AVI Global Trust's (AGT) NAV declined -2.6% in September. In terms of contributors, it was a relatively lean month: Symphony, Wacom and Rohm added +27bps, +26bps and +21bps respectively. On the other hand, we suffered from a number of larger positions enduring weaker performances leading to more sizeable detractions. Most notably, despite reporting what we thought was a good set of results in early September, D'Ieteren was the largest detractor (-63bps) as the shares declined -9% over the course of the month. The company remains one of our largest positions and we see scope for considerable returns as we move toward a likely IPO of Belron (73% of NAV). September marks the end of AGT's financial year – which has been a frustrating one: AGT delivered a GBP NAV total return of +1.7%, which compares unfavourably to the comparator benchmark, the MSCI AC World Index, which returned +18.3% (GBP). Whilst our positions in Japan and Korea delivered strong returns of +17% and +44%, elsewhere returns were generally weaker. Two large holdings in particular – Chrysalis and Vivendi – collectively detracted -781bps from returns. We remain confident in the long-term outlook for both. In the case of Vivendi, the shares now trade at a 53% discount to NAV, with UMG – Vivendi's key underlying holding – having fallen -43% since its IPO, despite the fact adjusted EBITDA will be more than two thirds higher in 2026 compared with at the time of listing. From such doubly discounted levels, we do not believe much has to go right for us to be handsomely rewarded. In the case of Chrysalis, we remain sanguine about what is a multi-year activist campaign in a company where – across AVI funds – we are the largest shareholder. The past year has been disappointing in share price terms, but we have made great strides in helping put the people, structures and incentives in place to unlock value in the coming years. In our view, the current share price is extremely dislocated from fundamentals.
