abrdn Diversified Income and Growth (ADIG) has announced its annual results for the year to 30 September 2024. The company’s NAV total return was down 2.2%, while shares rose 8.1%. Dividends received by shareholders during the year ended 30 September 2024 amounted to 5.91p per ordinary share, including a special dividend of 1.65p per share. In relation to the financial year ended 30 September 2024, two interim dividends were declared out of net income: 1.42p per share, paid to shareholders on 27 March 2024 and 1.95p per share, paid to shareholders on 24 October 2024.

Following an extensive review of the company’s strategy and discussions with shareholders, a circular was issued by the company in February 2024 setting out the board’s recommendation for a new investment objective and policy as part of proposals for a managed wind-down of the company. The necessary resolutions were approved by shareholders at the general meeting held on 27 February 2024.

The company’s new investment objective is to conduct an orderly realisation of its assets in a manner that seeks to optimise the value of its investments whilst progressively returning cash to shareholders in a timely manner. Following the approval by shareholders, in February 2024, for the company to enter a managed wind-down, the investment manager partially liquidated the portfolio over a three-to-five-month period to allow the board to return approximately £115m at NAV on 10 July 2024.

As the company moves into the next phase of the managed wind-down, the investment manager is taking further steps to realise value for investors over the next three years. The remaining investments are a broad range of alternative and private markets exposures ranging from litigation finance, healthcare royalties, infrastructure, real estate to private equity and private credit. Each investment has a unique set of dynamics that will need to be carefully managed over the wind-down period.

Commenting on the process, the manager noted:

“We anticipate returning capital regularly to shareholders, subject to sufficient liquidity, as investments mature over time and a strategy is put in place for longer dated assets. There is a broad spectrum of asset classes and maturity across the portfolio. The investment team are working on a number of potential liquidity mechanisms and as these options become tangible, we will continue to work with the board as to how best to execute this on behalf of shareholders.”

ADIG : abrdn Diversified Income and Growth makes progress on wind-down