9th Jul 2025 14:56
(Alliance News) - Migo Opportunities Trust PLC on Wednesday said it is "very optimistic" about the future following a major strategic overhaul that will see the fund adopt a more activist approach and concentrate its portfolio to pursue stronger returns, after reporting a "disappointing" year of share performance.
The London-based investment company with global and Japan-specific portfolios said posted a net asset value total return of minus 5.4% for the year ended April 30, underperforming its benchmark, the sterling overnight index average [SONIA] plus 2%, which rose 7.1%.
NAV per share fell to 342.5 pence from 362.6p a year prior, while net assets dropped 19% to GBP65.9 million. The company also recommended no final dividend for the year, compared to a 0.6p payout the year before.
Despite these results, the trust said the outlook is favourable for shareholders, citing plans to reduce the number of holdings from around 40 to 10 to 15 core positions and take a more hands-on role with investee companies. This is expected to allow portfolio managers greater influence to unlock value, particularly by narrowing discounts to NAV in a sector beset by structural challenges.
The trust's board also approved a new performance-driven fee model and proposed a capital return mechanism to cap NAV at GBP150 million, enhancing shareholder alignment.
Asset Value Investors Ltd, or AVI, the trust's manager, will now reinvest 25% of any performance fees earned into Migo shares, subject to a holding period and ownership cap.
The changes come alongside a handover in management. Long-time manager Nick Greenwood has stepped back after more than 20 years, with Charlotte Cuthbertson and Tom Treanor now co-leading the portfolio.
"The investment universe still offers some incredibly appealing opportunities given the material widening of discounts unrelated to fundamental prospects in many cases," Chair Richard Davidson said.
The trust added that restructuring of the portfolio should be largely complete within a year, market conditions permitting.
Shares in the trust fell 0.9% to 370.30 pence in London on Wednesday afternoon.
By Eva Castanedo, Alliance News reporter
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