Appointment of new investment manager and AIFM
This Announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
27 July 2023
MIGO Opportunities Trust Plc
(“MIGO” or the "Company")
Appointment of new investment manager and AIFM
- Asset Value Investors appointed as MIGO’s investment manager.
- No change to investment objective and policy or discount management policy.
The Board of MIGO is pleased to announce that it has appointed Asset Value Investors Limited (“AVI”) to become the Company’s AIFM and investment manager to implement MIGO’s existing investment objective and policy. The decision follows detailed shareholder engagement and a rigorous selection process, as part of the Board’s manager review announced in March.
AVI is an experienced manager of investment trusts, having run the £1.1bn AVI Global Trust since AVI was set up in 1985, and £186m AVI Japan Opportunity Trust since its launch in October 2018. The Board expects MIGO to benefit from AVI’s deep sector expertise and supportive analyst resource as well as its distribution and marketing channels. Over the past five years, AVI has added significant resource to its investment research team; this depth of knowledge will be available to support MIGO’s portfolio managers.
AVI’s appointment remains subject to regulatory approval and is expected to commence in Q4 2023. The term of the investment management agreement with Premier Miton Investors (“PMI”) has been extended to accommodate this transition date. The Board would like to thank PMI for its cooperation in this transition.
The Board is particularly pleased that, alongside MIGO’s appointment of AVI, AVI has committed to hiring additional, specialist investment management resource with experience of managing a portfolio such as MIGO’s. This recruitment has started with Charlotte Cuthbertson, a former co-portfolio manager of MIGO, who joined AVI earlier in July. AVI has also informed the board that it expects to be able to announce a further senior level appointment with relevant experience, to work alongside Charlotte, in the coming months.
The Board has been mindful of shareholders’ views expressed during the consultation exercise and looks forward to sharing full details of the AVI appointment once regulatory approvals have been received. As previously announced, PMI will continue to manage the MIGO portfolio, until MIGO transitions to AVI.
There will be no change to MIGO’s robust discount management policy or fee structure. The Company will continue to retain Frostrow Capital as Company Secretary and Administrator and Frostrow will also continue to provide investor relations and marketing services.
Richard Davidson, Chairman of MIGO Opportunities Trust plc, commented:
“AVI has developed strong credibility and deep resources as an investment trust manager, as well as substantial experience investing in investment companies. As such, following a number of expressions of interest and our detailed review, it was clear to the Board that AVI is the right choice for managing MIGO.
“Given AVI’s strong focus on exploiting mispricing and catalysts for value, and their commitment to hiring specialist resource focusing on investment companies, the Board is convinced MIGO will further benefit from AVI’s credibility, scale and understanding of the sector.
“At a time when investment company discounts are wider than they have been for a generation, the opportunities for MIGO are particularly exciting and we look forward to seeing MIGO going from strength to strength at its new home.”
Joe Bauernfreund, Chief Executive Officer and Chief Investment Officer of Asset Value Investors, commented:
“AVI is delighted to have been appointed investment manager of MIGO. MIGO is an excellent complement to our existing range of investment trusts. We share a common philosophy and investment style which focuses on seeking out good quality securities trading at a discount to their net asset value. Following the recent market volatility, the opportunities in investment companies are even more attractive and MIGO is well placed to take advantage of these.”
“We are also pleased that Charlotte Cuthbertson has joined our investment team. Charlotte has a wealth of experience investing in investment trusts and we look forward to working with her.”
Charlotte Cuthbertson, Portfolio Manager at AVI, commented:
“I am very much looking forward to be back managing MIGO, doing a job I love, as part of a specialist platform with a very similar approach to MIGO. The portfolio is in great shape and this is an exciting time for the strategy.
“With over 350 investment trusts trading at a discount to their net asset value, there are huge opportunities for value. But discounts don’t tell the whole story. With MIGO, the team and I will continue focusing on those trusts which trade at a discount, where the wider sector sentiment is improving, and there are clear catalysts to deliver value.
“In AVI, Joe and the team have built a well-respected business, and I’d like to thank them all for their warm welcome. I’ve been getting up to speed with the portfolio since I joined and I can’t wait to get properly started when MIGO moves over to AVI in Q4.”
For further information, please contact:
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MIGO Opportunities Trust plc |
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Richard Davidson, Chairman |
Via KL Communications or Numis |
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Numis - Corporate Broker |
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Nathan Brown |
+44 (0)20 7260 1426 / +44 (0)7795 964 870 |
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Matt Goss |
+44 (0)20 7260 1643 / +44 (0)7801 544 557 |
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KL Communications - Financial PR |
MIGO@kl-communications.com |
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Charles Gorman Adam Westall Amy Levingston-Smith |
+44 (0)20 3995 6673 / +44 (0) 7795 977 967 |
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Frostrow Capital – Company Secretary |
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Richard Plaskett Kerstin Rucht |
+44 (0)20 3709 2407 +44 (0)20 3709 8732 |
Background
On 7 March 2023, MIGO announced that it had served six months’ protective notice to PMI on its investment management agreement with the Company after being informed that Nick Greenwood, the Company’s lead portfolio manager, had resigned from PMI.
Consequently, the Board decided to review options for the future management of MIGO. The Board conducted a thorough process, including a major shareholder consultation exercise, and proposals from over a dozen investment management firms.
About MIGO
The objective of MIGO Opportunities Trust plc is to outperform SONIA1 plus 2% (the “Benchmark”) over the longer term, principally through exploiting inefficiencies in the pricing of closed-end funds.
This objective is intended to reflect the Company’s aim of providing a better return to shareholders over the longer term than they would get by placing money on deposit. The Benchmark is a target only and should not be treated as a guarantee of the performance of the Company or its Portfolio.
MIGO was launched on 6 April 2004, with Nick Greenwood as its lead investment manager. MIGO’s net asset value is currently £80m.
Further information on MIGO can be found at: https://www.migoplc.co.uk/
About AVI
AVI is an investment management company established in London, United Kingdom, in 1985. AVI manages AVI Global Trust (£1.2bn), one of the oldest listed invested companies in London and AVI Japan Opportunities Trust (£168m), both public companies whose shares are listed and traded on the main market of the London Stock Exchange.
Notes:
(1) SONIA is the Sterling Overnight Index Average, the Sterling Risk-Free Reference Rate preferred by the Bank of England for use in Sterling derivatives and relevant financial contracts.
LEI: 21380075RRMI7D4NQS20
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