the Board considered in detail which individuals and organisations should be regarded as stakeholders.Its views are set out in the table below:StakeholdersWhy they are importantBoard EngagementShareholdersAs the Company is an investment trust,its shareh

221、olders are,in effect,also its customers.Continued shareholder support and engagement are critical to the existence of the Company and to the delivery of the long-term strategy.The Company has a large number of shareholders,including professional and private investors.Over the years,the Company has d

222、eveloped various ways of engaging with its shareholders,in order to gain an understanding of their views.These include:Annual General Meeting The Company welcomes attendance from shareholders at AGMs.At the AGM,the Investment Manager always delivers a presentation and all shareholders have an opport

223、unity to meet the Directors and ask questions;Information from the Investment Manager The Investment Manager provides written reports with the annual and interim results,as well as monthly Factsheets which are available on the Companys website.Their availability is announced via the stock exchange;I

224、nvestor Relations updates At every Board meeting,the Directors receive updates on the share trading activity,share price performance and any shareholders feedback,as well as any publications or comments in the press;Working with external partners The Board receives regular updates from the Corporate

225、 Broker and also engages some external providers,such as communications advisers,to obtain a detailed view on specific aspects of shareholder communications;Feedback from shareholdersThe Board values the feedback and questions that it receives from shareholders and takes note of individual sharehold

226、ers views in arriving at decisions which are taken in the best interests of the Company and of shareholders as a whole.The Chairman welcomes meetings with major shareholders,as well as enquiries and feedback from all shareholders.The Chairman can also be contacted via email at chairaviglobal.co.uk o

227、r by letter to the Companys registered office.The Chairman,the Senior Independent Director or any other member of the Board can be contacted via either the Company Secretary or the Corporate Broker,both of which are independent of the Investment Manager.Recent examples of decisions resulting from fe

228、edback from shareholders and discussions of proposals to enhance shareholders best interests were:the change of the Companys name in May 2019;rebalancing of the proportion of the dividend paid as an interim dividend in the 2019/2020 accounting year;the Share Split which was completed in January 2022

229、;cancellation of some of the shares held in treasury in February 2022;the change of comparator benchmark in 2023;and the proposal to change the Companys stated Investment Policy at this years AGM.LendersThe Company has raised capital in the form of debt from a small group of lenders.Although the Com

230、pany is not dependent on debt funding to maintain its operations,continued support from lenders is important to maintain the financial stability of the Company and flexibility in the investment portfolio.All of the Companys debt is subject to contractual terms and restrictions.We have an established

231、 procedure to report regularly to our lenders on compliance with debt terms.It is our policy that all interest and repayments of principal will continue to be made in full and on time.In line with these considerations and to take advantage of attractive rates of interest,the decision was made to tak

232、e out a further JPY5.0bn fixed rate unsecured debt(as discussed on page 9)during the year.AVI Global Trust plc/Annual Report 202422StakeholdersWhy they are importantBoard EngagementService ProvidersThe Investment ManagerThe Investment Managers performance is critical for the Company to deliver its i

233、nvestment strategy and meet its objective.Maintaining a close and constructive working relationship with the Investment Manager is crucial as the Board and the Investment Manager aim to continue to achieve long-term returns in line with the Companys investment objective.The Board seeks to:Encourage

234、open discussion with the Investment Manager;Ensure that the interests of shareholders and of the Investment Manager are aligned and adopt a tone of constructive challenge;Draw on Board members individual experience to support the Investment Manager in the sound,long-term development of investment st

235、rategy and,where relevant,the Investment Managers business and resources.The Board recognises that the Company is the largest client of the Investment Manager,and so the long-term success of the Investment Manager is closely aligned to that of the Company.The Company Secretary attends all Board and

236、Committee meetings.The Management Engagement Committee undertakes an annual review of the key service providers,encompassing performance,level of service and cost.Each provider is an established business and each is required to have in place suitable policies to ensure that they maintain high standa

237、rds of business conduct,treat customers fairly and employ corporate governance best practice.Our policy is that all bills and expense claims from suppliers are paid in full,on time and in full compliance with the relevant contracts.The Administrator and Company SecretaryThe Administrator and Company

238、 Secretary are key to the effective running of the Company.Other key service providersThe Company has a number of other key service providers,each of which provides a vital service to the Company and ultimately to its shareholders.While all service providers are important to the operations of the Co

239、mpany,in this context the other key service providers are the Custodian,Depositary and Registrar.AVI Global Trust plc/Annual Report 2024GIRFSORSI23SRInvestment Review/Investment Managers ReviewAbout Asset Value InvestorsOUR EDGEAsset Value Investors specialises in finding companies which have been o

240、verlooked or under-researched by other investors.Investments that for one reason or another are priced below their true value but can be made into profitable performers.AVI believes its strategy and investment style differentiate it from other managers in the market because of the following:01.39 ye

241、ars experience of long-term outperformance following our distinctive investment style(annualised NAV total returns*of+11.6%since 1985).02.AVI actively looks for the catalyst within a company which will drive fundamental change.03.AVI seeks to improve corporate governance through active engagement to

242、 unlock potential shareholder value.*Refer to Glossary on pages 101 to 105.Please visit our website for more information:www.aviglobal.co.ukWILFRID CRAIGIE ON THE ATTRACTIVENESS OF HOLDING COMPANIESWhat is AVIs history of investing in holding companies?Ever since AVI were appointed as the investment

243、 manager in 1985,family-controlled holding companies have accounted for a significant portion of the portfolio.At the time there were several French holding companies that had complex cascade structures that attracted discounts upon discount.We were able to align capital with thoughtful long-term or

244、ientated families that owned attractive quality assets,with significant upside potential from discount narrowing and corporate restructuring.These fundamental attractions remain at the heart of our approach today.How has AVIs approach evolved over time?The basic tenets of the approach remain unchang

245、ed.We are looking to buy durable,quality businesses,that are growing in value;that trade at deeply discounted valuations;and where there is a potential catalyst or event to unlock and grow value.Within that though,I would say that in recent years the third leg the event or catalyst has become an inc

246、reasingly prevalent part of the strategy and something upon which we have placed increased emphasis.Schibsted and FEMSA are prime examples of this,as they both took significant steps to simplify their corporate structures,narrowing the discounts at which they trade.In the current portfolio,News Corp

247、,DIeteren and Bollore all fit this bill.What are your observations on the current environment?To us,it is interesting that whilst global equity markets have been led to new highs by an increasingly narrow and expensive band of US technology companies,such ebullience is not found in the niche parts o

248、f the market on which we focus.Holding company discounts are wide by historical standards and for many investors,holding companies simply arent relevant.For us,however,we believe this is a stockpickers market and one where a focus on thorough fundamental research,catalysts and events will be key to

249、unlocking value.QQQAAAAfter nearly 40 years why does the opportunity persist?Whilst we are taught that equity markets are largely efficient,our experience shows that certain types of companies such as holding companies attract inefficiencies and are prone to mispricing.We believe there are many stru

250、ctural reasons for this.First and foremost:complexity.Holding companies can be complex beasts and this runs in contrast to what equity markets and investors desire,which is simplicity.The types of company on which we focus are often conglomerates in nature,with multiple and varied businesses;they ma

251、y have a dual-share class;they may form part of a cascade structure;the accounting often doesnt match economic reality,for instance if a company owns a listed stake in another entity which accounts for a large proportion of its enterprise value,but the earnings are not consolidated.All these issues

252、are compounded by a lack of research coverage.The companies that we own typically have little or no sell side coverage.And this really comes to the fore with unlisted assets.We often do our best work where we can build a high conviction differentiated view on the value of an unlisted business,and th

253、en look for an event or catalyst,such as an IPO,sale,or corporate simplification that will make the market wake up and re-value it.Finally,we believe the market fundamentally misunderstands the attractions of investing alongside families in controlled companies,with the consensus view being one of s

254、cepticism.We believe the ability to think in generations not quarters is a real competitive advantage and there is significant literature on the outperformance of family-controlled businesses to back this up.WILFRID CRAIGIESenior Investment Analyst$QAAVI Global Trust plc/Annual Report 202424Overview

255、 of AVIs Investment PhilosophyThe aim of AVI is to deliver superior investment returns.AVI specialises in investing in securities that for a number of reasons may be selling on anomalous valuations.Our focus on buying high quality,growing businesses trading at wide discounts to their net asset value

256、(NAV)has served us well over the long term.There are periods of time,however,when our style is out of favour and the types of companies in which we invest are ignored by the broader market.This requires us to be patient and to remain true to our style,so that when other investors begin to appreciate

257、 the value in those companies,we are well placed to benefit.In the short term,this means that there could be some volatility in our returns.However,we are confident that we own high-quality businesses,which are trading on cheap valuations.Members of the investment team at AVI invest their own money

258、into the funds that AVI manage.As at 30September 2024,AVIs investment team owned 1,962,608 shares in AGT.Introduction to the Strategy Asset Value Investors invests in overlooked and under-researched companies,which own quality assets and trade at discounts to NAV.This philosophy typically leads us t

259、o invest in structures such as family-controlled holdings companies,closed-ended funds and,more recently,Japanese cash-rich operating companies.However,our views on the types of structures through which we invest are entirely agnostic,and portfolio weightings are determined solely by the opportunity

260、 set and our judgement of the risk-reward potential.Our research process involves conducting detailed fundamental research in order to:(a)understand the drivers of NAV growth;and(b)assess the catalysts for a narrowing discount.We often engage actively with management,in order to provide suggestions

261、for improvements that we believe could help narrow the discount or improve operations.Holding Companies When we consider a holding company as an investment,we seek several characteristics.The first is a high-quality portfolio of listed and/or unlisted businesses with the potential for sustained,abov

262、e average,long-term growth.Many of the underlying companies that we have exposure to are world-famous brands,and include:LVMH,Ferrari,Dow Jones,Universal Music,MGM Resorts,Aker BP,Belron and many more.Secondly,we look for the presence of a controlling family or shareholder with a strong track record

263、 of capital allocation and returns in excess of broader equity markets.Long-term shareholders provide strategic vision;many of our holding companies have been family-controlled for generations.This combination of attractive,quality assets managed by long-term capital allocators creates the potential

264、 for superior NAV growth.Finally,we invest at a discount to NAV,preferably with a catalyst in place to narrow the discount.This provides an additional source of returns.We estimate that historically about three-quarters of our returns from holding company investments have come from NAV growth and on

265、e-quarter from discount tightening.Closed-ended Funds Similar to holding companies,we look for certain qualities when we consider a closed-ended fund investment.Most importantly,we look for portfolios of high-quality assets(both listed and unlisted)with good growth potential.Our portfolio of closed-

266、ended funds gives us exposure to many quality companies,such as Starling Bank,Klarna,IU Group,Phenna Group,and many more.We also focus to a great extent on the discount to NAV at which the closed-ended fund trades.In a nuanced distinction from holding companies,we usually insist on a high probabilit

267、y of the discount narrowing or vanishing entirely before we will consider making an investment.In accordance with this,our stakes in closed-ended funds are larger,and we engage with management,boards,and other shareholders to enact policies to help narrow discounts and boost shareholder returns.Hist

268、orically,our portfolio of closed-ended funds has generated half of its returns from discount narrowing.Asset-Backed Special Situations The majority of this portion of the portfolio consists of investments outside of holding companies and closed-ended funds.For several years now,these investments hav

269、e largely been in Japanese cash-rich operating companies.At present,we hold positions in nine Japanese companies which have,on average,39%of their market value in cash and listed securities.Japanese companies have a reputation for overcapitalised balance sheets,but we believe that the winds of chang

270、e are blowing in Japan.The Japanese government has been championing efforts to improve corporate governance and enhance balance-sheet efficiency,and this programme is beginning to have an effect.Major pension funds have signed up to a new Stewardship Code,boards of directors are guided by the princi

271、ples of an updated Corporate Governance Code,and there is an identifiable uptick in the presence of activist investors on Japanese share registers.We can see evidence of this change in increasing payout ratios,buybacks,and more independent directors.We believe that our Japanese holdings stand to ben

272、efit from this powerful trend,and that the market will assign a much higher multiple to these companies if it reassesses the probability of the excess cash and securities being returned to shareholders.We are active in pursuing this outcome and engage continuously with the boards and management of o

273、ur holdings to argue for a satisfactory outcome for all stakeholders.The focus is on quality,cash-generative businesses with low valuations(our current portfolio trades on just 11.4x EV/EBIT).These are the sorts of businesses that one should be happy to own;as such,we can afford to take a long-term

274、view on our holdings as we engage with boards and management to create value for all stakeholders.Summary Our strategy centres upon investing in companies which own diversified portfolios of high-quality assets.In each case,we have sought to invest in companies where the market has misunderstood or

275、overlooked the value on offer,and where our analysis shows that there is a reasonable prospect of this being corrected.The historic returns from this strategy have been strong and came from a combination of discount narrowing and NAV growth.GFSORSIAVI Global Trust plc/Annual Report 202425IRIRSRAVI G

276、lobal Trust plc/Annual Report 202426Investment Review/A Responsible ApproachA responsible approachOUR PURPOSEHelping our clients to make the most of their financial future.The people at Asset Value Investors are committed to leveraging our long heritage,stewardship,and expertise to make investing re

277、sponsible,accessible,and profitable for everyone individuals,families,institutions,private companies,and listed companies.Financial returns matter and we recognise our position of influence in questioning the practices of the companies we invest in for a more sustainable future.OUR PHILOSOPHYWe are

278、fundamentally committed to supporting long-term sustainable businesses that will grow and participate in the prosperity of the economy,with a responsible approach to the environment,society,and governance.We believe that the integration of ESG and sustainability considerations into our investment st

279、rategy is integral to comprehensively understanding each investments ability to create long-term value.OUR PRINCIPLESWe are aligned with the PRIs belief that an economically efficient,sustainable global financial system is a necessity for long-term value creation.Such a system will reward long-term

280、responsible investment and better align investors with the broader objectives of society.AVI became a signatory to the UN-supported Principles for Responsible Investment(PRI)on 9 April 2021.In doing so,we have confirmed our belief in our duty to act in the best long-term interests of our beneficiari

281、es.Research Filtering Portfolio construction Screening of the universe Approach Principles Defi ning E,S&G Stewardship Purpose Philosophy13524It is our view that a responsible approach to the environment,society and governance is key to long-term sustainable businesses.This guiding principle is embe

282、dded not only in our investment philosophy but in how we manage Asset Value Investors as a company.Employees with Equity Ownership in AVI:33.3%AVI was one of the original 200 investment firms to support 10,000 black interns programmeWe maintain a corporate website containing a wide range of informat

283、ion of interest to investors and stakeholders:www.aviglobal.co.ukAVIGlobalTrustAVIGlobalTrustAVI-Global-TrustAVIGlobalTrustDiversity of Workforce:2024 Number2024%Male1562.5Female937.5AVI Global Trust plc/Annual Report 2024GSRFSORSI27*Drawing on the World Economic Forums 21 core metrics,https:/www.we

284、forum.org/stakeholdercapitalism/our-metricsInvestment PeriodESG monitoring system built into our proprietary database to ensure ESG factors are considered alongside financial analysis.Ongoing ESG assessments of portfolio companies performance against defined ESG metrics.A scoring system is used to a

285、ssess trends and highlight potential areas for engagement.Tailored questionnaires sent to all companies based on our assessments to request additional ESG information and promote improved sustainability disclosure.Ongoing controversy monitoring following a clear engagement pathway if companies are f

286、lagged.Constructive engagement with boards and management to help sustainably increase corporate value by building resilience to ESG risks and promoting responsible business practices.Pre-InvestmentExclusionary screening is not our guiding framework,however there are certain exceptions to this.AVI w

287、ill not invest in a company with direct involvement*in:Tobacco Controversial Weapons Pornography Or companies that engage in child labour or human exploitation as defined by the relevant ILO conventions.Prior to investment we:Assess a companys exposure to ESG risks and opportunities,including climat

288、e-related risks and opportunities.Identify whether the company is involved in any actual or potential violations of international norms and standards supported by ISS Norms-based Research.AVI became a signatory to the UN-supported Principles for Responsible Investment(PRI)on 9 April 2021.*Whereby mo

289、re than 5%of that companys NAV is derived from these activities.Institutional Shareholders Services group of companies.$OUR APPROACHAs research-driven value investors,we seek to truly understand each company in our portfolio and the context within which it operates on a case-by-case basis.AVI has bu

290、ilt ESG factors into its proprietary database and implemented a number of processes to support the integration of ESG considerations into each stage of the investment process.DEFINING E,S&GAVI has identified*the factors that we believe are the most material and relevant to our investments and develo

291、ped a bespoke ESG monitoring system to track the performance and progress of our portfolio companies against defined ESG metrics.We define environmental sustainability within the context of:Environmental Impact Tackling Climate Change Sustainable Management Our social focus is divided into:Dignity a

292、nd Equality Wellbeing and Development Community Engagement Our approach to governance includes:Quality of Governing Body Corporate Strategy Ethical Behaviour Our metrics within each of these areas enable us to assess corporate governance practices and evaluate a companys impact and dependencies on t

293、he environment and society,and the extent to which these are being effectively managed.OUR STEWARDSHIPGood stewardship should be viewed as a continuous practice and is essential to preserving and enhancing long-term value.Active engagement is at the core of our investment strategy and our ESG monito

294、ring system plays an important role in helping us to identify potential areas of engagement.As long-term investors,our aim is to build constructive relationships with the boards and management of the companies in which we invest,addressing issues and offering suggestions to sustainably improve corpo

295、rate value in consideration of all stakeholders and in the best long-term interest of our clients.Controversy MonitoringSupported by ISS Norms Based Research,we also closely monitor any controversies and potential violations of international norms and standards associated with our universe.Whilst ou

296、r hope is that controversies do not occur,they can be a marker of how well a companys policies are integrated into business operations and culture,highlighting vulnerabilities or structural problems and indicating where improvements can be made.Through constructive engagement,we encourage and expect

297、 investee companies to take meaningful action in addressing weaknesses in the context of long-term value creation.ACTIVE ENGAGEMENTWe seek to be constructive partners and continue to maintain an active dialogue with the boards and management of our portfolio companies.The majority of our engagements

298、 take place behind closed doors.However,if necessary,we are willing to take our concerns public to raise awareness and compel change.Our approach to engagement is highly bespoke and covers a wide range of topics including ESG themes.We identify ESG engagement topics on a case-by-case basis and avoid

299、 generic guidance,instead carefully analysing the issue within the companys particular context and offering specific suggestions to address weaknesses and sustainably enhance corporate value.IRIRAVI Global Trust plc/Annual Report 202428Investment Review/A Responsible Approach continuedA responsible

300、approach continuedAGT 2024 PROXY VOTING RECORD*Total voted:100%Voted against management:17%Voted with management:83%*6%of these votes were not officially counted for technical reasons.*As at 30/09/2024 100%*17%83%ENGAGEMENT BREAKDOWN*Governance:76%Social:14%Environmental:10%*%breakdown of total ESG

301、engagements(147)during FY24.14%10%76%HIGHLIGHTS FROM 202401.AVI published its first ESG Report,sharing both qualitative and quantitative insights into how we integrate ESG throughout our investment process02.AVI scored comfortably above the PRI median in each module and reported through the PRI for

302、the second time03.AVI welcomed its third summer intern through the 10,000 Black Interns programme04.AVI established a Stewardship and Sustainability Risk Committee,chaired by our Director responsible for ESG Useful resources:https:/www.ccla.co.uk/mental-healthhttps:/ and reports can be found on our

303、website:https:/ ENGAGEMENT We recognise the value of collaborative engagement in addressing collective issues.We continue to participate in CCLAs collaborative initiative which seeks to improve the corporate approach to workplace mental health globally.During 2024,three companies in the portfolio fe

304、ll within scope and joint letters were sent to each.AVI joined the initiative in 2023 and since then LVMH has taken significant steps to demonstrate their commitment to workplace mental health.BESPOKE ENGAGEMENTEvery engagement is different.Not only do our engagements cover a broad range of topics,b

305、ut we employ a wide variety of engagement methods to ensure our views are clearly understood and there is opportunity for constructive dialogue.During 2024,our team visited a number of companies for in-person meetings including trips to our Japanese companies such as Dai Nippon,TSI Holdings and Waco

306、m,meeting with several layers of the companies including chairperson,CXOs and external board members.Whilst the majority of our engagements are long-distance,face-to-face discussions can be invaluable in strengthening collaborative relationships and deepening our engagements.CorporateMental HealthBe

307、nchmarkAGT 2024 ENGAGEMENTSEngagement MethodNumber of EngagementsNumber of Companies EngagedMeeting9231Letter1713Company Visit66Collaborative Engagement33Presentation33Press Release22Shareholder Resolution11AVI Global Trust plc/Annual Report 2024GSRFSORSI29HIPGNOSIS SONGS FUNDWe sold out of our shar

308、es in Hipgnosis Songs Fund(SONG)in May 2024,marking the conclusion of a highly successful engagement campaign and investment for AGT.The trials and tribulations of SONG have been well reported in the media.AVIs long-standing concerns regarding the funds financial controls,transparency and efficacy o

309、f the governing body came to a crescendo with Hipgnosis announcement proposing the sale of a portion of its music portfolio to a related party at a large discount to carrying value.Following extensive private engagement with the Board,AVI published a public letter in October 2023 urging shareholders

310、 to vote against the proposals at SONGs upcoming AGM.Shareholders responded emphatically,voicing an unequivocal demand for change.This ultimately saw the newly reconstituted board oversee a bidding war in which Blackstone ultimately prevailed with a bid of$1.30 per share a premium of+48%to the undis

311、turbed share price.We are delighted by the outcome which demonstrates,once again,not only the importance of strong corporate governance,but the power of shareholder activism to effect change and unlock trapped value.IRIRAVI Global Trust plc/Annual Report 202430Investment Review/Investment Managers R

312、eportPerformance ReviewJOE BAUERNFREUND Chief Executive Officer,Chief Investment OfficerLength of service:22 years(9 years as sole Portfolio Manager)Sole Portfolio Manager of AVI Global Trust since September 2015$“So far,so good”read the introduction to the 2024 annual report by the Bank of Internat

313、ional Settlements,the so-called“central bankers central bank”.And this appears largely true.Inflation has continued to recede such that we are now at the point of monetary policy easing;the US and major Western economies have proved surprisingly resilient;and equity markets have continued to reach n

314、ew highs.That is not to say there is nothing to worry about.There are many good reasons to believe that inflation may well be more volatile and structurally higher than it has been in recent decades,and in-turn this increases the chances of central bank policy mistakes.Economic growth and jobs marke

315、ts might yet deteriorate faster than anticipated and,notwithstanding recent interventions,Chinas economic malaise poses an increased threat to global growth and corporate profits.Meanwhile the increased financialisation of markets and corresponding inherent leverage in the system can lead to bouts o

316、f volatility and instability,as we saw in early August 2024.Within this context AVI Global Trusts NAV increased by+13.7%on a total return basis over the 12 months to 30 September 2024.This compares to a+19.9%return for the MSCI AC World Index,our comparator benchmark.It has been well documented that

317、 index level returns have principally been driven by a narrow band of US technology companies.Even so,it is stark to note that the equal weighted version of the MSCI AC World index returned+10.7%over the period().The Companys performance was driven by stock selection,with outsized contributions from

318、 larger holdings such as KKR,Hipgnosis Songs Fund and Schibsted,as we have continued to shape the portfolio around a concentrated handful of situations where activism and events provide real catalysts to unlock value.Indeed,we believe that activism and the ability to engage with companies is a key t

319、ool in our arsenal,and central to our ability to generate differentiated returns and unlock value for all shareholders.The public example of Hipgnosis Songs Fund which added+245bps1 to returns over the period demonstrates this.With that said,it is our preference and priority that most engagements re

320、main private,where dialogue can be most constructive.In both the London-listed closed-end fund market and amongst Japanese small caps,we find a large number of lowly valued companies where we think we can add value through engagement.AVI Global Trust plc/Annual Report 2024GSRFSORSI31As well as this

321、engagement,a focus on events and catalysts remains an important part of our approach.Schibsted was a prime example of this over the last financial year and we have redeployed capital into new and existing names where we believe the prospects for transformational events are underpriced,such as News C

322、orp(7.5%weight)and Bollore(5.1%).In recent weeks,we have also added significantly to DIeteren,which is now your Companys largest position.DIeteren is due to make an extraordinary return of capital of 74 euros per share a yield of 39%later this year.On a post-distribution basis DIeteren is trading at

323、 an implied-54%discount to NAV which we believe to be a highly attractive valuation.Performance since the interim period has been more challenging as discounts have generally widened and we have witnessed bouts of volatility across markets.A number of companies have endured weaker share price perfor

324、mance,such as Christian Dior and FEMSA,and there has been a lack of commensurately strong performers from the top of the portfolio to offset this.Lulls in performance are not unexpected for a concentrated and catalyst-focused investment strategy,and the underlying asset quality means we can be patie

325、nt whilst we wait for events to occur.Latterly,the portfolio has also suffered from extreme volatility in the Japanese equity market as the Bank of Japan raised interest rates and attempted(!)to pave the way for further hikes to come.A strengthening of the Yen saw shifts in the carry trade,which rev

326、erberated through to global equities,with the TOPIX registering its largest single day decline since 1987.Such moves are devoid of fundamentals and likely fuelled by algorithmic trading.In our view,fundamentally very little has changed,and we believe the thesis of governance reform,corporate activit

327、y and activism remains a highly valid one that is still in a relatively early innings.As such we took advantage of this volatility,adding approximately 300bps1(33m)to several Japanese names at prices few would have thought possible just a matter of days earlier.As we have always said,as uncomfortabl

328、e as it feels at the time,volatility is the friend of the long-term investor.More broadly,both in Japan and other areas of the world,the opportunity set remains rich,and idea generation across all parts of our universe is high.Discounts have generally widened and are wide by historical standards,as

329、indicated by the 35.7%portfolio weighted average discount at the year end.Our focus remains on the bottom-up fundamentals of a relatively small number of mispriced situations where we have an advantage.We continue to believe that stock picking,hard work,activism and a focus on events are key tenets

330、in navigating our way forward.PORTFOLIO WEIGHTED AVERAGE DISCOUNT*-50%-40%-30%-20%-10%Sept 06Sept 12Sept 09Sept 15Sept 18Sept 21Sept 24EQUITY PORTFOLIO VALUE BY MARKET CAPITALISATION2024%2023%1 billion 5 billion 10 billion3327Weighted Average Discount:-35.7%Annualised NAV 10 Year Total Return per Sh

331、are*:+10.2%*For definitions,see Glossary on pages 101 to 105.1.See GlossaryAs ever,we do not pretend to know what is round the corner from a macroeconomic perspective.Rather,our focus remains on the bottom-up fundamentals of a relatively small number of mispriced situations where we have an advantag

332、e.We continue to believe that stock picking,hard work,activism and a focus on events are key tenets in navigating our way forward.Combined with attractive starting valuations,this gives us confidence in generating attractive long-term returns.IRIRAVI Global Trust plc/Annual Report 202432Investment R

333、eview/Investment Managers Report continuedPerformance Review continuedA UNIQUE INVESTMENT PORTFOLIOChrysalis Investments(Chrysalis)is a London-listed closed-ended fund which owns a concentrated portfolio of late-stage,technology-driven private companies.We first invested into Chrysalis in January 2024,with an investment predicated on 1)the abnormally wide-48%discount to a heavily written-down NAV;