Offering a unique

perspective

Annual Report 2023

AVI Global Trust plc Annual Report 2023

AVI Global Trust plc / Annual Report 2023

AVI Global Trust plc (AGT

or the Company) was

established in 1889. The

Company’s investment

objective is to achieve capital

growth through a focused

portfolio of investments,

particularly in companies

whose shares stand at

a discount to estimated

underlying net asset value.

Welcome to our 2023 Annual Report

NET ASSETS

†

£1.0 billion*

LAUNCH DATE

1 July 1889

ANNUALISED NAV TOTAL

RETURN SINCE 1985

†

11.5%**

EXPENSE RATIO

†#

0.86%***

AVI Global Trust plc (AGT

or the Company) was

established in 1889. The

Company’s investment

objective is to achieve capital

growth through a focused

portfolio of investments,

particularly in companies

whose shares stand at

a discount to estimated

underlying net asset value.

AVI Global Trust plc / Annual Report 2023

* As at 30 September 2023.

** Source: Morningstar, performance period 30 June 1985 to 30 September 2023,

total return net of fees, GBP. The current approach to investment was

adopted in 1985.

*** As at 30 September 2023, includes: management fee, marketing and

administration costs.

† For all Alternative Performance Measures included in this Strategic Report, please

see deﬁnitions in the Glossary on pages 103 to 106.

# For a detailed discussion of the Expense Ratio, please see Key Performance

Indicators on page 12.

ISA Status

The Company’s shares are eligible for Stocks & Shares ISAs.

Retail Investors Advised by IFAs

The Company currently conducts its affairs so that its shares can be recommended

by 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 Authority’s restrictions which apply 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 Union’s

Alternative Investment Fund Managers’ Directive (AIFMD). Its Alternative Investment

Fund Manager (AIFM) is Asset Value Investors Limited. Further disclosures required

under the AIFMD can be found on the Company’s website: www.aviglobal.co.uk.

Awards

Shareholder

Communication

Awards 2023

Winner

Best Report and Accounts

(Generalist)

Investment Trust

Awards 2023

Winner

Global Equities

Investment Company

of the Year

Awards 2023

Winner

Global

AVI Global Trust plc / Annual Report 2023

GIR

Strategic Report

2 Company Overview

4 Company Performance

6 The Investment Manager at a Glance

8 Chairman’s Statement

12 KPIs and Principal Risks

16 Section 172 Statement

17 Stakeholders

19 Responsible Business

20 Ten Largest Equity Investments

22 Investment Portfolio

Investment Review

24 About Asset Value Investors

25 Overview of AVI’s Investment

Philosophy

26 Promoting Sustainable Attitudes

30 Investment Manager’s Report

34 Head of Research Q&A

36 Portfolio Review

51 Outlook

Governance

52 Your Board

54 Report of the Directors

Financial Statements

65 Statement of Comprehensive Income

66 Statement of Changes in Equity

67 Balance Sheet

68 Statement of Cash Flows

69 Notes to the Financial Statements

Other Reports

86 AIFMD Disclosures (Unaudited)

87 Report of the Audit Committee

90 Directors’ Remuneration Policy

92 Report on Remuneration

Implementation

94 Independent Auditor’s Report

Shareholder Information

98 Notice of Annual General Meeting

102 Shareholder Information

103 Glossary

107 Company Information

CONTENTS

SEEKING OPPORTUNITIES GLOBALLY

08.

Overview of the year

33.

Finding undiscovered value

among high-quality assets

37.

Generating signiﬁ cant value

Portfolio companies such as Apollo Global

generated signiﬁ cant value in FY23.

Read more about our history on our

website: www.assetvalueinvestors.com/

agt/about-the-trust/history/

AVIGlobalTrust

AVIGlobalTrust AVI-Global-Trust

@AVIGlobalTrust

AVI Global Trust plc / Annual Report 2023

Annual General Meeting

I am pleased to be able to invite all shareholders

to attend our AGM at 11 Cavendish Square

on Wednesday 20 December 2023. We do

recognise that some shareholders 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 agm@aviglobal.co.uk or by post to

The Company Secretary, AVI Global Trust PLC,

6th Floor, 65 Gresham Street, London,

EC2V 7NQ.

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 objections.

Outlook

The geopolitical and economic environment are

undoubtedly challenging and the world is likely

to be unstable for some time. This provides

excellent investment opportunities and in their

report AVI speak of valuations last seen at the

time of the global ﬁnancial crisis. While progress

is unlikely to be straightforward, given the

resources at our Investment Manager’s disposal

and the opportunities that they perceive, we look

forward to the future with optimism and continue

to believe that, over the long term, AVI will deliver

attractive returns to AGT’s shareholders.

Graham Kitchen

Chairman

9 November 2023

AVI Global Trust plc / Annual Report 2023

GIR

PRINCIPAL AND EMERGING RISKS

When 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 of 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 understand 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 investments 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 out 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 during 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.

* For definitions, see Glossary on pages 103 to 106.

KEY PERFORMANCE INDICATORS

The Company’s Board of Directors meets regularly and at each meeting

reviews performance 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 Company’s NAV total return as being the overall

measure of value delivered 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 Manager’s investment style

is such that performance may deviate materially from that of any broadly-

based equity index. The Board considers the most useful comparator

to be the MSCI All Country World Index. Over the year under review, the

benchmark increased by +10.5% on a total return basis and over ten years

it has increased by +10.6% on an annualised total return basis.

A full description of performance and the investment portfolio is contained

in the Investment Review, commencing on page 24.

Discount*

The Board believes that an important driver of an investment trust’s

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 each 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 29.3m shares

were bought back, adding an estimated 0.6% to net asset value per share

to the beneﬁt of continuing shareholders. The shares were bought back at

a weightedaverage discount of 10.3%.

Expense ratio*

The Board continues to be conscious of expenses and aims tomaintain a

sensible balance between good service and costs.

In reviewing charges, the Board’s Management Engagement Committee

reviews in detail each year the costs incurred and ongoing commercial

arrangements with each of the Company’s key suppliers. The majority of

the expense ratio is the cost of the fees paid to the Investment Manager.

This fee is reviewed annually.

For the year ended 30 September 2023, the expense ratio was 0.86%,

down slightly from the previous year. These running costs in monetary

terms amounted to £8.7m in 2023 (£9.6m 2022).

The Board notes that the UK investment management industry uses

various metrics to analyse the ratios of expenses to assets. In analysing

the Company’s performance, the Board considers an Expense Ratio

which compares the Company’s 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 not 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 companies which do not have explicit management fees.

The Board has therefore chosen not to quote an Ongoing Charges Ratio

per the AIC’s guidance as part of its KPIs but has disclosed an Ongoing

Charges Ratio – Glossary on pages 103 to 106.

Strategic Report / KPIs and Principal Risks

NAV TOTAL RETURN*

+15.3%

10 Years (Annualised) +9.6%

1 year +15.3%

DISCOUNT, YEAR-END*

10.9%

2022 10.4%

2023 10.9%

EXPENSE RATIO* (YEAR ENDED 30 SEPTEMBER)

0.86%

2022 0.88%

2023 0.86%

Key Performance Indicators

AVI Global Trust plc / Annual Report 2023

The Board believes that managing risk is the task of everyone involved

in the management 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 they have changed over time. The purpose of this

focus is to ensure that the returns earned are commensurate with the risks

assumed.

The Board has assessed the risks which the Company faces under a

number of headings. Pressure on the discount, a previously identiﬁed

principal risk, increased during the year. This was partly due to heightened

geopolitical and macroeconomic risk. In addition, the effects of

interpretations of the new UK Consumer Duty regulations, as discussed in

the Chairman’s Statement, emerged as a further source of pressure on the

discount. Shortly after the ﬁnancial year-end, the attack by Hamas on Israel

presented a further source of geopolitical risk, increasing our assessed level

of risk under this heading. A summary of the 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

Risks Risk Tolerance and Mitigating Actions Movement

Loss of value – portfolio

performance

The market or the Company’s

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 results 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 investment 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

Company’s holdings 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 element of the Investment

Manager’s 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 Manager’s compliance function and the

Administrator’s independent checks, has a robust system for ensuring compliance

with the investment mandate.

Geopolitical and macroeconomic

The 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, macroeconomic uncertainty,

US-China trade disputes, and the

continued impact of Brexit. In particular,

the Russian invasion of Ukraine has

heightened the previously identiﬁed risk

of higher levels of inﬂation and interest

rate hikes, with its impact particularly felt

across Western Europe and the US.

Shortly after the ﬁnancial year-end

the attack by Hamas on Israel further

heightened the level of geopolitical risk,

which could in turn affect inﬂation and

global trade.

The Directors’ assessment under this

heading was already classiﬁed as

high following the Russian invasion of

Ukraine but the level of risk has further

increased.

The Russian invasion of Ukraine has had a global impact, catalysing both increased

levels of inﬂation and heightened turbulence in asset values. The conﬂict between

Israel and Hamas along with increased tension between nations in various places has

made the world a more unsettled place. Developed economies now face the risk of

entrenched inﬂation, or a potential recession due to high interest rates intended to

combat it. Further geopolitical tension is likely to affect global trade. The knock-on

impact of all of these factors is likely to create environments which have not been

experienced in developed economies for many years. Given that markets do not

operate in a vacuum, this would 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 macroeconomic

environment and the ongoing conﬂict in Ukraine 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 affected

by general market movements, the underlying assets are well diversiﬁed by geography

and type of company.





AVI Global Trust plc / Annual Report 2023

GIR

Strategic Report / KPIs and Principal Risks continued

Principal and Emerging

Risks Risk Tolerance and Mitigating Actions Movement

Gearing

While 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 covenants attached to

the Loan Notes and bank debt; 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 over

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 term. 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 Company’s gearing at a prudent level, and the

covenants are set at levels 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 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 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 increase in value in Sterling terms if the exchange

rates increase, enabling us to offset the debt position by creating a natural hedge.

Foreign exchange

The 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 Sterling.

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 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 2023, the Company had €50m (£43m) of borrowing and investments

denominated in Euros whose value exceeded that of this borrowing. Furthermore,

the Company had JPY12.5bn (£68m) of borrowing and investments denominated in

Japanese Yen whose value exceeded that of this borrowing. In addition the Company

had a loan of £30m, the primary currency of the Company, and holds investments

denominated in GBP of a greater value.

Liquidity of investments

While the investment portfolio is made

up predominantly of liquid investments,

there is a possibility 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 AVI’s holdings across 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 Manager’s strategy, and so trading on a stock

exchange is not the only source of liquidity in the portfolio.

Key staff

Management of the Company’s

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

contingency plans. The Board’s Management Engagement Committee reviews all

of its key suppliers at least once per year.

* 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 at amortised cost.



AVI Global Trust plc / Annual Report 2023

Principal and Emerging

Risks Risk Tolerance and Mitigating Actions Movement

Discount rating

The shares of investment trusts

frequently trade at a discount to their

published net asset value. The value of

the Company’s shares will be subject to

the interaction of supply 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 pressure on

the share price and discount. This may

be due to any of a variety of factors,

including investment performance or

regulatory change.

Any company’s 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 to

mitigate the discount, the Board looks at both supply and demand for the Company’s

shares.

The Board seeks to manage the risk of any widening of the discount by regularly

reviewing the level of discount at which the Company’s shares trade. If necessary

and appropriate, the Board may seek to limit any signiﬁcant widening through

measured buybacks of shares. During the year under review, in common with most

of the investment trust sector, the Company’s shares traded at a persistent discount

and the frequency of share buybacks and the total number of shares bought was

increased to mitigate the pressure on the share price rating.

The Investment Manager has a 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.



Outsourcing

The Company outsources 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 Investment 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.

ESG

There 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

portfolio 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 company approaches

stewardship of the environment, as well as seeking to identify any unacceptable

practices that are detrimental to the environment or climate.

The principal ﬁnancial risks are examined in more detail in note 15 to the ﬁnancial statements on pages 79 to 84.



AVI Global Trust plc / Annual Report 2023

GIR

Section 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 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 Board’s approach is described under

“Stakeholders” on the next page.

Culture and Values

The Directors’ overarching duty is to promote

the success of the Company for the beneﬁt

of investors, with due consideration of other

stakeholders’ interests. The Company’s

approach to investment is explained in the

Investment Manager’s Review. The Directors

aim to achieve a supportive business culture

combined 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 of gifts and hospitality), tax

evasion, conﬂicts of interest, and dealings in

the Company’s 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

Company’s 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 Company’s

costs, thereby enhancing performance and

returns for the Company’s shareholders. The

Directors consider the impact on the community

and environment. The Board and Investment

Manager work closely together in developing

and monitoring the Company’s approach to

environmental, social and governance matters.

Strategic Report / Section 172 Statement

Section 172

(a) the likely consequences of

any decision in the long term

(b) the interests of the

company’s employees

business relationships with

suppliers, customers and others

(d) the impact of the company’s

operations on the community

and the environment

(e) the desirability of the company

maintaining a reputation for high

standards of business conduct

(f) the need to act fairly as between

members of the company

In managing the Company, the aim of the Board and of the Investment Manager is always to

ensure the long-term sustainable 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 Company’s long-term sustainable success 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.

The Company does not have any employees.

The Board’s approach is described under “Stakeholders” on the next page.

The Board takes a close interest in ESG issues and sets the overall strategy. As management of the

portfolio is delegated to the Investment Manager, the practical implementation of policy rests with

AVI. A description of AVI’s ESG policy is set out on pages 26 to 29.

The Board’s approach is described under “Culture and Values” below.

The Board’s approach is described under “Stakeholders” on the next page.

AVI Global Trust plc / Annual Report 2023

The Company has a large number of shareholders, including

professional and private investors. Over the years, the Company has

developed 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

opportunity 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 Company’s website. Their availability is announced via the

stock exchange;

Investor 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 Broker and also engages some

external providers, such as communications advisers, to obtain

a detailed view on specific aspects of shareholder communications;

Feedback from shareholders – The Board values the feedback

and questions that it receives from shareholders and takes note

of individual shareholders’ 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

chair@aviglobal.co.uk or by letter to the Company’s 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 feedback from

shareholders were:

• the change of the Company’s 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;

• cancellation of some of the shares held in treasury in

February 2022; and

• the change of comparator benchmark described in this

Annual Report.

Shareholders

Stakeholders Why they are important Board Engagement

As the Company is an investment

trust, its shareholders 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.

In line with the Companies (Miscellaneous

Reporting) 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:

Strategic Report / Stakeholders

Stakeholders

AVI Global Trust plc / Annual Report 2023

GIR

The Investment Manager’s performance

is critical for the Company to deliver its

investment strategy and meet its objective.

The Administrator and Company Secretary

are key to the effective running of the

Company.

Lenders

The Investment

Manager

The Administrator

and Company

Secretary

Stakeholders

The Company has raised capital in the

form of both short-term and long-term

debt from a small group of lenders.

Although the Company 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.

Why they are important Board Engagement

All of the Company’s debt is subject to contractual terms and

restrictions. We have an established 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 take out JPY4.5bn ﬁxed

rate unsecured debt (as discussed on page 10) during the year.

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

Company’s investment objective. The Board seeks to:

Encourage 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 strategy and, where relevant, the Investment Manager’s

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 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 standards 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.

A recent example of taking the interests of key service providers in

account was the decision to directly contract the previously sub-

contracted services of the Administrator as discussed on page 58.

The 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 Company, in this context

the other key service providers are the

Custodian, Depositary and Registrar.

Other key service

providers

Service Providers

Strategic Report / Stakeholders continued

AVI Global Trust plc / Annual Report 2023

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE (ESG) ISSUES

Both 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 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 equity securities in line with

its investment strategy. A key component of AVI’s investment strategy is

to understand and engage with the management of public companies.

AVI’s Environmental, Social and Governance Policy, which is summarised

on pages 26 to 29, recognises that shareholder value can be enhanced

and 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 environmental

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

62, as an investment trust without employees, the Company is not required

to report against the TCFD framework.

The Company has no employees. The Company’s principal suppliers,

which are listed on the inside back cover of this report, have conﬁrmed

that they comply with the provisions of the UK Modern Slavery Act 2015.

The Directors do not have service contracts. There are ﬁve Directors, three

male and two female. Further information on the Board’s Diversity policy

and the policy on recruitment of new Directors is contained on pages 57

to 58.

FUTURE STRATEGY

The Board and the Investment Manager have long believed in their focus

on investment in high-quality undervalued assets and that, over time, this

style of investment has been well rewarded.

The Company’s overall future performance will, inter alia, be affected by: the

Investment Manager’s decisions; investee companies’ earnings, corporate

activity, dividends and asset values; 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 Company’s performance relative to its peer group and benchmark will

depend on the Investment Manager’s ability to allocate the Company’s assets

effectively, and manage its liquidity or gearing appropriately. More speciﬁcally,

the Company’s performance will be affected by the movements in the share

prices of its investee companies in comparison to their own net asset values.

The overall strategy remains unchanged.

Approval of Strategic Report

The Strategic Report has been approved by the Board and is signed on its

behalf by:

Graham Kitchen

Chairman

9 November 2023

Strategic Report / Responsible Business

AVI Global Trust plc / Annual Report 2023

GIR

Classiﬁcation

Closed-ended Fund

% of net assets

7.6%

Classiﬁcation

Holding Company

% of net assets

8.6%

1 2 3 4 5 6

INVESTOR AB ‘B’INVESTOR AB ‘B’

2. OAKLEY CAPITAL INVESTMENTS

The top ten equity investments

make up 60.7% of the net assets*,

with underlying businesses spread

across a diverse range of sectors

and regions.

All discounts are estimated by AVI

as at 30 September 2023, based on AVI’s

estimate of each company’s net asset value.

* For deﬁnitions, see Glossary on pages 103 to 106.

** % of net assets.

A Norwegian-listed holding company offering

exposure to high-quality online classiﬁed

businesses. This is split between unlisted

Nordic assets and a listed stake in Adevinta, a

company that was spun-out from Schibsted to

pursue international growth and consolidation.

The market applies an inordinately low implied

valuation on the unlisted assets due to the

structure. With potential for an upcoming

corporate event, combined with prospects for

signiﬁcant improvements in monetisation and

margins, we see considerable upside.

Source / Adevinta

Oakley Capital Investments (OCI), is a London-

listed closed-ended fund which invests in 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. Its process

focuses on less intermediated markets and

complex deals (e.g. carve-outs), which avoids

the auction process, sourced by a network

of entrepreneurs who believe in the Oakley

philosophy. We believe that OCI’s signiﬁcant

discount will narrow from continued NAV

outperformance arising from realised exits, and

the continued earnings growth of its portfolio.

Source / Cegid

London-listed closed-end fund managed by

Swiss private equity manager Partners Group.

Princess 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 board on multiple matters.

Source / Partners Group AG

A value-orientated US-listed alternative asset

manager with c. USD617bn of assets under

management. Following its merger with Athene

Insurance, Apollo has ambitious plans to grow

its “Fixed Income Replacement Opportunity”

offering within a USD40 trillion market.

Source / Apollo

Classiﬁcation

Holding Company

% of net assets

5.8%

Classiﬁcation

Closed-ended Fund

% of net assets

6.2%

60.7%**

1. SCHIBSTED B

6. PRINCESS PRIVATE EQUITY

7. APOLLO GLOBAL MANAGEMENT

Look-through Sector breakdown

Communication

Services: 28%

Consumer

Discretionary: 21%

IT: 11%

Financials: 10%

Consumer

Staples: 6%

Energy: 6%

Healthcare: 5%

Industrials: 5%

Materials: 4%

Real Estate: 3%

Utilities: 1%

DIVERSIFIED

Our portfolio contains broad

diversiﬁcation to sectors

and companies.

Strategic Report / Ten Largest Equity Investments

View our investment platforms at:

www.aviglobal.co.uk

Valuation

£78.7m

Discount

-32%

Valuation

£88.6m

Discount

-34%

Valuation

£59.7m

Discount

-30%

Valuation

£64.2m

Discount

-29%

AVI Global Trust plc / Annual Report 2023

Classiﬁ cation

Holding Company

% of net assets

6.3%

Classiﬁ cation

Holding Company

% of net assets

6.3%

Valuation

£65.0m

Discount

-24%

Valuation

£64.5m

Discount

-28%

Classiﬁ cation

Holding Company

% of net assets

6.8%

7 8 9 10

INVESTOR AB ‘B’INVESTOR AB ‘B’

A US-listed alternative asset manager with c.

USD519bn of assets under management. KKR

is one of the largest companies in an industry

with appealing structural characteristics,

underpinned by valuable fee-related earnings.

Source / Kohlberg Kravis Roberts & Co. L.P.

Aker is a Norwegian holding company with

investments principally in oil & gas, renewables

& green tech, marine-related activities and

industrial software. Its largest asset is Aker BP,

a Norwegian oil company. Aker has a history

of active portfolio management, dealmaking

and value creation, with a track record of strong

shareholder returns since Initial Public Offering

(IPO) in 2004.

Source / Aker Solutions

FEMSA is a Mexican family-controlled holding

company with roots dating back to the

establishment of Mexico’s ﬁ rst brewery in 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. We believe this will lead to a re-rating

of the shares.

Source / Comunicación Corporativa FEMSA

Pantheon International is one of the oldest

listed private equity vehicles and has built

up a strong NAV performance track-record

over several decades, thanks to its diversiﬁ ed

portfolio of private equity funds owning high-

quality companies with robust earnings growth.

In August, the company announced a revised

capital allocation policy, equating to 15% of

shares outstanding, baking a substantial degree

of NAV accretion into future returns.

Source / Pantheon International Plc.

A seventh-generation Belgian family-controlled

holding company whose crown jewel asset is a

50% stake in Belron, the global no.1 operator

in the Vehicle Glass Repair, Replacement and

Recalibration industry. Belron boasts numerous

scale advantages and beneﬁ ts from tailwinds.

Combined with the durable growth prospects

for D’Ieteren’s other assets, and the wide discount

at which the company trades, we are excited

about prospective returns.

Source / Belron

Christian Dior’s sole asset is a 41% stake in LVMH,

the luxury goods conglomerate. We view LVMH

as a highly attractive asset, with diverse exposure

across Fashion & Leather, Wine & Spirits, Perfume

& Cosmetics, Watches & Jewellery and Selective

Retail. LVMH’s collection of brands is unique

and the rich cultural heritage underlying them is

impossible to replicate. These factors drive strong

demand, high pricing power and attractive margins.

We see strong earnings upside from LVMH, as well

as potential returns from the collapse of the holding

structure.

Source / Getty images

Classiﬁ cation

Holding Company

% of net assets

3.9%

Classiﬁ cation

Holding Company

% of net assets

4.0%

Classiﬁ cation

Closed-ended Fund

% of net assets

5.2%

50.3%**

5. FEMSA4. AKER ASA3. KKR & CO

10. CHRISTIAN DIOR9. D'IETEREN GROUP8. PANTHEON INTERNATIONAL

Valuation

£69.7m

Discount

-27%

Valuation

£40.3m

Discount

-15%

Valuation

£41.5m

Discount

-41%

Valuation

£53.7m

Discount

-38%

AVI Global Trust plc / Annual Report 2023

GIR

% of

investee IRR ROI Cost Fair value % of

Company Portfolio classification company (%, £)

(%, £)

£’000

£’000 net assets

Schibsted ‘B’ Holding Company 2.2% 25.6% 24.8% 71,238 88,593 8.6%

Oakley Capital Investments Closed-ended Fund 10.0% 23.1% 111.5% 36,560 78,677 7.6%

KKR & Co Holding Company 0.2% 32.3% 135.1% 30,305 69,725 6.8%

Aker ASA Holding Company 1.7% 16.5% 75.4% 59,967 64,952 6.3%

FEMSA Holding Company 0.3% 26.9% 68.8% 39,314 64,510 6.3%

Princess Private Equity Closed-ended Fund 10.0% 29.1% 12.0% 58,183 64,160 6.2%

Apollo Global Management ‘A’ Holding Company 0.1% 32.3% 84.2% 33,528 59,712 5.8%

Pantheon International Closed-ended Fund 3.5% 22.7% 14.0% 47,042 53,743 5.2%

D’Ieteren Group Holding Company 0.6% 14.7% 12.0% 37,699 41,458 4.0%

Christian Dior Holding Company 0.0% 26.3% 97.1% 22,498 40,272 3.9%

Top ten investments

436,334 625,802 60.7%

Pershing Square Holdings Closed-ended Fund 0.4% 18.6% 46.6% 25,972 39,968 3.9%

Nihon Kohden Asset-backed Special Situation 2.1% 3.4% 2.9% 36,247 36,807 3.7%

News Corp Holding Company 0.6% 2.8% 1.7% 35,674 36,095 3.5%

IAC Holding Company 1.0% -31.1% -41.9% 64,482 34,150 3.3%

Godrej Industries Holding Company 1.8% 2.3% 9.0% 30,288 34,097 3.2%

Hipgnosis Songs Fund Closed-ended Fund 3.4% -3.3% -2.5% 38,607 33,142 3.2%

Symphony International Holdings Closed-ended Fund 15.7% 7.9% 52.0% 26,636 31,807 3.1%

Third Point Investors Closed-ended Fund 4.1% 6.5% 33.2% 23,728 26,961 2.6%

Wacom Asset-backed Special Situation 4.7% -17.6% -30.5% 37,086 24,215 2.3%

EXOR Holding Company 0.1% 11.0% 42.5% 13,574 20,506 2.0%

Top twenty investments 768,628 943,550 91.5%

Bollore Holding Company 0.1% nm -11.0% 20,087 17,799 1.7%

Molten Ventures Closed-ended Fund 5.0% -39.9% -31.4% 25,430 17,452 1.7%

DTS Asset-backed Special Situation 2.0% 8.3% 21.6% 15,795 16,628 1.6%

Digital Garage Asset-backed Special Situation 1.8% -10.7% -15.2% 21,871 16,115 1.6%

Hachijuni Bank Asset-backed Special Situation 0.5% nm 25.2% 10,114 12,508 1.2%

Kyoto Financial Group Asset-backed Special Situation 0.3% nm 17.4% 10,315 11,937 1.2%

Dai Nippon Printing Asset-backed Special Situation 0.2% nm 7.9% 10,840 11,646 1.1%

Konishi Asset-backed Special Situation 2.3% 4.8% 19.8% 10,522 11,630 1.1%

Shiga Bank Asset-backed Special Situation 1.1% nm 8.4% 10,577 11,334 1.1%

Haw Par Corporation Holding Company 0.8% nm -0.1% 11,360 10,957 1.1%

Top thirty investments 915,539 1,081,556 104.9%

Strategic Report / Investment Portfolio

As at 30 September 2023

AVI Global Trust plc / Annual Report 2023

% of

investee IRR ROI Cost Fair value % of

Company Portfolio classification company (%, £)

(%, £)

£’000

£’000 net assets

SK Kaken Asset-backed Special Situation 1.8% -11.6% -42.8% 19,056 10,303 1.0%

TSI Holdings Asset-backed Special Situation 2.5% nm 22.2% 8,182 9,954 1.0%

Fuji Soft Asset-backed Special Situation 0.5% nm 4.7% 9,047 9,431 0.9%

Iyogin Holdings Asset-backed Special Situation 0.4% nm 28.4% 6,496 8,276 0.8%

Pasona Group Asset-backed Special Situation 2.0% 6.9% 21.2% 8,551 7,497 0.7%

Shin Etsu Polymer Asset-backed Special Situation 0.8% 1.2% 1.2% 5,111 5,021 0.5%

VEF Holding Company 2.3% -5.8% -5.2% 4,525 3,989 0.4%

JPEL Private Equity Closed-ended Fund 18.4% 19.9% 100.1% 1,554 3,954 0.4%

Seraphim Space Investment Closed-ended Fund 2.9% -10.0% -8.0% 3,213 2,955 0.3%

Better Capital (2009)

†

Closed-ended Fund 17.4% 22.1% 41.1% 1,962 903 0.0%

Top forty investments 983,236 1,143,839 110.9%

Third Point Investors

Private Investments

†

Closed-ended Fund 0.0% nm nm 582 602 0.1%

Ashmore Global Opportunities – GBP* Closed-ended Fund 0.0% 4.2% 7.8% 31 318 0.0%

Equity investments at fair value 983,849 1,144,759 111.0%

Equity

exposure Fair value % of

Fair value and gross market exposure of investments

£’000 £’000 net assets

Equity investments 1,144,759 1,144,759 111.0%

Total return swap long positions

Brookfield Class A 52,097 (16,067)** -1.6%

SK Square 18,837 (1,437)** -0.1%

70,934 (17,504) -1.7%

Total return swap short positions

Brookfield Infrastructure Partners Units (3,744) 714* 0.1%

Brookfield Asset Management Class A (24,501) 168* 0.0%

Brookfield Renewable Partners Units (4,077) 1,292* 0.1%

SK Hynix Inc (14,664) (3,369)** -0.3%

(46,986) (1,195) -0.1%

23,948 (18,699) -1.8%

Investments and total return swaps 1,168,707 1,126,060 109.2%

Other net current assets less current liabilities 46,507 4.5%

Non-current liabilities (141,549) -13.7%

Net assets 1,031,018 100.0%

Internal Rate of Return. Calculated from inception of AGT’s investment. Refer to Glossary on pages 103 to 106. Where it is not possible to report a meaningful figure for

the IRR, due to the investment having been held less than 12 months, this is indicated as “nm”.

Return on investment. Calculated from inception of AGT’s investment. Refer to Glossary on pages103 to 106.

Cost. Refer to Glossary on pages 103 to 106

The fair value column of the total return swaps is determined based on the 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 return swap positions directly in the market and at the Balance Sheet date would be a cost of £70,934,000. If the long positions were

closed at 30 September 2023, this would result in a loss of £17,504,000. The notional price of selling the securities to which exposure was gained through the short

total return swaps at the Balance Sheet date would be £46,986,000. If the short positions were closed on 30 September 2023, this would result in a loss of £1,195,000.

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.

†

Level 3 investment (see note 15).

* The total fair value of total return swap assets of long and short positions is £2,174,000.

** The total fair value of total return swap liabilities of long and short positions is £20,873,000.

AVI Global Trust plc / Annual Report 2023

GIR

Investment Review / Investment Manager’s Review

OUR EDGE

A sset Value Investors

specialises in ﬁ nding

companies which have

been overlooked or under-

researched by other

investors. Investments that

for one reason or another

are priced below their true

value but can be made into

proﬁ table performers. AVI

believes its strategy and

investment style differentiate

it from other managers in

the market because of the

following:

38 years’ experience of

long-term outperformance

following our distinctive

investment style (annualised

NAV total returns of +11.5%

since 1985*).

AVI actively looks for the

catalyst within a company

which will drive fundamental

change.

AVI promotes active

involvement to improve

corporate governance and

to unlock potential

shareholder value.

* Refer to Glossary on pages 103 to 106.

Please visit our website for more information:

www.aviglobal.co.uk

About Asset Value Investors

AVI Global Trust plc / Annual Report 2023

10,000 Black Interns

The 10,000 Interns Foundation

champions underrepresented

talent and promotes equity of

opportunity, offering students

and graduates paid internship

opportunities across a range of

UK industries.

TYREECE EWING

‘It’s a bittersweet moment to share that my

incredible journey at Asset Value Investors has

come to an end. I can’t believe how fast time

has ﬂ own but I guess time ﬂ ies when you’re

having fun!

During my time at AVI, I had the privilege

of working alongside a highly skilled and

supportive team. From day one, I was

entrusted with meaningful responsibilities

and given the opportunity to contribute to

important projects.

I am immensely grateful for the last six weeks

at AVI where I have enhanced my skills,

especially in producing valuation models

and pitching ﬁ nancial recommendations. My

exposure to different aspects of the ﬁ rm’s

operations have deepened my understanding

of the investment management industry.

A special mention to Wilfrid Craigie, Ross

McGarry and William Hawkes who have

been instrumental in my progress here. Their

guidance and expertise has massively helped

my progress and taught me many things.

A huge thank you to 10,000 Black Interns and

AVI for this incredible opportunity. I am truly

grateful for the support and encouragement

I received throughout my internship. Looking

forward to staying connected and continuing

to learn more about the industry.’

AVI Global Trust plc / Annual Report 2023

The 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 businesses

trading at wide discounts to their net asset

value 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 the

value in those companies, we are well placed

to beneﬁ t. In the short term, this means that

there could be some volatility in our returns.

However, we are conﬁ dent that we own high-

quality businesses, which are trading on cheap

valuations.

Members of the investment team at AVI invest

their own money in funds which they manage.

As at 30September 2023, AVI’s investment

team owned 1,118,477 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 to

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 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 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 ﬁ rst is a high-quality portfolio of listed

and/or unlisted businesses with the potential

for sustained, above average, long-term

growth. Many of the underlying companies

that we have exposure to are world-famous

brands, and include: LVMH, Ferrari, Stellantis,

Universal Music, MGM Resorts, Aker BP, and

many more.

Secondly, we look for the presence of a

controlling family or shareholder with a strong

track record 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 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 one-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-ended funds gives us

exposure to many quality companies, such

as Chipotle Mexican Grill, Hilton Worldwide,

Universal Music Group, Canadian Paciﬁ c

Railway 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 probability 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. Historically, 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 have

largely been in Japanese cash-rich operating

companies. At present, we hold positions in 13

Japanese operating companies which have, on

average, 64% 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 change are blowing in

Japan. The Japanese government has been

championing efforts to improve corporate

governance and enhance balance-sheet

efﬁ ciency, 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 principles of an

updated Corporate Governance Code, and

there is an identiﬁ able 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 beneﬁ t 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 our 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 7.5x 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 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 diversiﬁ ed portfolios

of high-quality assets. In each case, we have

sought to invest in companies where the

market has misunderstood or 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.

Overview of AVI’s investment philosophy

AVI Global Trust plc / Annual Report 2023

Investment Review / Promoting Sustainable Attitudes

OUR PURPOSE

Helping 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

responsible, accessible, and proﬁtable for

everyone – individuals, families, institutions,

private companies, and listed companies.

Financial returns matter but we are in a unique

position to inﬂuence positive change by

questioning the practices of the companies

we invest in for a more sustainable future.

OUR PHILOSOPHY

We are 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

strategy is not only integral to comprehensively

understanding each investment’s ability to create

long-term value, but aligned with our values as

responsible investors.

It is our view that a responsible approach to the environment,

society and governance is key to long-term sustainable

businesses. This guiding principle is embedded not only in

our investment philosophy but in how we manage Asset Value

Investors as a company.

ONE OF THE ORIGINAL 200

INVESTMENT FIRMS TO

SUPPORT THE 10,000 BLACK

INTERNS PROGRAMME

EMPLOYEES WITH EQUITY

OWNERSHIP IN AVI

41%

DIVERSITY OF WORKFORCE

2023

Number

2023

Male

Female



‘

’

‘

’

‘

’

A responsible approach

AVI Global Trust plc / Annual Report 2023

OUR PRINCIPLES

We are aligned with the PRI’s

belief that an economically

efﬁ cient, sustainable global

ﬁ nancial system is a necessity

for long-term value creation.

Such a system will reward long-term 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 conﬁ rmed our belief

in our duty to act in the best long-term interests

of our beneﬁ ciaries.

OUR APPROACH

As 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 built 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.

AVI Global Trust plc / Annual Report 2023

DEFINING ‘E’, ‘S’ & ‘G’

AVI has identiﬁ ed* the factors that

we believe are the most material

and relevant to our investments

and developed a bespoke ESG

monitoring system to track the

performance and progress of

our portfolio companies against

deﬁ ned ESG metrics.

We deﬁ ne environmental sustainability within

the context of:

• Environmental Impact

• Tackling Climate Change

• Sustainable Management

Our social focus is divided into:

• Dignity and 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 company’s impact and dependencies

on the environment and society, and the extent

to which these are being effectively managed.

Investment Period

ESG monitoring system built into our

proprietary database to ensure ESG factors

are considered alongside ﬁ nancial analysis.

Ongoing ESG assessments of portfolio

companies’ performance against deﬁ ned

ESG metrics. A scoring system is used to

assess 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 ﬂ agged.

Constructive engagement with boards

and management to help sustainably

increase corporate value by building

resilience to ESG risks and promoting

responsible business practices.

Pre-Investment

Exclusionary screening is not our guiding

framework, however there are certain

exceptions to this.

AVI will not invest in a company with direct

involvement* in:

• Tobacco

• Controversial Weapons

• Pornography

Or companies that engage in child labour

or human exploitation as deﬁ ned by the

relevant ILO conventions.

Assess company’s exposure to ESG risks

and opportunities, including climate-

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.

* Drawing on the World Economic Forum’s ‘21 core metrics’,

https://www.weforum.org/stakeholdercapitalism/our-

metrics

AVI became a signatory to the UN-supported

Principles for Responsible Investment (PRI)

on 9 April 2021.

* Whereby more than 5% of that company’s NAV is derived from

these activities.

Institutional Shareholders Services group of companies.

AVI Global Trust plc / Annual Report 2023

OUR STEWARDSHIP

Good 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 monitoring

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 corporate value in consideration of all

stakeholders and in the best long-term interest

of our clients.

Controversy Monitoring

Supported by ISS Norms Based Research,

we also closely monitor any controversies and

potential violations of international norms and

standards associated with our universe. Whilst

our hope is that controversies do not occur,

they can be a marker of how well a company’s

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 investee companies to

take meaningful action in addressing weaknesses

in the context of long-term value creation.

Investment Review / Promoting Sustainable Attitudes continued

100%*

TOTAL VOTED

100%

VOTED WITH MANAGEMENT

77%

AGT 2023 Proxy Voting Record**

* 6% of these votes were not ofﬁcially counted for technical reasons. ** As at 30/09/2023.

VOTED AGAINST MANAGEMENT

23%

AVI Global Trust plc / Annual Report 2023

HIGHLIGHTS FROM 2023

AVI published its Stewardship

and Voting Policy

AVI reported through the

PRI for the ﬁrst time

AVI will publish its ﬁrst

ESG Report

Policies and reports can be found

on our website: https://www.

assetvalueinvestors.com/

agt/#responsibleinvesting

Useful resources:

https://www.ccla.co.uk/mental-health

https://www.assetvalueinvestors.com/

process/esg-approach/

www.issgovernance.com/esg/

screening/

ACTIVE ENGAGEMENT

We 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 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

generic guidance, instead carefully analysing

the issue within the company’s particular

context and offering speciﬁc suggestions to

address weaknesses and sustainably enhance

corporate value.

COLLABORATIVE ENGAGEMENT

We recognise the

value of collaborative

engagement in

addressing collective

issues.

In January 2023, we joined CCLA’s global

initiative seeking to improve the corporate

approach to workplace mental health. LVMH,

one of our portfolio companies in the initiative’s

scope, have since taken signiﬁcant steps to

demonstrate their commitment.

Corporate

Mental Health

Benchmark

GOVERNANCE

61%

ENVIRONMENTAL

18%

Engagement Breakdown*

* % breakdown of total ESG engagements

(101) during FY23. Engagements with portfolio

companies may address multiple themes at once.

SOCIAL

21%

61%

AVI Global Trust plc / Annual Report 2023

AVI ESG Analyst

ESG cannot usefully be universally

applied; it must be carefully

considered within the context of

each company.

Esme Morter

ESG Analyst

AVI has traditionally focused on the ‘G’ in ESG

and has nearly 40 years’ experience engaging

constructively with boards and management

of portfolio companies to promote strong

governance practices. This expertise has

stood us in good stead when deepening our

approach to ESG.

We view strong governance as the foundation for effective

management of E & S issues. However, we do not take a hands-

off approach to the E & S. Indeed, although we prefer to conduct

our engagement in private, last year we submitted shareholder

resolutions at SK Kaken’s AGM, one of which addressed its failure

to transparently report and address its environmental impact, which

resulted in the company disclosing annual emissions for the ﬁrst time

in 2023.

ESG cannot usefully be universally applied; it must be carefully

considered within the context of each company. The system we

have developed complements our deep fundamental analysis and

readiness to constructively engage with companies in a highly

bespoke way, allowing nuance and honed judgement to drive our

actions. ESG is complex, interconnected and constantly evolving, and

we expect our approach to ESG to continue to actively evolve.

We are encouraged by TSI Holdings’ progress

in weaving sustainable practices into the fabric

of the company.

AVI ﬁrst invested in TSI Holdings, which owns a collection of

diversiﬁed apparel brands including PEARLY GATES, Margaret

Howell, HUF and Stüssy, in July 2022. TSI joined AGT’s portfolio in

January 2023 and we are now the largest shareholder with c. 8.6%

stake across all AVI funds. We have built a strong relationship and

constructive dialogue with the company, holding 14 meetings, visiting

its HQ in Japan, and sending a 43-page presentation, offering detailed

suggestions to address its undervaluation and build sustainable

corporate value.

Our approach to engagement is highly bespoke, looking at the

company as a whole and considering all drivers relevant to its

long-term success. Companies operating in the apparel sector are

exposed to heightened environmental and social risks. As part of

wider analysis on both ﬁnancial and operational enhancements,

our presentation identiﬁed a number of ESG-related improvements

regarding the visualisation and management of GHG emissions,

responsible supply chain management, diversity, employee training

and development, and performance linked pay.

TSI Holdings recognises that the majority of its impact on

the environment and society occurs in its value chain and is

demonstrating its commitment to managing this. The company has

partnered with Boost Technologies to develop a centralised mapping

and managing tool, covering all of the company’s more than 50

apparel brands, to monitor emissions and drive decarbonisation

across the entire supply chain. This commitment is bolstered by

TSI Holdings having its emission reduction targets approved by the

Science Based Targets initiative (SBTi) in October 2023.

The board and management continue to be receptive to our

suggestions and we are encouraged by their proactive mindset.

TSI Holdings’ share price has increased by 134% since we initiated

our investment. We continue to engage with the company on a wide

range of themes, and we see signiﬁcant opportunities to unlock value.

Read more of our insights on our website:

www.assetvalueinvestors.com/agt/about-the-trust/our-edge/insights/

ESME MORTER TSI HOLDINGS

AVIGlobalTrust

AVIGlobalTrust AVI-Global-Trust

@AVIGlobalTrust

AVI Global Trust plc / Annual Report 2023

In this market we believe

that hard work, a focus

on idiosyncratic catalysts

to unlock value, together

with our own activism,

are key tools to drive

returns.

Joe Bauernfreund

Chief Investment Ofcer

Investment Review / Investment Manager's Report

Performance Review

AVI Global Trust plc / Annual Report 2023

“I know it’s complicated.” - Christine Lagarde, President of the European

Central Bank.

Alan Greenspan, the former Chairman of the Federal Reserve, used

to talk of “Fedspeak” and the art of “purposeful obfuscation”. However,

in this case Ms Lagarde’s approach to communication is much simpler

and echoes what many investors have been feeling over the last year:

it is complicated!

Inﬂation remains stubbornly higher than desired and central banks have

been steadfast in their attempts to quell it, lifting interest rates to levels

few assumed probable only eighteen months ago. For the time being,

a recession remains the dog that hasn’t barked (yet!), although there have

been some signs of weakening activity over the summer, most notably in

Europe. In the last few weeks we have seen a sharp rise in bond yields,

particularly in the US, where markets have started to price in a “higher

for longer” outlook. The ramiﬁcations of this are likely large and have not

necessarily been felt yet.

All told this is a challenging environment for equities. However, those

taking a cursory glance at the returns of the major US indices would be

forgiven for having missed this, as (capitalisation weighted) markets have

been led higher by a narrow band of technology companies deemed

to be AI-beneﬁciaries.

Under the surface there has been more turmoil and the going has been

much tougher. Such an environment suits our style of investing and,

over the last 12 months, we have found an increasingly rich and varied

opportunity set. In this market we believe that hard work, a focus on

idiosyncratic catalysts to unlock value, together with our own activism,

are key tools to drive returns. Reﬂective of all this, during the year we

meaningfully deployed your Company’s gearing for the ﬁrst time since

late 2021.

Within this context AVI Global Trust’s NAV increased by +15.3%

on a total

return basis*. This compares to a +10.1% return for the MSCI AC World

ex-US index and a +10.5%

return for the broader MSCI AC World Index

(now our comparator benchmark).

It is worth highlighting the strong recovery in relative performance since

the interim report in March, outperforming the two indices by +9.6% and

+5.5% respectively. Of course, our aim is not to optimise performance

over six-month periods, nor do we expect to be judged over single

ﬁnancial years. Still, such performance is pleasing to see and validation

for holding course when the numbers didn’t look so pretty. Deviation from

the benchmark is a feature not a bug of concentrated high conviction

portfolios, and a prerequisite for success.

Performance has been driven by stock selection – something we believe

is coming back to the fore. Our high conviction larger weight holdings,

such as Apollo, KKR, FEMSA and Schibsted, have on average performed

better. The latter two are good examples of the types of idiosyncratic

“events” to which we are attracted – management teams and boards are

undertaking strategic and structural changes to unlock value.

We are also excited about opportunities where we can add value as an

engaged and active shareholder. This is particularly true in the London-

listed closed-ended fund market, where discounts are historically wide

and commentary about the continuing relevance of the sector is rife.

This provides a fertile hunting ground and we have built new positions in

Pantheon International and Princess Private Equity over the last year, whilst

also meaningfully adding to what was a small tail position in Hipgnosis

Songs Fund.

2023

2022

<£1 billion 31 29

>£1 billion – <£5 billion 31 30

>£5 billion – <£10 billion 11 11

>£10 billion 27 30

Equity portfolio value by market capitalisation

-50%

-45%

-40%

-35%

-30%

-25%

-20%

Sept 13 Sept 15 Sept 17 Sept 19 Sept 21

Sept 23

-50

-45

-40

-35

-30

-25

-20

Weighted average discount*

WEIGHTED AVERAGE DISCOUNT*

-35.0%

* For deﬁnitions, see Glossary on pages 103 to 106.

See Glossary. All performance ﬁgures in GBP.

Source / Estimated by AVI as at 30 September 2023.

ANNUALISED NAV 10 YEAR TOTAL RETURN

PER SHARE*

+9.6%

For further information, please turn to page 12 of the Annual Report

AVI Global Trust plc / Annual Report 2023

Despite broader enthusiasm from other investors, our performance

in Japan has been a relative weak spot over the last 12 months. Wacom

and Digital Garage have been notably poor performers, and a number

of our other holdings have failed to keep up with a strong market where

capital has principally ﬂowed to larger cap names. Disappointing local price

returns have been exacerbated by continued Yen weakness.

It is our expectation that Japan’s divergent monetary policy will not persist

indeﬁnitely. As and when this occurs the Yen will be a further tailwind

behind our backs. More generally we continue to be excited about the rich

opportunity set we ﬁnd in overcapitalised Japanese small caps, and the

role we can play in unlocking and creating value.

Looking ahead and borrowing a quote from the CEO of a US automaker

on a recent earnings call, the macro environment remains “opaque

at best”. Bond markets have increasingly started to reﬂect “higher for

longer” rates and we appear to be in a new epoch of non-zero interest

rates and a price for risk. Tail risk remains that the infamous “long and

variable” monetary policy lags bite unexpectedly, with the UK Liability

Driven Investment (LDI)-crisis and US banking crisis having highlighted how

systemic problems can suddenly emerge as liquidity conditions tighten.

Readers should know by now that our approach to investing is focused

on bottom-up stock picking. We are highly sceptical of the quality of our

macro insights and their utility in guiding investment decisions. As such

we remain focused on the fundamentals. Discounts – as indicated by our

35% portfolio weighted average discount – are at wide levels historically

associated with times of panic and market stress. Such starting valuations

provide a strong bedrock and give comfort in an uncertain world.

Overall, we continue to believe that we are in a challenging market

environment in which hard work, stock selection and engagement will

be differentiating factors. In this vein, we are cautiously optimistic about

the prospects for the concentrated-yet-diverse portfolio of high-quality-

yet-lowly-valued companies we have assembled, and the potential for

attractive long-term returns from the areas of the equity market on

which we concentrate.

Source / Belron

Investment Review / Investment Manager's Report continued

Performance Review continued

AVI Global Trust plc / Annual Report 2023

A UNIQUE INVESTMENT PORTFOLIO

D’Ieteren is a seventh-generation Belgian

family-controlled holding company whose

crown jewel asset is a 50% stake in unlisted

Belron, the global no.1 operator in the Vehicle

Glass Repair and Replacement (VGRR)

industry.

We have invested in D’Ieteren across our other funds since 2018

however liquidity was historically insufﬁcient for AGT to build a

meaningful stake. In March 2022, following the publication of

disappointing full year results, the shares fell -11% on a day the

MSCI Europe index was up +6%. We initiated a position the very

same day and have added to the position subsequently. In 2023

we added to the position to make it a top 10 holding.

The bulk (65%) of D’Ieteren’s NAV is accounted for by Belron, which

readers might be more familiar with as Autoglass (UK), Safelite (US) or

Carglass (EU). Belron is many multiples larger than competitors with

>40% US market share, giving it signiﬁcant scale advantages 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.

Increased windshield complexity and the requirement for Advanced

Driver Assistance System (ADAS) cameras to be recalibrated upon

replacement has re-accelerated top-line growth and taken margins

from 6% in 2018, when we visited the European Distribution Centre

in Bilzen, to 18% in 2022. We expect Belron to keep riding this wave,

with ADAS set to become a larger proportion of the global car parc,

supported by a legislative tailwind. Over the medium-term sales should

grow at a high single digit rate with margin expansion translating to mid-

teens growth in operating proﬁts. Longer-term a possible IPO will likely

help crystallise value, with the recent appointment of Carlos Brito – who

built AB InBev into a global behemoth – perhaps indicative of this plan.

Indeed, given the presence of private equity co-ownership at Belron we

believe some form of corporate event is probable in the coming years,

with management highly incentivised to increase the equity value, which

should act as a catalyst for D’Ieteren shares.

As well as this, D’Ieteren owns a collection of other smaller assets 1) a

40% stake in TVH Parts, a spare parts distributor focused on forklifts

and other industrial machinery; 2) a 100% stake in D’Ieteren Autos,

which distributes VW brands in Belgium; 3) a 100% stake in Moleskine,

the luxury notebook group; and 4) a 100% stake in PHE, a European

automotive spare parts distributor focused on the Independent

Aftermarket (IAM). Both TVH and PHE are more recent acquisitions, and

appear highly attractive, with defensive non-discretionary growth drivers,

strong market positions and the potential for accretive bolt-on M&A.

D’Ieteren contributed +0.18% to AGT’s NAV in 2023. The prospect for

earnings growth at Belron, as well as the strong outlook for D’Ieteren’s

other holdings, bode well for prospective NAV growth. At a 41%

discount, there is potential further upside from discount narrowing.

We are excited about prospective returns.

AVIGlobalTrust

AVI-Global-Trust

Read more of our insights on our website:

www.assetvalueinvestors.com/agt/about-the-trust/our-edge/insights/

AVI Global Trust plc / Annual Report 2023

@AVIGlobalTrust

Head of Research at AVI

Tom Treanor, AVI’s Head of

Research, considers the

opportunities in the Private

Equity/Venture Capital (PE/

VC) sector, where valuations

are cheap and discounts to

Net Asset Value (NAV) are

extraordinarily wide. Higher rates

and tighter credit markets may

have seen a slowdown in the

sector, but Tom explains why

that hasn’t had a direct impact

on AVI’s portfolio, 21.4%* of

which is made up of PE/VC

names.

Why is AVI looking at PE/VC

now?

Valuations – that’s the key driver for us.

We’ve been active in the sector for 15

years and it’s responsible for some of the

best returns across our portfolio, but our

exposure has waxed and waned in line with

opportunities. In the wake of the Global

Financial Crisis (GFC), a lot of companies

got themselves in trouble in the PE sector

and were trading on extraordinarily cheap

valuations and a very wide discount to

NAV. That’s when we were most active:

we tend to be contrarian investors, so

buying things when they’re cheap and a

little bit out of favour. Our exposure came

down over the following ﬁ ve years and

then ramped back up as discounts to NAV

have widened, and the opportunity set has

broadened for us.

Why is PE/VC speciﬁ cally

attractive to investment trusts

versus open-ended funds?

It comes down to a huge liquidity

mismatch. If you manage an open-ended

fund investing in AstraZeneca or Glaxo

etc., and your investors want their money

back, all you have to do is sell your shares

and hand their money back. But not all

assets are quite so liquid, such as open-

ended property-focused funds. Every time

there’s some sort of crisis – be it the GFC,

the Eurozone crisis or Covid, for example

– these property funds put up their gates

and prevent investors from redeeming

their shares. That’s because investors all

run for the exit at the same time and the

underlying assets aren’t liquid enough to

allow the managers to raise cash quickly

and fund those redemption requests.

A privately owned company is also a very

illiquid asset. That means the closed-ended

structure (such as an investment trust)

is the only structure that could possibly

work for privately held companies because

investors don’t redeem their shares. If

an investor wants to sell out of a closed-

ended fund, they sell out their shares in a

stock exchange to another investor and no

money goes in or out of the fund.

How does the current economic

environment affect your PE/VC

exposure at AVI?

We invest in PE and VC through publicly

quoted investment companies, so we don’t

have any direct private asset exposure

at all. There are about a dozen listed PE

companies on the London market and

those range from uberdiversiﬁ ed fund-of-

funds to concentrated single-manager

funds. Diversiﬁ ed fund-of-funds are

good proxies for the broader PE market

because there aren’t any idiosyncratic

factors present driving their share price or

discount.

Going into mid to late 2021, those funds

were trading at between 15% to 20%

discount to Net Asset Value (NAV). If

you look at them today, they’re trading

anywhere between 15% to 40% discount

to NAV. That change could be the market

saying valuations are stale and they’re

going to have to come down to meet share

prices, which means it isn’t a real discount.

But we happily take the other side of that

argument and think private valuations do

lag public markets, but that they lag on the

way up, too.

TOM TREANOR

Investment Review / Investment Manager’s Report continued

Market reaction is overdone

How does the current economic

environment affect your PE/VC

exposure at AVI? continued

Private NAVs didn’t creep up the same

way public markets did but there was an

essence of in-built equity valuation buffer.

The real damage we saw in public markets

was in the unproﬁ table tech sector, to

which PE isn’t particularly exposed.

Companies that have high free cash ﬂ ow

and are in defensive sectors have held

up much better than public markets, and

those tend to be overrepresented in PE

portfolios. As we only invest in quoted

investment companies, the ﬁ nancing

market drying up hasn’t really had much of

a direct impact on our portfolio companies

because their portfolios were all fully

formed by late 2021.

But we have seen a dramatic slowdown

in both the pace of these companies’ new

investments and in the pace of their exits.

That means we need to scrutinise the

balance sheets of our investee companies,

making sure they can withstand periods

where exits dry up, making sure they have

enough cash on the balance sheet to cope

with that sort of environment, and making

sure they have prudent banking facilities

in place. In an environment like this, the

metrics we use to analyse companies

change, so as the backdrop worsens,

we’re focusing on the balance sheet much

more than we were previously. The sell-off

in public markets and fears around PE and

VC has meant listed companies across

the board have become very cheap. So,

starting in early 2022, we ramped up

our PE and VC exposure; some of the

discounts to NAV are at extraordinarily

wide levels. Overall, while there are genuine

concerns out there and there are reasons

to be fearful, we think the market reaction

has been overdone.

The main difference

between PE/VC is

the maturity of the

companies in which

they invest.

Tom Treanor

Head of Research, AVI

Please visit our website for more information:

www.aviglobal.co.uk* Based on net assets.

AVI Global Trust plc / Annual Report 2023

PRINCESS PRIVATE EQUITY

(6.2% OF NET ASSETS)

During FY2023, we built a 10% stake in

Princess Private Equity (PEY), a London-listed

closed-ended fund managed by Swiss private

equity manager Partners Group (PG).

PEY invests in global buyouts on a co-investment basis alongside

Partners’ direct investing programmes.

A high dividend policy had kept Princess’ discount relatively narrow

until cash outﬂows from their FX-hedging programme forced a

suspension of the dividend in late-2022. We opportunistically built

our position in the wake of the sell-off that followed. The dividend has

since been restored and the share price has recovered, but we believe

there is room for further discount narrowing through engagement with

the Board and Manager.

AVIGlobalTrust

AVIGlobalTrust AVI-Global-Trust

Read more of our insights on our website:

www.assetvalueinvestors.com/agt/about-the-trust/our-edge/insights/

@AVIGlobalTrust

Source / Urupong

AVI Global Trust plc / Annual Report 2023

AGT invests in holding companies and closed-ended funds that in turn invest in listed and unlisted companies. We show below the top 20 holdings

on a ‘look-through basis’, i.e. the underlying companies to which we have exposure. For example, AGT owns a stake in Aker ASA, a Norwegian-

listed holding company, that accounts for 6.3% of AGT’s NAV. One of Aker ASA’s holdings is Aker BP, a Norwegian Oil & Gas company, which

accounts for 63% of Aker ASA’s own NAV. This translates to AGT having an effective exposure to Aker BP of 3.9% of AGT’s NAV. The table below

is an indication of the degree of diversiﬁcation of the portfolio.

Underlying

look-through Look-through

Look-through companies Parent company weight holding sector

KKR Fund Management Business KKR & Co 5.4% Asset Management and Custody Banks

FEMSA Comercio FEMSA 4.6% Food Retail

Nordic Marketplaces Schibsted B 4.4% Interactive Media and Services

Adevinta Schibsted B 4.1% Interactive Media and Services

Apollo Fund Management Business Apollo Global Management 4.1% Asset Management and Custody Banks

LVMH Christian Dior SE 3.9% Apparel, Accessories and Luxury Goods

Aker BP ASA Aker ASA 3.9% Oil and Gas Exploration and Production

Nihon Kohden Operating Business Nihon Kohden 3.1% Healthcare Equipment

Belron D’Ieteren Group 2.6% Specialized Consumer Services

Brookfield Asset Management Brookfield Corporation 2.2% Asset Management and Custody Banks

Wacom Operating Business Wacom 2.0% Technology Hardware, Storage and Peripherals

Universal Music Group Pershing Square Holdings, Bollore 1.7% Movies and Entertainment

Brookfield Property Group Brookfield Corporation 1.7% Real Estate Development

Athene Apollo Global Management 1.7% Asset Management and Custody Banks

Godrej Consumer Products Godrej Industries 1.7% Personal Products

Godrej Properties Godrej Industries 1.4% Real Estate Development

REA Group News Corp 1.3% Interactive Media and Services

Dow Jones News Corp 1.3% Interactive Media and Services

DTS Operating Business DTS 1.2% IT Consulting and Other Services

MGM Resorts International IAC 1.1% Casinos and Gaming

Top 20 Look-Through Companies

Investment Review / Investment Manager’s Report continued

Portfolio Review

Pershing Square Holdings: How the look-through analysis works

Pershing Square Holdings is a Euronext and London-listed closed-ended fund in which AGT invests. Although Pershing Square Holdings is just

one fund, it has investments in multiple different listed companies, providing your Company’s portfolio with exposure to a diversiﬁed collection

of businesses.

Estimated % of

Company name Pershing Square Holdings’ portfolio Geography Sector

Universal Music Group 21.7% Global Movies and Entertainment

Chipotle Mexican Grill 12.4% United States Restaurants

Lowe’s 11.6% United States Home Improvement Retail

Restaurant Brands 10.9% North America Restaurants

Alphabet 10.6% Global Interactive Media and Services

Hilton 9.4% North America Hotels, Resorts and Cruise Lines

Howard Hughes 8.7% United States Real Estate Development

Canadian Pacific Railway 8.1% North America Rail Transportation

Interest Rate Swaptions 5.5% United States

Fannie Mae & Freddie Mac 1.0% United States Commercial and Residential Mortgage Finance

AVI Global Trust plc / Annual Report 2023

US-listed alternative asset manager Apollo (APO) was our top contributor

over the ﬁnancial year, adding +275bps to NAV as its share price almost

doubled (+98% total return in USD vs +21% for the S&P 500). This was

despite the company being swept up in the banking sell-off in March 2023

on misguided concerns that failed to recognise important differences

between bank deposits and the annuity liabilities of Athene (Apollo’s

wholly-owned life insurance arm). We took advantage of the market

confusion to add to the position near the lows reached in March.

Taking a step back to our original investment case for Apollo, we believed

the business was poorly understood by the market when we ﬁrst initiated

a position back in April 2021 ahead of its announced merger with sister

company Athene Insurance. AGT shareholders with long memories may

recall that we had a very proﬁtable investment in Athene from 2012 to

2017 when it was a private investment held by a listed Apollo-managed

vehicle called AP Alternative Assets.

Life insurance businesses are understandably often lowly rated by the

market. But the reasons why they are so – unpredictable liabilities with tail

risks (e.g. long-term care) and hard-to-hedge liabilities such as Variable

Annuities – simply do not apply to Athene which has a highly focused

business model predominantly centred on ﬁxed annuities. As such,

Athene can be looked at as effectively a spread-lending business, earning

a spread between the rates paid on annuities and the yields earned on

its investments. Its ﬁxed income portfolio (95% of total assets) is 96%

investment-grade, with Athene seeking to earn a return premium from

complexity and illiquidity rather than from taking duration or additional

credit risk, and its return-on-equity has averaged 16% over the last four

years (in line with its target of mid-to-high-teens).

Life insurance businesses are also correctly perceived as being capital

intensive, and this was a source of some disquiet when the Apollo/Athene

merger was announced. But capital intensity is not a bad thing if one

is earning high returns on that capital; and, as we understood at the time,

a material proportion of Athene’s growth was likely to be funded by

third-party “sidecar” vehicles.

The market seems to increasingly have come round to our more positive

view on Apollo as evidenced by the strong share price performance over

2023 on the back of earnings upgrades. Higher rates have led to very

strong demand for annuities (unsurprisingly, people prefer to earn higher

rather than lower rates on their investments even if only in nominal terms)

with retail inﬂows on track to surpass 2022’s record of $20bn. At 30 June

2023, Athene had already had $15bn of inﬂows for the year.

To some extent, each of the listed alternative asset managers has made

a different bet: Blackstone on real estate; Ares on subordinated debt;

Brookﬁeld on infrastructure, etc. Apollo have focused on investment grade

private credit, a market that can be measured in the tens of trillions. It is

becoming increasingly understood that Athene is integral to this push. As

a life insurance business seeking to earn a return over and above that paid

out on its annuities and other liabilities, Athene needs safe (investment

grade) credit and – given its long-dated sticky liabilities – can invest in

private assets to earn an illiquidity premium.

This is where Apollo’s investments in origination platforms come into

play. These are attractive investments in their own right that sit within the

5% of Athene’s balance sheet allocated to alternative investments. In

the business of originating investment grade assets (aviation ﬁnancing,

mid-market lending, mortgages, supply chain ﬁnance, etc.) they ﬁnd a

natural home on Athene’s balance sheet and those of third-party insurance

companies and other institutions who draw comfort in the alignment of

interest from investing alongside Athene. In addition to one-off syndication

fees, Apollo is increasingly earning ongoing management fees from many

of these third parties establishing separately managed accounts.

Athene is at the heart of this ﬂywheel and provides Apollo a huge

advantage over peers in what CEO Marc Rowan has termed the

“Fixed Income Replacement Opportunity”, with the potential market for

investment grade private credit estimated at as much as $40 trillion.

Regulatory moves to increase capital requirements of the US banking

sector are expected to accelerate this, with JPMorgan CEO Jamie Dimon

suggesting that Apollo executives would be “dancing in the streets” due to

the measures.

Trading on just 11x 2024 expected earnings, we see considerable scope

for continued further upside for Apollo shares with the company on track

to hit its $1 trillion AUM target by 2026.

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions will not equal

quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106 for further

details.

Classiﬁcation

Holding Company

% of net assets

5.8%

Discount

-30%

% of investee company

0.1%

Total return on position FY23

(local)

94.4%

Total return on position FY23 (GBP)

78.5%

Contribution (GBP)

275bps

ROI since date of initial purchase

84.2%

Apollo Global Management

CONTRIBUTORS

AVI Global Trust plc / Annual Report 2023

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

* The stub represents the value of the remaining unlisted assets in a company after

subtracting the total value of listed assets and net debt from its market cap.

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

FEMSA added +258bps to returns during a period in which the company

completed its strategic review and took structural steps to unlock value

and reduce the wide discount at which the company trades. In this

context, the shares returned +78% as a +50% increase in the NAV was

boosted by a narrowing of the discount from 39% to 28%.

As readers may remember, we initiated a position in FEMSA in 2021, with

an investment case predicated on the highly attractive nature of FEMSA

Comercio – which operates Oxxo-branded convenience stores, and

other small-format retail stores, across Mexico and Latin America – and

the unduly low valuation the market was awarding the business. In 2022

management announced a “comprehensive strategic review” of the group

structure with a focus on reducing the sum-of-the-parts discount.

In February 2023, FEMSA concluded its strategic review – announcing

plans to simplify the group structure, monetise non-core assets and

re-focus on its core business. Most importantly, the company announced

plans to exit its stake in Heineken, which prior to the announcement was

worth some $7.8bn, or c.28% of FEMSA’s market cap. Following two

accelerated book builds in February and May, FEMSA has now fully exited

Heineken (bar €500m of shares underlying an exchangeable bond). In

addition, FEMSA announced the sale of Jetro Restaurant Depot (JRD)

for $1.4bn and in August it was announced that Envoy Solutions would

merge with BradyIFS, as a ﬁrst step in FEMSA exiting the business, with

a $1.7bn cash inﬂow and a 37% stake in the combined entity.

Despite strong performance we believe the shares remain cheaply priced,

with the underlying intrinsic value/NAV having compounded at a high

rate. This speaks to the attraction of ﬁnding investments that exhibit both

special situation-type catalysts and high-quality growth. It is this latter point

which is particularly important to us – asset quality and the prospect for

NAV growth are key to our style of investing. In this vein we believe that

Oxxo has one of the most robust retail models we have come across, with

a long growth runway, strong unit economics and high returns on capital.

New store openings are now running above 1,000 on a trailing 12-month

basis once again, and we believe the company can reach c.30,000 units in

Mexico by the end of the decade (from just shy of 22,000 currently), with

strong prospects for further potential growth in Brazil.

At current prices, FEMSA trades at a 28% discount to our estimated

NAV and with the stub* at an inordinately wide discount to closest-peer,

Walmex (8.7 x vs. 11.9x). Pro-forma of the JRD and Envoy Solutions

transactions, we estimate that FEMSA is now in a modest net cash

position vs. management’s target of 2.0x net debt/EBITDA. This implies the

company has “excess” capital of c.$7bn equating to c.18% of its market

cap. Investors, not entirely without reason, are cautious over how this will

be deployed, and we have been encouraging management to use the

proceeds for share buybacks.

Classiﬁcation

Holding Company

% of net assets

6.3%

Discount

-28%

% of investee company

0.3%

Total return on position FY23

(local)

76.9%

Total return on position FY23 (GBP)

61.9%

Contribution (GBP)

258bps

ROI since date of initial purchase

68.8%

FEMSA

CONTRIBUTORS

AVI Global Trust plc / Annual Report 2023

In the summer of 2022 we initiated a new position in Schibsted,

the Norwegian holding company. Today Schibsted is AGT’s largest

position and was one of the strongest contributors to your Company’s

performance, adding +233bps to returns. Over the course of the year the

shares increased +63%, as a +35% increase in the NAV was boosted

by a narrowing of the discount from 45% to 34%.

Whilst the origins of the company date back to a publishing business in the

1830s, from the turn of the millennium, Schibsted have built and bought a

collection of online classiﬁed advertising businesses, which today account

for the bulk of the value. This is spread across Schibsted’s unlisted Nordic

assets (52% NAV), and a stake in Adevinta (49% NAV) which they listed in

2019 as a vehicle to house their international classiﬁed ads businesses and

pursue sector consolidation (which it has done via the acquisition of eBay’s

classiﬁed ads business for $9.2bn in 2020).

Such businesses exhibit “winner-takes-most” dynamics, with strong

network effects whereby listing inventory and user trafﬁc mutually reinforce

one another. The dominant #1 player in a category becomes the reference

point for individuals or businesses looking to buy and sell in that vertical.

This integral position translates into high levels of pricing power and

excellent ﬁnancial proﬁles, with healthy organic growth rates, EBITDA

margins of 40-60% and high free cash ﬂow conversion.

Attune to these attractions we had monitored Schibsted from afar for a

number of years. However, it took a more than 60% decline in the share

price from the summer of 2021 to June 2022 to pique our interest. Both

Schibsted and Adevinta had been caught in a perfect storm of earnings

downgrades and multiple compression. On top of this, at the Schibsted

holding company level investors had increasingly questioned capital

allocation and the group structure.

As such, we were able to build a position in the B shares at a c.45%

discount to our estimated NAV and with the stub assets trading at an

anomalously low implied c.6x forward EV/EBITDA. It was, and is, clear in

our view that resolving the ownership stake in Adevinta (which accounts

for ~two-thirds of Schibsted’s market cap) is key to unlocking the trapped

value, with either an in-specie distribution or sale of Adevinta suitable

outcomes to both re-rate the stub and help realise a fair value for the

Adevinta stake.

In September 2023 it was conﬁrmed that Blackrock and Permira have

made a non-binding proposal to take Adevinta private. This will see

Schibsted crystallise a large portion of its value, whilst also retaining a

stake in the private company. Of course, the devil will be in the detail, with

the pertinent questions being around price and the size of the stake that

Schibsted will retain.

The deal will allow Schibsted to garner a control premium (albeit an

unknown one) and remove some of the friction of an in-specie distribution.

Most importantly, it will go some way to simplifying the group structure,

shining a light on the undervaluation of the stub assets.

On the other hand, this raises the risk of capital (mis)allocation – something

we will continue to discuss with Schibsted management. We are also frank

about the low value the market will likely ascribe to Schibsted’s remaining

unlisted stake in Adevinta. Indeed, it is our contention that the ideal

scenario would be for Schibsted to wholly exit Adevinta – either via this

transaction, or, failing that, through an in-specie distribution. However, we

acknowledge that the return on the retained position has the potential to

be highly attractive, with signiﬁcant low hanging fruit from non-core asset

sales (OLX Brazil plus Italy and maybe Spain); improving monetisation rates

at Mobile and Leboncoin, which currently under-earn relative to global

peers and the economic utility they provide; and improving margins with

tighter cost control (particularly at HQ which runs to tune of ~€250m p.a.).

Schibsted remains cheaply valued at a 34% discount to NAV and with

the stub trading at 6.7x NTM EBITDA. Further news on Adevinta will be

the key catalyst to drive both NAV growth and discount narrowing. We

remain excited about prospective returns and continue to engage with the

company and other stakeholders to ensure that a satisfactory outcome is

achieved. It is important that any transaction ﬁxes the undervaluation of

both Adevinta and Schibsted shares.

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

CONTRIBUTORS

Classiﬁcation

Holding Company

% of net assets

8.6%

Discount

-34%

% of investee company

2.2%

Total return on position FY23

(local)

43.9%

Total return on position FY23 (GBP)

34.9%

Contribution (GBP)

233bps

ROI since date of initial purchase

24.8%

Schibsted B

AVI Global Trust plc / Annual Report 2023

Source / Schibsted

Schibsted / Adevinta

Adevinta owns a collection of high-quality

classiﬁ ed ads businesses that exhibit dominant

network effect-protected positions, which

translates into signiﬁ cant pricing power and

considerable organic growth, with prospects

for high-teen EBITDA growth in the years

ahead as margins expand and monetisation

levels improve.

% OF NET ASSETS

8.6%

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

AVI Global Trust plc / Annual Report 2023

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

KKR was amongst our largest contributors for the year, adding +177bps

to returns on the back of a share price that ended the period +45% higher

(total return in USD) vs +21% for the S&P 500 Index. The investment was

one of our largest detractors in AGT’s previous ﬁnancial year, and a top

contributor in the year before that. Less long-windedly, KKR’s share price

is volatile.

Share price performance suggests investors view alternative asset

managers as high beta plays on risk assets. Our contention is that this

ignores the defensive characteristics of scale-advantaged managers,

and the structural growth trends the industry exhibits.

The current assets under management (AUM) that alternative asset

managers have is for the most part long-term, or even permanent, and

so the risk of redemptions is very limited. In the case of KKR, over half

of its AUM is either perpetual capital or long-dated strategic investor

partnerships (separately managed accounts in which capital is recycled

following exits); just 9% of AUM is from vehicles with a life of less than

eight years at inception.

This gives rise to a high level of visibility on future earnings. We note

that KKR’s fee-related earnings per share for H1-2023 grew +7%, with

the non-cyclical management fees component increasing by +16%.

Secular trends towards greater institutional allocations to alternatives,

particularly in private credit and infrastructure, are a forceful tailwind for

the industry. Against that backdrop, we expect the largest players such

as KKR to take a disproportionate share of that growth as LPs look to

consolidate their number of LP relationships. While there is certainly

some indigestion across LPs after record fund-raising years, KKR is in

the enviable position of having already raised the latest iteration of its

ﬂagship funds.

CONTRIBUTORS

Classiﬁcation

Holding Company

% of net assets

6.8%

Discount

-27%

% of investee company

0.2%

Total return on position FY23

(local)

44.5%

Total return on position FY23 (GBP)

32.2%

Contribution (GBP)

177bps

ROI since date of initial purchase

135.1%

KKR & Co

Blackstone’s success in raising capital from private wealth channels has

materially raised the total addressable market for the alternative asset

managers. While KKR’s presence in this space is still relatively nascent,

they have invested heavily in distribution and expect 30-50% of new

KKR capital to be sourced from private wealth channels over the next

several years. The size of the market is so vast that even a small up-tick

in allocations to alternatives could have seismic results, with an expected

increase from 1% in 2020 to 5% in 2025 translating to an additional $9

trillion of inﬂows. We expect there to be only a few winners in this space,

consisting of the largest managers with the most recognised brands.

Despite these tailwinds, KKR trades on less than 20x fee-related

earnings. Note this multiple is calculated only accounting for accrued

carried interest, so giving no credit for additional carry earned on existing

funds and on future funds. This compares very favourably to peers, and

to other ﬁnancials companies of similar quality (i.e. growth and margin

characteristics). With Blackstone having become the ﬁrst alternative asset

manager to enter the S&P 500, we believe it is a matter of time before KKR

and Apollo are also selected for inclusion. This could lead to as much as

20% of their free ﬂoat being bought by index-tracker and “index-aware”

investment vehicles.

AVI Global Trust plc / Annual Report 2023

EXOR was a meaningful contributor to returns. Over the last year EXOR

shares have marched +28% higher, driven exclusively by NAV growth,

with the discount broadly unchanged at 43%.

In last year’s Annual Report, we described a situation of strong

performance at Ferrari being offset by “hard to justify” weakness at

Stellantis. This year both contributed strongly, with share price total returns

of +47% and +62%, respectively.

Performance at Stellantis is particularly pleasing, with the industrial and

ﬁnancial logic of the merger shining through. Longer-term readers of our

letters may remember that the extreme undervaluation of FCA (as it then

was) and the scope for value creation through industry consolidation

were key attractions that initially led us to invest in EXOR in 2016. For

Stellantis’ 2022 results the company reported a 13.0% operating margin

and achieved €7.1bn of net cash synergies – exceeding the €5bn

merger target more than two years ahead of plan. The consensus view

amongst investors is that the auto industry faces a period of deﬂation, with

increased supply leading to higher dealer inventory and in-turn weaker

pricing – which will dilute margins/earnings from unsustainably high post-

pandemic levels. We have long held the view that it is in a more challenging

environment that Stellantis’ structural margin improvements and Carlos

Tavares’ obsessive focus on cost will shine through. With the shares

trading at just 3.5x PE the market does not seem to be pricing this in.

During the year EXOR built a 15% stake in Philips, the (rather beleaguered)

Dutch healthcare-focused conglomerate. Philips shares trade c.60%

below their April 2021 high following a disastrous product recall, an FDA

consent decree and unknown potential legal claims relating to concerns

that sound abatement foam within its devices could disintegrate and

cause health problems. We believe the investment meets the key criteria

EXOR were looking for: reducing the cyclicality of EXOR’s NAV exposure;

gaining inﬂuence without paying a control premium, with potential further

capital allocation opportunities if the company were to raise equity; and

signiﬁcant self-help opportunities that EXOR can push to support from the

board – from improving governance, to improving operational procedures

and longer term questions about unlocking value from the Personal Health

(toothbrushes/shavers) business that has limited synergies with the rest of

the group.

Despite its strong NAV performance, EXOR’s discount remains wide at

43%. In recognition of this fact the company recently launched a €1bn

(5% market cap) buyback program, €750m of which will be structured as

a Dutch tender offer. We will not be taking part, having already reduced

the position materially earlier in the year to free up capital for new ideas.

Indeed, notwithstanding the reduction in our position, we believe the

outlook for NAV growth and discount narrowing to be attractive.

Classiﬁcation

Holding Company

% of net assets

2.0%

Discount

-43%

% of investee company

0.1%

Total return on position FY23

(local)

20.7%

Total return on position FY23 (GBP)

19.8%

Contribution (GBP)

147bps

ROI since date of initial purchase

42.5%

EXOR

CONTRIBUTORS

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

AVI Global Trust plc / Annual Report 2023

Source / Philips UK and Ireland

EXOR/Philips

Philips is a Dutch healthcare-focused

conglomerate, in which EXOR built a 15%

stake in 2023. The shares trade c.60%

below their April 2021 high following high-

proﬁle issues with the disintegration of sound

abatement foam within its devices causing

possible health issues. The investment

diversiﬁes the cyclicality of EXOR’s NAV

and offers ample opportunity for EXOR to

add value as an engaged and active board

member – from improving governance, to

improving operational procedures and longer

term questions about unlocking value from

the Personal Health business.

% OF NET ASSETS

2.0%

AVI Global Trust plc / Annual Report 2023

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions will not equal

quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106 for

further details.

* The weight shown reﬂects the long exposure calculated from the shares underlying

the swaps.

Wacom was your Company’s second largest detractor in 2023, reducing

returns by -78 bps. Wacom is a Japan-listed company which holds

c.60% global market share in the niche market of tablets and pens for

professional use, designed to emulate the feel of pen and paper while

drawing on a screen. AGT has invested in Wacom since August 2021

and has experienced a total return of -30.4% over this period.

Weak consumer sentiment and inﬂation in the North American and

European regions, as well as semiconductor-related logistics disruptions,

created signiﬁcant headwinds for the consumer electronics industry.

Wacom’s ﬂagship LCD graphic tablets were particularly affected by the

economic downturn due to their relatively long replacement cycle of

approximately ﬁve years, which has been prolonged further due to the

deterioration of consumer sentiment.

In May 2023, Wacom’s management disclosed a recovery plan to respond

to this situation, announcing eight measures, including improving cash ﬂow

by signiﬁcantly reducing inventories and increasing unit prices by up to

30%.

Dissatisﬁed with Wacom’s performance, AVI has been strengthening its

engagement with members of the Board, engaging on average at least

once a month. Following these dialogues, the company announced a new

share buyback, totalling up to JPY20bn to date. Out of the total buyback

budget, approximately JPY14bn has not yet been implemented, equivalent

to 15.1% of the company’s market capitalisation. These buybacks are

expected to be undertaken by the end of March 2025.

While peer forward EV/EBIT multiples average 16x, Wacom’s EV/EBIT

multiple based on company targets for the ﬁnancial year ending March

2025 is 11x and just 8x for the following year. There has been no signiﬁcant

change in the company’s global positioning through the Covid-19 period,

and the company plans to launch a series of new products, including

the Wacom One series, from early autumn 2023, indicating that it is

implementing measures to stimulate consumer demand.

Overall, we expect the digitisation of the global design market to continue,

and remain conﬁdent that Wacom, in its position as market leader, will be

at the forefront of innovation in this segment.

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

Classiﬁcation

Asset-backed Special Situation

% of net assets

2.3%

Discount

-38%

% of investee company

4.7%

Total return on position FY23

(local)

-13.7%

Total return on position FY23 (GBP)

-23.3%

Contribution (GBP)

-78bps

ROI since date of initial purchase

-30.5%

Brookﬁeld Corporation was our largest detractor over the ﬁnancial year,

reducing NAV by 103bps. Note that this ﬁgure is the aggregated net

impact from the long position in Brookﬁeld Corporation and the short

positions in index and underlying holdings established as hedges.

To recap, AGT acquired a position in what was then called Brookﬁeld

Asset Management in December 2022 ahead of the spin-off of a 25%

stake in its asset management business. What was Brookﬁeld Asset

Management has been renamed Brookﬁeld Corporation (BN); the

spun-off asset management business has taken on the name of its

parent company (BAM).

Our research highlighted that BAM (as it was) was trading at a dislocated

valuation and that either (i) the asset management business was being

valued on too cheap a multiple or (ii) the discount on the other assets was

too wide. Share price moves subsequent to the spin-off proved the latter

to be the case, and we sold our stake in the spun-off asset-management

business to acquire more of the more attractively-valued Brookﬁeld

Corporation.

We have taken out short positions in most of the listed underlying

holdings (Brookﬁeld Asset Management, Brookﬁeld Renewable Partners,

and Brookﬁeld Infrastructure Partners), accounting for 54% of NAV at

the time of writing. In doing so, our exposure is limited to the underlying

unlisted assets and will mean that a higher proportion of our prospective

returns will come from discount moves than would otherwise be the case.

The main unlisted assets to which we are exposed are Brookﬁeld

Corporation’s real estate holdings which account for 36% of NAV at the

current reported valuation. There is considerable scepticism around this

valuation given the headwinds facing ofﬁce properties due to work-from-

home trends and regulatory-driven upgrades to environmental standards.

Indeed, much of the company’s properties are in ofﬁce and retail. We

understand these concerns but we contend that, with a materially negative

value implied on the real estate by Brookﬁeld Corporation’s share price, the

shares are attractively valued. To illustrate this, the equity value for the real

estate could be cut by 75% and the discount to NAV on which Brookﬁeld

Corporation trades would still be almost 30%.

Management have several levers to pull to address the undervaluation.

These include further spin-offs of the remaining 75% stake in Brookﬁeld

Asset Management and more aggressive share buybacks.

Classiﬁcation

Holding Company

% of net assets

5.1%*

Discount

-48%

% of investee company

Total return on position FY23

(local)

Total return on position FY23 (GBP)

Contribution (GBP)

-103bps

ROI since date of initial purchase

-13.0%

Brookﬁeld

(Long Brookﬁeld Corp/Short Listed Underlyings)

DETRACTORS

Wacom

AVI Global Trust plc / Annual Report 2023

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions will not equal

quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106 for

further details.

Third Point Investors (TPOU) was, for the second consecutive year, one

of the largest detractors from overall returns. Weak NAV performance

(-2%) compounded with a widening discount (-17% to -20%) to produce

a -6% decline in share price, far behind the returns of the S&P 500 (+21%)

and the MSCI AC World Index (+21%). Returns for AGT in Sterling were

depressed further by GBP strength vs the US Dollar.

Low double-digit positive returns from the credit book were insufﬁcient

to offset weak returns from the equity exposure where the Manager

underperformed on both long and short exposures.

TPOU’s short- and long-term performance track record is now deeply

uninspiring with the vehicle having outperformed the S&P 500 in just four

out of seventeen calendar years and far behind the index over all time

periods to 30 September 2023. Over ten years, an annualised NAV total

return of +4.4% falls well short of the +11.9% from the S&P 500 and the

+8.3% from the MSCI World. While NAV volatility has generally been lower

than equity indices, we do not believe that offers any great appeal for

potential buyers of what has almost always been a majority equity-exposed

strategy.

Shareholders may recall that AGT also owned a direct position in the

Third Point Offshore Master Fund that underlies TPOU. This was acquired

as a result of our participation in an exchange facility offered to TPOU

shareholders in early 2022 that allowed qualifying shareholders to

exchange a portion of their TPOU shareholding for shares in the Master

Fund at a 2% discount to NAV. This saw 43% of our position exchanged

for shares in the Master Fund, and we have since redeemed this holding at

the maximum permissible rate and exited entirely in June 2023.

For our remaining position in TPOU, we draw some solace from the tender

offer for 25% of the company’s shares scheduled for Q2 2024. This is

triggered if the average discount for the six months to the end of March

2024 exceeds 10%. Given that the current discount is 21%, we do not see

any plausible scenario in which this tender offer will not be triggered. We

plan to participate in full.

We expect the tender offer to be over-subscribed, leaving the fund not only

25% smaller in terms of net assets, but with the market aware of a large

overhang of selling pressure. With no further exit opportunity until March

2027 and with an increased exposure to private investments, we would be

surprised if the discount did not widen materially post-tender.

In this scenario, it is entirely appropriate that the share buyback

programme should continue given the high return on investment from

share repurchases, but we are mindful that this will have a further

deleterious impact on already woeful liquidity. We expect to see the

company then limp on until the next discount-contingent tender offer (at

a tighter threshold of 7.5%) scheduled for March 2027 which, barring a

remarkable turnaround in performance and sentiment, is also highly likely

to be triggered. With no further exit opportunities scheduled thereafter, the

discount is likely to widen yet further.

We believe there is a strong case for intervention from the Board to steer

the company away from what seems to be an inevitable course.

DETRACTORS

Classiﬁcation

Closed-ended Fund

% of net assets

2.6%

Discount

-20%

% of investee company

4.1%

Total return on position FY23

(local)

-1.1%

Total return on position FY23 (GBP)

-9.5%

Contribution (GBP)

-68bps

ROI since date of initial purchase

33.2%

Third Point Investors

AVI Global Trust plc / Annual Report 2023

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

Aker was also a detractor from returns over the last year. On a total return

basis shares and NAV declined -2.7% and -3.4% respectively with the

discount moving slightly narrower to 24%. From AGT’s perspective this

was exacerbated by a -700bps depreciation of the NOK versus Sterling.

The rather modest year-over-year change in Aker’s share price and NAV

masks greater volatility in oil prices and related equities. From a November

2022 peak, oil prices fell some -24% to a spring trough, only to rally +36%

through to the end of September 2023. Shares in Aker BP (62% of NAV)

were similarly volatile but ended down by -3% on a total return basis.

We continue to believe that oil will play an important and elongated role

in our energy mix in the coming decades. In this context we believe the

prospects for well-managed, low-cost operators with long production

growth schedules such as Aker BP to be attractive. This led us to more

than double our position in Aker since the start of 2020.

Although there is grave uncertainty in the near-term, as evidenced by the

steep decline in oil prices shortly after the end of the ﬁnancial year, demand

for oil will grow resiliently over the coming decade. A conﬂuence of capital

destruction, ESG policies, and the demise of Shale have ﬁrmly put the

power with OPEC+, which has shown considerable appetite for ﬂexing

its muscles over the last twelve months. With limited spare production

capacity and a much-depleted US Strategic Petroleum Reserve, OPEC’s

dominance will be a feature of the coming years.

We expect such an environment to be characterised by generally higher,

albeit likely quite volatile, oil prices. Aker BP will beneﬁt from this, as

they embark on a signiﬁcant production growth plan. In turn these cash

ﬂows can be returned to Aker through dividends (with Aker BP’s dividend

growing +10% year-over-year) and invested in higher growth/higher

terminal value businesses. Over the last year, Aker have experienced some

road bumps in this regard, with shares in Aker Horizons, the renewables

holding company established in 2020, declining by some two-thirds

(and now accounting for just 3% of NAV). This speaks to the operational

complexity of solving the climate crisis and the capital required to get there

– something which becomes more relevant when risk free rates are no

longer zero.

DETRACTORS

Classiﬁcation

Holding Company

% of net assets

6.3%

Discount

-24%

% of investee company

1.7%

Total return on position FY23

(local)

-2.3%

Total return on position FY23 (GBP)

-7.8%

Contribution (GBP)

-61bps

ROI since date of initial purchase

75.4%

Aker ASA

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

AVI Global Trust plc / Annual Report 2023

Source / Aker BP

Aker ASA/Aker BP

Aker BP is a listed E&P company operating

on the Norwegian Continental Shelf. The

company is a low-cost-low-emission oil

producer, with an attractive production growth

schedule. We believe oil will likely play an

important and extended role in the energy

transition.

% OF NET ASSETS

6.3%

AVI Global Trust plc / Annual Report 2023

Having been the most signiﬁcant detractor from returns last year, IAC –

the North American holding company controlled by Barry Diller – was also

a detractor from returns this year. Over the course of the year the shares

declined -9%, as a -15% decline in the NAV was partially sheltered by

a narrowing of the discount from 41% to 37%.

In last year’s Annual Report we wrote: “So what’s gone wrong? The short

answer is lots”. This year fewer things have gone wrong, and there are

green shoots of improvement, but nothing has gone right as such, and

investors remain highly sceptical about the extent to which key assets

Angi (12% of NAV) and Dotdash Meredith (10%) can drive both top and

bottom-line growth.

In IAC CEO Joey Levin’s quarterly letter at the start of the year, he talked

of a “back to basics” strategy. This has clearly been evidenced at Angi, the

home services marketplace. Since becoming CEO of Angi a little under

a year ago, Levin has steadied the ship. Measures to reduce the cost

structure have been implemented. There have been meaningful reductions

in sales team headcount, and over the ﬁrst half of 2023 capex has been

cut by nearly two-thirds. He has started to simplify the product offering and

ambition, turning losses from Services from -$13m in the second quarter

of 2022 to proﬁts of +$2m this year, as they exit un-economic offerings.

Arguably this is the “easy” bit and the next stage of showing the business

can successfully drive top-line growth is the hard bit – with the jury very

much still out as to whether this is possible. That said, the “easy” bit is not

to be sniffed at – after all the company churned through three CEOs in ﬁve

years who couldn’t do it! With earnings starting to ramp up, we believe

this creates a base from which value can be grown and extracted. At the

current $1.1bn enterprise value – which equates to 0.7x trailing sales and

~8x next year EBITDA – we believe the business could be of interest to

ﬁnancial buyers given the attractive cash generative nature of the core Ads

& Leads business and room for cost cutting from non-core areas. This

would be an attractive outcome for IAC shareholders, giving the company

signiﬁcant capital to allocate. Alternatively, although sceptical, we remain

open minded to Joey Levin continuing to drive fundamental improvements,

re-igniting growth and margins – something to which the market doesn’t

appear to be assigning a high probability.

Turning to Dotdash Meredith (10% of NAV) – the digital media company

that was established in 2021 when IAC’s Dotdash acquired the storied

media brands of the Meredith Corporation – there are also signs of

improvement. Whilst 2022 had always been billed as a transition year, a

deterioration in ad markets, compounded by a much slower and more

complex than anticipated integration, meant the ﬁrst twelve months of

ownership were ones to forget. In 2023 the integration issues are now

behind them, with the focus now solely on navigating a challenging

macro environment. In aggregate, management describe the ad market

as being in a state of “stable weakness”, albeit with signiﬁcant variation

by category. We remain somewhat cautious on the heavy lifting that the

second half of the year will have to do for Dotdash Meredith to reach

management guidance of $250-300m adjusted EBITDA but, given the high

incremental margins the business earns, are excited about the prospects

for meaningful recovery in earnings and growth over the medium term –

validating the acquisition.

Whilst at 37% the discount is narrower than it was a year ago, it

remains wide both in absolute terms and relative to history. As the

“anti-conglomerate conglomerate” with a history of spinning assets to

shareholders, which acts as a pull to par, we believe the fair discount is

much closer to zero. Combined with the prospects for improved earnings

growth, prospective returns appear attractive. Management seem to agree,

having bought back 3.7% of shares outstanding between February and

May 2023. With net cash equalling c.18% of market cap, we believe there

should be more of this.

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

Classiﬁcation

Holding Company

% of net assets

3.3%

Discount

-37%

% of investee company

1.0%

Total return on position FY23

(local)

-26.3%

Total return on position FY23 (GBP)

-17.4%

Contribution (GBP)

-55bps

ROI since date of initial purchase

-41.9%

IAC

DETRACTORS

For deﬁnitions, see Glossary on pages 103 to 106.

Weighted returns adjusted for buys and sells over the year.

Figure is an estimate by the managers and sum of contributions

will not equal quoted total return over the ﬁnancial year.

Figure quoted in GBP terms. Refer to Glossary on pages 103 to 106

for further details.

AVI Global Trust plc / Annual Report 2023

Source / Turo

IAC/Turo

Turo is the world’s largest car-sharing

marketplace with operations across the US,

Canada, the UK, France, and Australia. Turo

is aiming to put the world’s 1.5bn cars to

better use, giving hosts the ability to rent

out their idle vehicles, and offering users

an unparalleled and convenient assortment

of vehicles. The company boasts a large

addressable market, strong network effects

and attractive unit economics.

% OF NET ASSETS

3.3%

AVI Global Trust plc / Annual Report 2023

Source / Comunicación Corporativa FEMSA

CATALYSTS TO UNLOCK & GROW VALUE

At Asset Value Investors we have followed

the same distinct strategy since 1985. We

invest in:

Durable businesses that will grow in value;

Trading at discounted valuations;

With catalysts to unlock and grow value.

Over the last year FEMSA, the Mexican family-

controlled holding company, has been one of

our strongest performers, taking considerable

steps to unlock the sum-of-the-parts discount

at which it trades.

The group structure – which entailed listed stakes in Heineken and

Coca Cola FEMSA, the world’s largest coke bottling business, as

well as an array of smaller unlisted assets – was overly complex and

highly inefﬁ cient. As such FEMSA traded at a meaningful conglomerate

discount, which expanded as group complexity increased, and

investors grew frustrated at the non-sensical structure.

In 2022 FEMSA announced a “comprehensive strategic review”, which

led us to increase our position.

In February 2023, the company concluded its strategic review,

announcing plans to simplify the group structure, monetise non-

core assets and refocus on its core business. Most importantly, the

company announced plans to exit its stake in Heineken, which prior

to the announcement was worth some $7.4bn, or c.28% of FEMSA’s

market cap.

Following two accelerated book builds in February and May, FEMSA

has now fully exited Heineken (bar €500m of shares underlying an

exchangeable bond). In addition, FEMSA announced the sale of Jetro

Restaurant Depot for $1.4bn and in August it was announced that

Envoy Solutions would merge with BradyIFS, as a ﬁ rst step in FEMSA

exiting the business, with a $1.7bn cash inﬂ ow and a 37% stake in the

combined entity.

We believe the simpliﬁ ed structure is likely to attract a lower

conglomerate discount, and the company has “excess” capital

approaching 20% of its market cap, which we are encouraging

management to return to shareholders in the form of buybacks.

Investment Review / Investment Manager’s Report continued

Portfolio Review continued

AVI Global Trust plc / Annual Report 2023

Outlook

In last year’s outlook we wrote “after a year of unprecedented ﬁ scal

and monetary stimulus in 2021, developed economies are now

waking up to the consequences: entrenched inﬂ ation, or a potential

recession to combat it”. In many ways this still applies – inﬂ ation and

recession continue to dominate investor thinking. The macroeconomic

environment has been and remains, decidedly tricky, with a multitude

of headwinds and risks.

Now, just as then, we remain focused on the bottom-up. In this regard

it is an environment we relish. Discounts, as evidenced by the 37%

portfolio weighted average discount*, have widened considerably to

levels comparable to those observed in the global ﬁ nancial crisis and

the Eurozone crisis. Importantly, we are seeing attractive opportunities

in all parts of the equity market in which we ﬁ sh. This is an idea rich

environment that is conducive to our style of investing.

We believe that stock picking, active engagement, and a focus on

investments with explicit catalysts stand us in good stead to drive

healthy absolute and relative returns. So, whilst the near term is

uncertain, we are increasingly enthused about long-term prospective

returns.

Joe Bauernfreund

Chief Executive Of cer

Asset Value Investors Limited

9 November 2023

Outlook

JOE BAUERNFREUND

CEO

TOM TREANOR

Head of Research

* Discount as at 31 October 2023.

AVI Global Trust plc / Annual Report 2023

Governance / Directors

Committee:

D NMA

Date of Appointment:

April 2017

Appointed Committee Chairman:

June 2017 (Audit), February 2023 (Nomination)

External Appointments:

Non-Executive Director and Audit Committee

Chairman of The Diverse Income Trust plc,

The Bank of London and The Middle East plc,

Ghana International Bank plc, abrdn Private

Equity Opportunities Trust plc and Baring

Emerging EMEA Opportunities plc*. Non-

Executive Director of Schroder Unit Trusts

Limited and Schroder Pension Management

Limited. He is also Chairman of The Tarbat

Discovery Centre (a Pictish museum) and a

trustee of Suffolk Wildlife Trust.

Experience and Contribution:

A qualified accountant with over 25 years’

experience in the financial services industry,

including 21 years as audit partner at Deloitte

LLP, specialising in the asset management sector.

Calum has wide ranging experience in auditing

companies in the asset management sector and

latterly as a non-executive director and audit

committee chairman. He is fully qualified to lead

the Company’s Audit Committee.

Last re-elected to the Board:

2022

Annual Remuneration:

£41,500

Employment by the Investment Manager:

None

Other connections with the

Company or Investment Manager:

None

Shared Directorships with any

other Company Directors:

None

Shareholding in Company

†

44,490 Ordinary Shares

Attendance at meetings

Name Board Audit

Management

Engagement Nomination Disclosure

Graham

Kitchen* 4(5) 3(4) 1(2) 3(3) – (–)

Anja

Balfour 5(5) 4(4) 2(2) 3(3) – (–)

Neil

Galloway 5(5) 4(4) 2(2) 3(3) – (–)

June

Jessop** 3(3) 2(2) 2(2) 1(1) – (–)

Calum

Thomson 5(5) 4(4) 2(2) 3(3) – (–)

Susan

Noble*** 2(2) 2(2) – (–) 2(2) – (–)

The number in brackets denotes the number of

meetings each was entitled to attend. The Disclosure

Committee did not meet during the period.

* Mr Kitchen was unable to attend the May 2023

meetings as he had been admitted to intensive

care that week.

** Appointed 1 January 2023.

*** Retired 20 December 2022.

† As at 9 November 2023.

* Mr Thomson intends to step down from his

position as Non-Executive Director and Audit

Committee Chairman of Baring Emerging EMEA

Opportunities plc in the near future.

Committee:

D NMA

Graham Kitchen succeeded Susan Noble as

Chairman in December 2022.

Date of Appointment:

January 2019

External Appointments:

Interim Global Head of Investment Strategy of

Perpetual Group, Chairman of Perpetual Asset

Management UK Limited and Trillium Asset

Management UK Ltd, Non-Executive Director of

The Mercantile Investment Trust plc and Places

for People.

Experience and Contribution:

Over 25 years’ experience as an investment

manager at Invesco, Threadneedle and, until

March 2018, Janus Henderson, where he was

Global Head of Equities. He was previously

Chair of the Investment Committee for the

Cancer Research Pension Fund, member of the

investment committee of Independent Age and

Chairman of Invesco Select Trust plc. Graham

is an experienced fund manager and Head of

Investments and brings to the Board experience

both of managing investments and of managing

teams of investment managers.

Last re-elected to the Board:

2022

Annual Remuneration:

£53,000

Employment by the Investment Manager:

None

Other connections with the

Company or Investment Manager:

None

Shared Directorships with any

other Company Directors:

None

Shareholding in Company

†

109,500 Ordinary Shares*

* 33,250 held by Jane Kitchen.

Committee membership key

Chairman

Member

Audit Committee

Management Engagement Committee

Nomination Committee

Disclosure Committee

GRAHAM KITCHEN CALUM THOMSON FCA

Independent Non-Executive

Chairman

Senior Independent Non-Executive

Director

Your Board

AVI Global Trust plc / Annual Report 2023

Committee:

D NMA

Date of Appointment:

January 2018

External Appointments:

Chairman of The Global Smaller Companies

Trust plc, a member of the Finance and

Corporate Services Committee of Carnegie UK

Trust and Non-Executive Director of Scottish

Friendly Assurance Society.

Experience and Contribution:

Over 20 years’ experience in managing

Japanese and International Equity portfolios for

Stewart Ivory, Baillie Gifford and Axa Framlington.

Previously Chairman of Schroder Japan Growth

Fund plc, a trustee of Venture Scotland and

a Non-Executive Director of Martin Currie

Asia Unconstrained Trust plc. Anja brings to

the Board experience of managing Japanese

portfolios, which is particularly relevant to the

Company’s Japanese equity investments, along

with experience of broader international funds

and, in recent years, as a non-executive director.

Last re-elected to the Board:

2022

Annual Remuneration:

£34,000

Employment by the Investment Manager:

None

Other connections with the

Company or Investment Manager:

None

Shared Directorships with any

other Company Directors:

None

Shareholding in Company

†

36,500 Ordinary Shares

Committee:

D NMA

Date of Appointment:

September 2021

Appointed Management Engagement

Committee Chairman:

February 2023

External Appointments:

Chief Financial Officer of Pepco Group N.V.

Experience and Contribution:

25 years’ experience living and working

internationally. Currently based in London, he

has spent most of his career working in Asia but

also has experience in the Americas, Europe

and the Middle East. Following a successful

banking career, he has held senior finance and

management roles, almost entirely with or for

family-controlled companies, overseeing finance,

treasury, risk management, legal, IT, projects

and business development, with experience in

significant business transformation programmes

in large and complex businesses. He was

previously Executive Vice President of IWG PLC

and an Executive Director and CFO of DFI Retail

Group Holdings Limited based in Hong Kong.

His industry experience spans banking, hospitality,

retail (mass market, luxury and franchise

operations), real estate and services industries.

Last re-elected to the Board:

2022

Annual Remuneration:

£34,000

Employment by the Investment Manager:

None

Other connections with the

Company or Investment Manager:

None

Shared Directorships with any

other Company Directors:

None

Shareholding in Company

†

40,000 Ordinary Shares

Committee:

D NMA

Date of Appointment:

January 2023

External Appointments:

N/A

Experience and Contribution:

Previously Senior Business Manager at

Stewart Investors and a member of the EMEA

Management Committee of First Sentier

Investors (of which Stewart Investors is a sub-

brand). June has spent 30 years in financial

services, gaining broad experience in portfolio

management, client relationship, business

development and, latterly, general management

roles. She has been an investment manager for

institutions, charities and private clients, including

managing assets of an investment trust and

investing in investment trusts on behalf of clients.

Elected to the Board:

2023

Annual Remuneration:

£34,000

Employment by the Investment Manager:

None

Other connections with the

Company or Investment Manager:

None

Shared Directorships with any

other Company Directors:

None

Shareholding in Company

†

28,000 Ordinary Shares

ANJA BALFOUR

NEIL GALLOWAY JUNE JESSOP

Independent Non-Executive

Director

Independent Non-Executive

Director

Independent Non-Executive

Director

AVI Global Trust plc / Annual Report 2023

The Directors present their report and the

audited ﬁnancial statements for the year ended

30 September 2023.

Status

The Company is registered as a public limited company as defined by the

Companies Act 2006 and is an investment company under Section 833 of

the Companies Act 2006. It is a member of the Association of Investment

Companies (AIC).

The Company has been approved as an investment trust under Sections

1158/1159 of the Corporation Tax Act 2010. The Directors are of the

opinion, under advice, that the Company continues to conduct its affairs

as an Approved Investment Trust under the Investment Trust (Approved

Company) (Tax) Regulations 2011.

The Company’s Investment Manager is authorised as an AIFM by the

Financial Conduct Authority under the AIFMD regulations. The Company

has provided disclosures on its website, www.aviglobal.co.uk/

disclosures, incorporating the requirements of the AIFMD regulations.

Review of the Year

A review of the year and the outlook for the forthcoming year can be found

in the Strategic Report and Investment Manager’s Review.

Investment Objective, Policy and Restrictions

The objective of the Company is to achieve capital growth through

a focused portfolio of investments, particularly in companies whose

shares stand at a discount to estimated underlying net asset value.

Investments are principally in companies listed on recognised stock

exchanges in the UK and/or overseas, which may include investment

holding companies, investment trusts and other companies, the share

prices of which are assessed to be below their estimated net asset value

or intrinsic worth.

Although listed assets make up the bulk of the portfolio, the Company

may also invest in unlisted assets with the prior approval of the Board.

The Company generally invests on a long-only basis but may hedge

exposures through the use of derivative instruments and may also hedge

its foreign currency exposures.

There are no geographic limits on exposure, as the Company invests

wherever it considers that there are opportunities for capital growth.

Risk is spread by investing in a number of holdings, many of which

themselves are diversified companies.

The Company will not invest in any holding that would represent more

than 15% of the value of its total investments at the time of investment.

Investment Objective, Policy and Restrictions continued

Potential investments falling within the scope of the Company’s investment

objective will differ over the course of market cycles. The number of

holdings in the portfolio will vary depending upon circumstances and

opportunities within equity markets at any particular time.

The Company is able to gear its assets through borrowings which may

vary substantially over time according to market conditions, but gearing

will not exceed twice the nominal capital and reserves of the Company.

Distribution Policy

Dividend Policy

The Company will ensure that its annual dividend each year will be paid

out of the profits available for distribution and will be at least sufficient to

enable it to qualify as an investment trust under the Corporation Tax Act

2010. The Board may elect to pay a special dividend if appropriate.

The Company’s primary objective is to seek returns which may come

from any combination of increases in the value of underlying investments,

a narrowing of discounts to underlying asset value and distributions by

investee companies. The Board does not set an income target for the

Investment Manager.

Frequency of Dividend Payment

The Company will normally pay two dividends per year: an interim dividend

declared at the time that the half year results are announced, and a final

dividend declared at the time that the annual results are announced.

The final dividend will be subject to shareholder approval at the Annual

General Meeting each year.

Buybacks

The Company may also distribute capital by means of share buybacks

when the Board believes that it is in the best interests of shareholders to

do so. Authority to buy back shares is sought from shareholders at each

Annual General Meeting.

Gearing Levels

The Company’s Investment Policy, as disclosed above, permits

a significant level of gearing, as do the Company’s Articles of Association

and the limits set under AIFMD (see the Company’s website

www.aviglobal.co.uk/disclosures).

Under normal market conditions, it is expected that the portfolio will be fully

invested, although net gearing levels may fluctuate depending on the value

of the Company’s assets and short-term movements in liquidity.

The Company’s debt as a percentage of total equity as at 30 September

2023 was 13.7%. Long-term debt comprised five tranches of Loan Notes,

of £30m, €30m, €20m, JPY8bn and JPY4.5bn. The Company also has a

JPY8.0bn unsecured multi-currency revolving credit facility. There were no

drawings on the revolving credit facility as at 30 September 2023.

£’000

Current year revenue available for dividends 20,041

Interim dividend of 1.2p per Ordinary Share paid on 14 July 2023 5,701

Recommended final dividend payable on 4 January 2024 to shareholders on the register as at 1 December 2023 (ex dividend 30 November 2023):

– Final dividend of 2.30p per Ordinary Share 10,514*

– Special dividend of 0.20p per Ordinary Share 914*

17,129

* Based on shares in circulation on 9 November 2023.

Results and Dividends

The Company’s profit for the year was £134,137,000, which included a profit of £18,578,000 attributable to revenue (2022: loss of £(111,026,000) which

included a profit of £16,302,000 attributable to revenue). The profit for the year attributable to revenue has been applied as follows:

Governance / Report of the Directors

AVI Global Trust plc / Annual Report 2023

The Company’s capital structure comprises

Ordinary Shares and Loan Notes.

Ordinary Shares

At 30 September 2023, there were 507,774,638 Ordinary Shares of 2p

each in issue (2022: 537,052,524 Ordinary Shares) of which 45,600,956

(2022: 45,600,956) were held in treasury and therefore the total voting

rights attaching to Ordinary Shares in issue were 462,173,682.

Income entitlement

The profits of the Company (including accumulated revenue reserves)

available for distribution and resolved to be distributed shall be distributed

by way of interim, final and (where applicable) special dividends among

the holders of Ordinary Shares, subject to the payment of interest to the

holders of Loan Notes.

Capital entitlement

After meeting the liabilities of the Company and the amounts due to Loan

Note holders on a winding-up, the surplus assets shall be paid to the

holders of Ordinary Shares and distributed among such holders rateably

according to the amounts paid up or credited as paid up on their shares.

Voting entitlement

Each Ordinary shareholder is entitled to one vote on a show of hands

and, on a poll, to one vote for every Ordinary Share held.

The Notice of Meeting and Form of Proxy stipulate the deadlines for the

valid exercise of voting rights and, other than with regard to Directors not

being permitted to vote their shares on matters in which they have an

interest, there are no restrictions on the voting rights of Ordinary Shares.

Transfers

There are no restrictions on the transfer of the Company’s shares

other than a) transfers by Directors and Persons Discharging Managerial

Responsibilities and their connected persons during closed periods

under the Market Abuse Regulation or which may constitute insider

dealing, b) transfers to more than four joint transferees and c) transfers

of shares which are not fully paid up or on which the Company has a lien

provided that such would not prohibit dealings taking place on an open

and proper basis.

The Company is not aware of any agreements between shareholders

or any agreements or arrangements with shareholders which would

change in the event of a change of control of the Company.

Loan Notes

At 30 September 2023, there were in issue the following unsecured private

placement notes (the Loan Notes).

Income Estimated

Description Issued entitlement Maturity Fair Value

£30m 4.184% Series A Sterling

Unsecured Loan Notes 2036 15 Jan 2016 4.184% 15 Jan 2036 £25.1m

€30m 3.249% Series B Euro

Unsecured Loan Notes 2036 15 Jan 2016 3.249% 15 Jan 2036 £22.2m

€20m 2.93% Euro Senior

Unsecured Loan Notes 2037 1 Nov 2017 2.93% 1 Nov 2037 £13.9m

JPY8bn 1.38% Senior

Unsecured Loan Notes 2032 6 Jul 2022 1.38% 6 Jul 2032 £40.6m

JPY4.5bn 1.44% Senior

Unsecured Loan Notes 2033 25 Jul 2023 1.44% 25 Jul 2033 £22.8m

The Loan Notes are unsecured. If the Company is liquidated, the Loan

Notes are redeemable by the Company at a price which is in each case the

higher of par and the terms set out in the table below:

Description Redemption terms

£30m 4.184% Series A

Sterling Unsecured Loan Notes

2036

The price at which the Gross Redemption

Yield on the date of redemption is

equivalent to the yield on a reference

UK government bond.

€30m 3.249% Series B Euro

Unsecured Loan Notes 2036

and €20m 2.93% Euro Senior

Unsecured Loan Notes 2037

The price at which the Gross Redemption

Yield on the date of redemption is

equivalent to the yield on a reference

German government bond.

JPY8bn 1.38% Senior

Unsecured Loan Notes 2032

50% of the notional value of the issued

loans could be redeemed at the price

at which the Gross Redemption Yield

on the date of redemption is equivalent

to the yield on a reference Japanese

government bond, while for the 50% of

swapped notes the redemption price is

equivalent to the yield on a reference US

Treasury plus an Applicable Percentage

of 0.5%.

JPY4.5bn 1.44% Senior

Unsecured Loan Notes 2033

The price at which the Gross Redemption

Yield on the date of redemption is

equivalent to the yield on a reference

Japanese government Bond.

Had the Company been liquidated on 30 September 2023, the redemption

premium would have amounted to £14.5m over and above the fair values.

Voting entitlement

The holders of the Loan Notes have no right to attend or to vote at general

meetings of the Company.

Debt Covenants

Under the terms of the Loan Notes, covenants require that the net

assets of the Company shall not be less than £300,000,000 and total

indebtedness shall not exceed 30% of net assets. The Company also has

a short-term JPY8bn multi-currency revolving credit facility, the terms of

which include covenants requiring that the net assets shall not be less than

£300m and the adjusted net asset coverage to borrowings shall not be

less than 4:1.

Significant agreements

Other than the Loan Notes and the revolving credit facility set out above,

the Company is not aware of any significant agreements to which the

company is a party that take effect, alter or terminate upon a change of

control of the company following a takeover bid.

AVI Global Trust plc / Annual Report 2023

Directors and Board Structure

The Directors of the Company are listed on pages 52 and 53. All served

throughout the period under review, with the exception of June Jessop,

who was appointed as a non-executive Director on 1 January 2023. Susan

Noble retired from the Board on 20 December 2022.

In accordance with the AIC’s Code of Corporate Governance, as this is

the first AGM since her appointment, June Jessop will stand for election

and the remaining Directors will retire at the forthcoming AGM and offer

themselves for re-election. During the year under review, the annual review

of the Board was facilitated by an external agency, Lintstock Limited. In

reviewing the contribution of each Director, the Board considered the

experience of each Director, as set out under the individual Directors’

biographies on pages 52 and 53 and the ways in which they contributed

to the Board during the year. Having considered the findings of the

annual review, the Board considers that all Directors contribute effectively,

possess the necessary skills and experience and continue to demonstrate

commitment to their roles as non-executive Directors of the Company.

It was therefore agreed that all Directors should stand for election or

re-election as appropriate, and the (re-)election of each of the Directors

is recommended by the Board.

The Company has provided indemnities to the Directors in respect of

costs or other liabilities which they may incur in connection with any claims

relating to their performance or the performance of the Company whilst

they are Directors.

New appointees to the Board are provided with a full induction

programme. The programme covers the Company’s investment strategy,

policies and practices. The Directors are also given key information on the

Company’s regulatory and statutory requirements as they arise, including

information on the role of the Board, matters reserved for its decision, the

terms of reference for the Board Committees, the Company’s corporate

governance practices and procedures and the latest financial information.

It is the Chairman’s responsibility to ensure that the Directors have

sufficient knowledge to fulfil their roles and Directors are encouraged to

participate in training courses where appropriate. The Directors have

access to the advice and services of the Company Secretary through its

appointed representative which is responsible to the Board for ensuring

that Board procedures are followed and that applicable rules and

regulations are complied with. The Company Secretary is also responsible

for ensuring good information flows between all parties.

The Directors, in the furtherance of their duties, may take independent

professional advice at the Company’s expense.

The beneficial interests of the current Directors and their connected

persons in the securities of the Company as at 30 September 2023

are set out in the Directors’ Report on Remuneration Implementation

on page 93.

The general powers of the Directors are contained within the relevant

UK legislation and the Company’s Articles of Association. The Directors

are entitled to exercise all powers of the Company, subject to any

limitations imposed by the Articles of Association or applicable legislation.

The Articles of Association may only be amended by way of a special

resolution of shareholders.

Board Independence

The Chairman and all Directors were considered independent of the

Investment Manager at the time of their appointment and, in line with the

guidelines of the AIC Code of Corporate Governance, all continue to be

considered independent.

Policy on Tenure of Directors

The Board has a policy requiring that Directors should stand down after

a maximum of nine years, but will consider the term of the Chairman

separately, taking account of the need for an orderly transition.

It considers that a long association with the Company and experience

of a number of investment cycles can be valuable to its deliberations and

does not compromise a Director’s independence. However, it does also

recognise the need for progressive refreshing of the Board.

Role and Responsibilities of the Chairman

The Chairman leads the Board and is responsible for its overall

effectiveness in directing the affairs of the Company. Key aspects

of the Chairman’s role and responsibilities are to:

• Act with objective judgement

• Promote a culture of openness and debate

• Facilitate constructive Board relations and the effective contribution

of all Directors

• Working with the Company Secretary, ensure that all Directors receive

accurate and timely information so that they can discharge their duties

• Seek regular engagement with the Company’s shareholders

• Act on the results of the annual evaluation of the performance of the

Board, its Committees and individual Directors.

Susan Noble, who was Chairman until 20 December 2022, and Graham

Kitchen, who replaced her following the 2022 AGM, were independent on

appointment and remain independent as set out in the AIC Code.

Role and Responsibilities of the Senior Independent Director

The key elements of the Senior Independent Director’s role are to:

• Act as a sounding board for the Chairman

• Lead the annual evaluation of the Chairman as part of the annual

evaluation process

• In the event of any major difference of opinion on the direction of

the Company, act as an intermediary between the Chairman, other

Directors and the Investment Manager

• Provide a conduit for views of shareholders in the event that the usual

channels are not available or not suitable in the circumstances.

Board Committees

The Board has agreed a schedule of matters specifically reserved for

decision by the full Board, subject to which the Board has delegated

specific duties to Committees of the Board which operate within written

terms of reference. The Board considers that, as it is comprised of

independent non-executive Directors, it is not necessary to establish a

separate Remuneration Committee. Each Director abstains from voting

on their individual remuneration.

Link Company Matters Limited acts as Company Secretary to each

Committee. No persons other than the Committee members are entitled

to attend Committee meetings unless formally invited by the Committee.

Copies of the terms of reference for each Board Committee are available

from the Company Secretary and can be found on the Company’s website.

As the Company has only five Directors, all of whom are non-executive,

it is the Board’s policy that all Directors will sit on all Board Committees.

Audit Committee

The Audit Committee met four times in the year under review and held

an additional meeting to receive a presentation from BDO LLP, as

discussed in the Audit Committee report on page 88. The Committee

comprises the whole Board, being independent Directors. All members

of the Committee have recent and relevant financial experience and the

Committee as a whole has competence relevant to the sector in which the

Company operates. The Audit Committee has set out a formal Report on

pages 87 to 89 of the Annual Report.

The Board notes that the AIC Code permits the Chairman of the

Board to be a member of the Audit Committee of an investment trust.

In light of the fact that the Board consists of only five members and

recognising the Chairman’s long experience in investment management,

the Audit Committee resolved to continue the Chairman’s appointment

to the Committee.

Governance / Report of the Directors continued

AVI Global Trust plc / Annual Report 2023

Management Engagement Committee

The Management Engagement Committee meets at least once each

year and comprises the whole Board, being independent Directors.

The Committee was previously chaired by the Chairman of the Board,

but during the year, Mr Galloway was appointed as Chairman of the

Management Engagement Committee. The main functions of the

Committee are to define the terms of the Investment Management

Agreement (IMA), ensuring that the Investment Manager follows good

industry practice, is competitive and continues to act in the best interests

of shareholders. The Committee monitors the Investment Manager’s

compliance with the terms of the IMA and the Investment Manager’s

performance.

The Committee also reviews the services and performance of the Company’s

other third-party service providers. The Committee has a procedure for

formal annual reviews of all service providers and also occasionally carries

out further, ad hoc, reviews as it deems to be necessary.

Nomination Committee

The Nomination Committee comprises the whole Board. The Committee

was previously chaired by the Chairman of the Board, but during the year

Mr Thomson was appointed as Chairman of the Nomination Committee.

The Nomination Committee convenes to undertake the annual appraisal

of the performance of the Board, its Committees and the Directors and,

if agreed, to propose the re-election of the Directors, each of whom will

retire at the AGM. The Nomination Committee maintains a matrix which

summarises the key skills and experience of each Director and which is

reviewed at least once per year. This skills matrix is a key element of the

process of ensuring that the Board has an appropriate mix of skills and

experience and will be used when considering longer-term succession

plans, as well as identifying any areas which may require strengthening.

The matrix would also be taken into account when compiling the

specification for candidates for new Board appointments.

The Nomination Committee also meets to consider succession plans and

the appointment of new Directors to the Board. Candidates for nomination

may be sourced from outside the Company using third-party search and

selection services, as well as potential candidates known to Directors

through their extensive knowledge of the industry.

As discussed in the 2022 Annual Report, the Nomination Committee

managed a search and selection process for a new non-executive Director,

which was concluded during the year under review. Sapphire Partners

had been appointed to assist with the search and they produced a long

list of candidates for the role of non-executive Director and a number

were selected for interview by the Nomination Committee. Following this

process, June Jessop was appointed as a non-executive Director. The

Board confirms that it considers June Jessop able to devote sufficient time

to the Company’s affairs. There is no connection between the Directors or

the Company and Sapphire Partners.

Disclosure Committee

A Disclosure Committee, comprising all Directors, meets when required

to ensure that inside information is identified and disclosed, if necessary,

in a timely fashion in accordance with relevant law and regulation.

Due to the necessity for meetings to be called on short notice, the

quorum for the Committee is two members, one of whom shall be

either the Chairman, the Chairman of the Audit Committee or the

Senior Independent Director.

Diversity

The Company is committed to ensuring that any vacancies arising are filled

by the most qualified candidates. The Board has adopted a diversity policy,

which acknowledges the benefits of diversity, and remains committed

to ensuring that the Company’s Directors bring a wide range of skills,

knowledge, experience, backgrounds and perspectives to the Board.

Diversity continued

Whilst the Board does not feel that it would be appropriate to set targets

as all appointments are made on merit, the following objectives for the

appointment of Directors have been established: (i) all Board appointments

will be made on merit, in the context of the skills, knowledge and

experience that are needed for the Board to be effective; and (ii) long lists

of potential non-executive Directors should include diverse candidates of

appropriate merit.

The Board notes the new FCA rules on diversity and inclusion on company

boards, namely that from accounting periods commencing on or after

1 April 2022 included in Listing Rule 9.8.6 (9-11):

• At least 40% of individuals on the Board to be women;

• 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.

In accordance with Listing Rule 9 Annex 2.1, the below tables, in

prescribed format, show the gender and ethnic background of the

Directors at the year-end.

Gender identity or sex

Number of

Number of Percentage senior

Board on the positions on

members Board the Board

Men 3 60% 2

Women 2 40% –

Not specified/prefer not to say – – –

Ethnic background

Number of

Number of Percentage senior

Board on the positions on

members Board the Board

White British or other White

(including minority white groups) 5 100% 2

Mixed/Multiple Ethnic Groups – – –

Asian/Asian British – – –

Black/African/Caribbean/Black British – – –

Other ethnic group, including Arab – – –

Not specified/prefer not to say – – –

The data in the above tables was collected through self-reporting by the

Directors, who were asked to indicate which of the categories specified in

the prescribed tables were most applicable to them.

As an externally managed company, the Company does not have any

employees. The Board acknowledges the importance of diversity for the

effective functioning of the Board which helps create an environment

for success and effective decision making. The Board is aware of the

recommendations of the Hampton-Alexander Review on gender diversity

and the Parker Review on ethnic diversity and inclusion on company

boards. The Company is pleased to have met the target for at least 40%

of individuals on the Board to be women but does not 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 targets have been and will continue to be taken into consideration

in respect of the recruitment of all new Directors of the Company. The

Board’s decision to appoint June Jessop as a Director during the year

under review was due to the Directors believing that she was the strongest

candidate available to fill the vacancy.

AVI Global Trust plc / Annual Report 2023

As the Board is made up wholly of non-executive Directors it only has two

roles which are classed in the UK Listing Rules as “senior”, namely the

Chairman and Senior Independent Director. At present neither of these

roles is filled by a female Director. The Board is focused on addressing all

of the relevant targets and, through its Nomination Committee, will keep

these matters under regular review and will take account of the targets

when appointing further Board members in the future.

Management Arrangements

AVI, the Investment Manager, is the Company’s appointed AIFM, and

is engaged under the terms of an IMA dated 17 July 2014. The IMA is

terminable by six months’ notice from either party, other than for “cause”.

During the year under review, the Investment Manager was entitled to

an annual management fee of 0.70% of the net assets of the Company,

up to £1bn and 0.60% for that proportion of assets above £1bn.

J.P. Morgan Europe Limited was appointed as Depositary under an

agreement with the Company and AVI dated 2 July 2014, and is paid

a fee on a sliding scale between 1.00 basis points and 1.95 basis points

based on the assets of the Company. The Depositary Agreement is

terminable on 90 calendar days’ notice from either party.

JPMorgan Chase Bank, National Association, London Branch, has been

appointed as the Company’s Custodian under an agreement dated

2 July 2014. The agreement will continue for so long as the Depositary

Agreement is in effect and will terminate automatically upon termination

of the Depositary Agreement, unless the parties agree otherwise.

Link Company Matters Limited was appointed as corporate Company

Secretary on 1 April 2014. The current annual fee is £87,637, which is

subject to an annual RPI increase. The Agreement may be terminated

by either party on six months’ written notice.

During the year under review, the Board resolved that certain fund

administration services, which previously had been sub-contracted

by AVI, should instead be directly contracted by the Company. A contract

was entered into with Link Asset Services with effect from 1 April 2023 with

an annual fee of £138,508. This fee is subject to an annual increase linked

to the UK RPI.

Continuing Appointment of the Investment Manager

The Board keeps the performance of the Investment Manager under

continual review, and the Management Engagement Committee conducts

an annual appraisal of the Investment Manager’s performance, and makes

a recommendation to the Board about the continuing appointment of the

Investment Manager. It is the opinion of the Directors that the continuing

appointment of the Investment Manager is in the interests of shareholders

as a whole. The reasons for this view are that the Investment Manager has

executed the investment strategy according to the Board’s expectations

and has produced positive returns relative to the broader market and the

comparator benchmark.

Corporate Governance

The Listing Rules and the Disclosure Guidance and Transparency Rules

(Disclosure Rules) of the UK Financial Conduct Authority require listed

companies to disclose how they have applied the principles and complied

with the provisions of the corporate governance code to which the issuer is

subject. The provisions of the UK Corporate Governance Code (UK Code)

issued by the Financial Reporting Council (FRC) in July 2018 are applicable

for the year under review. The related Code of Corporate Governance (AIC

Code) issued by the AIC in February 2019 addresses all of the principles

set out in the UK Code, as well as setting out additional principles and

recommendations on issues that are specific to investment trusts. The FRC

has confirmed that AIC member companies which report against the AIC

Code and which follow the AIC Guide will meet the obligations in relation

to the UK Code and associated disclosure requirements of the Disclosure

Rules. The Board considers that the principles and recommendations of

the AIC Code provide the most appropriate framework for the Company’s

governance.

The AIC Code can be viewed at www.theaic.co.uk

The UK Code can be viewed at www.frc.org.uk

The Board considers that reporting against the principles and

recommendations of the AIC Code (which incorporates the UK Code)

provides shareholders with full details of the Company’s Corporate

Governance compliance.

Throughout the year ended 30 September 2023, the Company has

complied with the provisions of the AIC Code and the relevant provisions

of the UK Code, except as set out in this paragraph. As the entire Board

is non-executive and consists of only five members, the Board does

not have a separate Remuneration Committee. The UK Code includes

provisions relating to the role of the Chief Executive, executive Directors’

remuneration and the need for an internal audit function. For the reasons

set out in the AIC Code, and as explained in the UK Code, the Board

considers that these provisions are not relevant to the position of the

Company, being an externally managed investment company. In particular,

all of the Company’s day-to-day management and administrative functions

are outsourced to third parties. As a result, the Company has no executive

directors, employees or internal operations and as such the Directors do

not determine the need for an internal audit function to be practicable or

necessary. The Company has therefore nothing to report in respect of

these provisions.

The table below sets out information required under Provision 1 of the

UK Code and how it is disclosed in this Annual Report:

Governance / Report of the Directors continued

How opportunities and risks to the future success of

the business have been considered and addressed

An overview of the Company’s performance is set out in the Chairman’s Statement, and a

more detailed review is set out in the Investment Manager’s Review. A detailed review of risk

management is set out on pages 12 to 15.

The sustainability of the company’s business model The sustainability of the business model is set out in the Viability Statement on page 63.

How its governance contributes to the delivery

of its strategy

The approach to governance is set out in this section of the Annual Report, in particular the

section 172 statement on pages 16 to 18 and the description of the Board structure on page

56.

AVI Global Trust plc / Annual Report 2023

Set out below are full details of how the Company has applied the Principles of the AIC Code:

AIC Code Principle Compliance Statement

A A successful company is led by an effective

board, whose role is to promote the long-

term sustainable success of the company,

generating value for shareholders and

contributing to wider society.

In managing the Company, the aim of the Board and of the Investment Manager is always to

ensure the long-term sustainable success of the Company and, therefore, the likely long-term

consequences of any decision are a key consideration.

Both the Board and AVI recognise that social, human rights, community, governance and

environmental issues have an effect on its investee companies. The Board supports AVI in its

belief that 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 equity securities in line with its investment strategy. A key component of AVI’s

investment strategy is to understand and engage with the management of public companies.

More information on the Company’s long-term performance record can be found on page 5

and more details of AVI’s ESG Policy are on pages 26 to 29 of this Report.

B The board should establish the company’s

purpose, values and strategy, and satisfy

itself that these and its culture are aligned.

All directors must act with integrity, lead by

example and promote the desired culture.

The purpose of the Company is to achieve capital growth through a focused portfolio of mainly

listed investments, particularly in companies whose shares stand at a discount to estimated

underlying net asset value.

More information on our culture and how it is aligned with the Company’s purpose and strategy

can be found under Culture and Values on page 16 of this Report.

C The board should ensure that the necessary

resources are in place for the company

to meet its objectives and measure

performance against them. The board should

also establish a framework of prudent and

effective controls, which enable risk to be

assessed and managed.

The Directors regularly consider the Company’s financial position in the context of its business

model, the balance sheet, cash flow projections, availability of funding and the Company’s

contractual commitments. The Company’s objective is to achieve capital growth through a

focused portfolio of mainly listed investments, particularly in companies whose shares stand

at a discount to estimated underlying net asset value, therefore one of the measures which the

Board considers is NAV total returns, details of which can be found on page 12.

As explained earlier, the Company is subject to various risks in pursuing its objectives and in

order to effectively assess and manage risk, appropriate controls and policies are in place and

are regularly reviewed and assessed by the Audit Committee. These are detailed in the Strategic

Report on pages 12 to 15, in the Audit Committee Report on page 88 and in note 15 to the

financial statements.

D In order for the company to meet its

responsibilities to shareholders and

stakeholders, the board should ensure

effective engagement with, and encourage

participation from, these parties.

On pages 17 and 18 we describe our key stakeholders, the reason they are important and how

we seek to gain an understanding of their interests and also how the Board engages with them.

F The chair leads the board and is responsible

for its overall effectiveness in directing the

company. They should demonstrate objective

judgement throughout their tenure and

promote a culture of openness and debate.

In addition, the chair facilitates constructive

board relations and the effective contribution

of all non-executive directors, and ensures

that directors receive accurate, timely and

clear information.

The role and responsibilities of the Chairman are described on page 56. The Company recognises

that the Chairman leads the Board and is responsible for its overall effectiveness in directing the

affairs of the Company.

The annual evaluation of the Board’s effectiveness always considers the performance of the

Chairman, and whether he has performed his role effectively. The Directors, led by the SID,

have concluded that the Chairman has fulfilled his role and performed well to support the effective

functioning of the Board. Further information on our culture can be found on page 16.

G The board should consist of an appropriate

combination of directors (and, in particular,

independent non-executive directors)

such that no one individual or small group

of individuals dominates the board’s

decision-making.

During the year under review, the Board consisted only of non-executive Directors and all of the

Directors are deemed to be independent of the Investment Manager. In the Board’s opinion, each

Director continues to provide constructive challenge and robust scrutiny of matters that come

before the Board.

The Board also considers the composition of the Board, as well as the longer-term succession

plans. As a Board, we aim to be as well-equipped as a Board of any large investment trust to

effectively give direction to, and exercise scrutiny of, the Company’s activities.

AVI Global Trust plc / Annual Report 2023

AIC Code Principle Compliance Statement

H Non-executive directors should have sufficient

time to meet their board responsibilities.

They should provide constructive challenge,

strategic guidance, offer specialist advice and

hold third-party service providers to account.

The Board considers the required time commitment annually and, during the year under review,

the Board concluded that all Directors continued to devote sufficient time to the business of the

Company. All new Board appointments and/or additional commitments are reviewed and agreed

by the Board and on an annual basis. The Board assesses whether individual Directors commit

sufficient and productive time to the company. Through their contributions in meetings, as well

as outside of the usual meeting cycle, the Directors share their experience and guidance with, as

well as constructively challenge, the Investment Manager.

The Board, supported by the Management Engagement Committee, regularly assesses the

performance of all third-party service providers. More details on the work of the Management

Engagement Committee can be found on page 57.

I The board, supported by the company

secretary, should ensure that it has the

policies, processes, information, time and

resources it needs in order to function

effectively and efficiently.

The Board’s responsibilities are set out in the schedule of Matters Reserved for the full Board

and certain responsibilities are delegated to its Committees, so that it can operate effectively and

efficiently. Supported by its Committees, the Board has overall responsibility for purpose, strategy,

business model, performance, asset allocation, capital structure, approval of key contracts,

the framework for risk management and internal controls and governance matters, as well as

engagement with shareholders and other key stakeholders.

A number of Board policies are reviewed on a regular basis. Directors are also provided with

any relevant information and have access to the Company Secretary and independent advisers,

if required.

J Appointments to the board should be

subject to a formal, rigorous and transparent

procedure, and an effective succession plan

should be maintained. Both appointments

and succession plans should be based on

merit and objective criteria and, within this

context, should promote diversity of gender,

social and ethnic backgrounds, cognitive

and personal strengths.

The Company is committed to ensuring that any vacancies arising are filled by the most qualified

candidates. The Board has adopted a Diversity Policy, which acknowledges the benefits of diversity,

and remains committed to ensuring that the Company’s Directors bring a wide range of skills,

knowledge, experience, backgrounds and perspectives to the Board. The Company’s policy on the

tenure of Directors also helps to guide long-term succession plans, and recognises the need for

and value of progressive refreshing of the Board.

Both policies are described in more detail on pages 56 and 57.

K The board and its committees should have

a combination of skills, experience and

knowledge. Consideration should be given to

the length of service of the board as a whole

and membership regularly refreshed.

The Nomination Committee, which comprises the whole Board, is responsible for identifying

and recommending to the Board the appointment of new Directors. The Nomination Committee

maintains a matrix which summarises the key skills and experience of each Director and the

matrix is reviewed at least once per year. This skills matrix is a key element of the process of

ensuring that the Board has an appropriate mix of skills and experience and will be used when

considering longer-term succession plans.

L Annual evaluation of the board should

consider its composition, diversity and how

effectively members work together to achieve

objectives. Individual evaluation should

demonstrate whether each director continues

to contribute effectively.

An annual evaluation of the performance of the Board, its Committees and individual Directors

takes place every year, and an independent review is undertaken every three years. The Board

engaged Lintstock Ltd to carry out this year’s externally facilitated evaluation. Please refer to page

56 for discussion of the outcome of this year’s performance evaluation.

M The board should establish formal and

transparent policies and procedures to

ensure the independence and effectiveness

of external audit functions and satisfy itself

on the integrity of financial and narrative

statements.

The Audit Committee supports the Board in fulfilling its oversight responsibilities by reviewing

the performance of the external Auditor, audit quality, as well as the Auditor’s objectivity and

independence. The Committee also reviews the integrity and content of the financial statements,

including the ongoing viability of the Company. More details can be found in the Committee’s

report on pages 87 to 89.

N The board should present a fair, balanced and

understandable assessment of the company’s

position and prospects.

The Audit Committee supports the Board in assessing that the Company’s Annual Report presents

a fair, balanced and understandable assessment of the Company’s position and prospects.

Please refer to the Report of the Audit Committee on pages 87 to 89 for further information.

Governance / Report of the Directors continued

AVI Global Trust plc / Annual Report 2023

AIC Code Principle Compliance Statement

O The board should establish procedures to

manage risk, oversee the internal control

framework, and determine the nature and

extent of the principal risks the company is

willing to take in order to achieve its long-term

strategic objectives.

The work of the Audit Committee, that supports the Board through its independent oversight of

the financial reporting process, including the financial statements, the system of internal control

and management of risk, the appointment and ongoing review of the quality of the work and

independence of the Company’s external Auditor, as well as the procedures for monitoring

compliance, is described in pages 87 to 89.

P Remuneration policies and practices should

be designed to support strategy and promote

long-term sustainable success.

The Directors are all non-executive and independent of the Investment Manager. They receive

fees and no component of any Director’s remuneration is subject to performance factors.

Whilst there is no requirement under the Company’s Articles of Association or letters of

appointment for Directors to hold shares in the Company, all of the Directors do have shares

in the Company and the details of their shareholdings are set out on page 93.

Q A formal and transparent procedure

for developing a policy for remuneration

should be established. No director

should be involved in deciding their

own remuneration outcome.

As the Company has no employees and the Board is comprised wholly of non-executive

Directors, the Board has not established a separate Remuneration Committee. Directors’

remuneration is determined by the Board as a whole, at its discretion within an aggregate ceiling

as set out in the Company’s Articles of Association. Each Director abstains from voting on their

own individual remuneration.

The details of the Remuneration Policy and Directors’ fees can be found on pages 90 to 93.

The terms and conditions of the Directors’ appointments are set out in Letters of Appointment,

which are available for inspection on request at the registered office of the Company.

R Directors should exercise independent

judgement and discretion when authorising

remuneration outcomes, taking account of

company and individual performance, and

wider circumstances.

The process of reviewing the Directors’ fees is described on page 92, although there are no

performance related elements of the remuneration, there is therefore very little scope for the

exercise of discretion or judgement.

UK Corporate Governance Code Principle E relates to the treatment of employees and so is generally not applicable to companies under the AIC Code

if, as in the case of the Company, there are no employees.

Interests in Share Capital

Information on the structure, rights and restrictions relating to share capital is given on page 55.

At 30 September 2023 and 7 November 2023, the following holdings representing more than 3% of the Company’s voting rights had been reported

to the Company:

Number held at Percentage held at Percentage held at

30 September 2023 30 September 2023 7 November 2023

Interactive Investor 46,504,719 10.06% 10.17%

Hargreaves Lansdown Asset Management Limited 42,053,939 9.10% 9.20%

1607 Capital Partners, LLC 27,212,520 5.86% 0.00%

Charles Stanley & Co Limited 24,833,470 5.05% 5.43%

Halifax Share Dealing Limited 23,125,165 5.00% 5.06%

Lazard Asset Management LLC 22,884,714 4.89% 5.01%

AJ Bell 18,226,193 3.94% 3.99%

Evelyn Partners* 18,909,950 3.85% 4.14%

Since the year-end, on 11 October 2023, the Company was notified by 1607 Capital Partners, LCC, that its holding had reduced to 0.00%. No other

changes have been notified.

* Previously Smith & Williamson Investment Management Limited.

AVI Global Trust plc / Annual Report 2023

Financial Risk Management

The principal risks and uncertainties facing the Company are set out on

pages 12 to 15. The principal financial risks and the Company’s policies for

managing these risks are set out in note 15 to the financial statements.

Greenhouse Gas Emissions and TCFD/SECR reporting

The Company’s environmental statements are set out in the Strategic

Report on page 19. The Company has no greenhouse gas emissions

to report from the operations of the Company, nor does it have

responsibility for any other emissions producing sources reportable

under the Companies Act 2006 (Strategic Report and Directors’ Report)

Regulations 2013.

As an investment trust without employees, the Company is also not

required to report against the TCFD nor the SECR framework. However,

understanding and managing climate-related risks and opportunities based

on the TCFD’s recommendations is a fundamental part of AVI’s investment

approach, as discussed on pages 26 to 29.

Anti-Bribery and Corruption Policy

The Company has adopted an Anti-Bribery and Corruption Policy

and has reviewed the statements regarding compliance with the Bribery

Act 2010 by the Company’s Investment Manager and key service

providers. These statements are reviewed regularly by the Management

Engagement Committee.

Disclosure of Information to the Auditor

The Directors who held office at the date of approval of the Report of the

Directors confirm that, so far as they are aware, there is no relevant audit

information of which the Company’s Auditor is unaware; and each Director

has taken all of the steps that he/she ought to have taken as a Director to

make himself/herself aware of any relevant audit information and establish

that the Company’s Auditor is aware of that information.

Requirements of the Listing Rules

Listing Rule 9.8.4 requires the Company to include specified information in

a single identifiable section of the Annual Report or a cross reference table

indicating where the information is set out. The Directors confirm that no

disclosures are required in relation to Listing Rule 9.8.4.

Auditor

BDO LLP were appointed during 2023 and have indicated their willingness

to continue in office and Resolutions will be proposed at the forthcoming

AGM to re-appoint them as Auditor and to authorise the Directors to

determine their remuneration. Further information about the Company’s

external Auditor, including tenure, can be found in the Audit Committee’s

Report on page 89.

Annual General Meeting

The Notice of the AGM to be held on 20 December 2023 (the Notice) is set

out on pages 98 to 101. Further information on the resolutions comprising

special business being put to shareholders at the forthcoming AGM is set

out below:

Resolution 12 – Authority to allot shares

The Directors seek to renew the general and unconditional authority to

allot Ordinary Shares up to 152,370,114 Ordinary Shares of 2p each,

representing approximately one-third of the issued Ordinary Share capital

(excluding shares held in treasury). The Directors will only exercise this

authority if they consider it to be in the best interests of the Company and

would only issue shares at a price at or above the prevailing NAV per share

at the time of issue. This authority would expire 15 months after the date of

the passing of the resolution or, if earlier, at the next AGM of the Company.

No shares were issued in the year.

As at 9 November 2023, 45,600,956 shares were held in treasury,

representing 9.07% of the issued share capital.

Resolution 13 – Authority to issue shares outside of pre-emption rights

The Directors seek to renew the authority to allot, other than on a

pre-emptive basis, Ordinary Shares (including the grant of rights to

subscribe for, or to convert any securities into Ordinary Shares) for cash

up to a maximum of 22,855,517 Ordinary Shares, representing up to

approximately 5% of the Ordinary Shares (excluding shares held in

treasury) in issue as at 9 November 2023, and to transfer or sell Ordinary

Shares held in treasury.

The Directors will only exercise this authority if they consider it to be

advantageous to the Company and its shareholders. Shares will not

be issued or sold from treasury other than at a price equal to or above

the prevailing NAV per share.

No shares were issued in the year to 30 September 2023.

Resolution 14 – Share buyback facility

At the AGM held on 20 December 2022, the Directors were authorised

to make market purchases of up to 14.99% of the shares in circulation

at the date of that meeting. During the year, 29,277,886 shares have been

bought back under this authority (nominal value £585,558), representing

5.77% of the issued capital as at the year-end. These shares were bought

back in order to limit any significant widening of the discount. As at the

year-end, authority to buy back a further 47,793,755 Ordinary Shares

remained.

At the forthcoming AGM, the Directors will seek to renew the authority

for up to 14.99% of Ordinary Shares in issue (excluding shares held in

treasury), representing 68,520,840 Ordinary Shares, as at 9 November

2023, to be bought back. Purchases would be made in accordance

with the relevant provisions of the Companies Act and Listing Rules.

The authority will expire 15 months after the date of the passing of the

resolution or, if earlier, at the next AGM of the Company.

Details of shares bought back during the year under review can be found

in note 13 to the financial statements.

Ordinary Shares bought back may be held in treasury for cancellation

or sale at a future date rather than being cancelled upon purchase. The

Directors will not exercise the authority granted under this resolution unless

they consider it to be in the best interests of shareholders and shares

would only be bought back at a discount to the prevailing NAV per share.

Resolution 15 – Notice period for general meetings

This resolution will allow the Company to hold general meetings (other than

an AGM) on 14 clear days’ notice. The notice period for general meetings

of the Company is 21 clear days unless: (i) shareholders approve a shorter

notice period, which cannot however be less than 14 clear days; and

(ii) the Company offers the facility for all shareholders to vote by electronic

means. AGMs must always be held on at least 21 clear days’ notice. It is

intended that the flexibility offered by this resolution will only be used for

time sensitive, non-routine business and where merited in the interests of

shareholders as a whole. The approval will be effective until the Company’s

next AGM, when it is intended that a similar resolution will be proposed.

Recommendation

The Directors consider that all of the resolutions to be proposed at the

AGM are in the best interests of the Company and its members as a

whole. The Directors unanimously recommend that shareholders vote

in favour of all of the resolutions, as they intend to do in respect of their

own beneficial holdings.

Governance / Report of the Directors continued

AVI Global Trust plc / Annual Report 2023

Going Concern

The financial statements have been prepared on the going concern

basis and on the basis that approval as an investment trust company will

continue to be met.

The Directors have made an assessment of the Company’s ability to continue

as a going concern and are satisfied that the Company has adequate

resources to continue in operational existence for a period of at least

12 months from the date when these financial statements were approved.

In making the assessment, the Directors of the Company have considered

the likely impacts of international and economic uncertainties on the

Company, operations and the investment portfolio. These include, but

are not limited to, the impact of the war in Ukraine, the ongoing Israel/

Palestine conflict, political and economic instability in the UK, supply

shortages and inflationary pressures.

The Directors noted that the Company, with the current cash balance and

holding a portfolio of liquid listed investments, is able to meet the obligations

of the Company as they fall due. The surplus cash plus borrowing facilities

enables the Company to meet any funding requirements and finance future

additional investments. The Company is a closed-ended fund, where assets

are not required to be liquidated to meet day-to-day redemptions. In forming

our view that the company is a going concern we have taken into account

any loan facilities that expire during the period and the likelihood of our ability

or need to renew the facility.

The Directors have completed stress tests assessing the impact

of changes in market value and income with associated cash flows

and any potential impact on the debt covenants associated with the

Company’s long-term borrowing. In making this assessment, they have

considered severe but plausible downside scenarios. The conclusion

was that in a severe but plausible downside scenario the Company could

continue to meet its liabilities. Whilst the economic future is uncertain, and

the Directors believe that it is possible the Company could experience

reductions in income and/or market value, the opinion of the Directors

is that this should not be to a level which would threaten the Company’s

ability to continue as a going concern.

The Directors, the Investment Manager and other service providers have

put in place contingency plans to minimise disruption. Furthermore,

the Directors are not aware of any material uncertainties that may cast

significant doubt on the Company’s ability to continue as a going concern,

having taken into account the liquidity of the Company’s investment

portfolio and the Company’s financial position in respect of its cash flows,

borrowing facilities and investment commitments (of which there are none

of significance). Therefore, the financial statements have been prepared

on the going concern basis.

Viability

The Directors consider viability as part of their continuing programme

of monitoring risk. The Directors have made a robust assessment of

the principal and emerging risks. The Directors believe five years to

be a reasonable time horizon to consider the continuing viability of the

Company, reflecting a balance between a longer-term investment horizon

and the inherent shorter-term uncertainties within equity markets, although

they do have due regard to viability over the longer term and particularly

to key points outside this time frame, such as the due dates for the

repayment of long-term debt. The Company is an investment trust whose

portfolio is invested in readily realisable listed securities and with some

short-term cash deposits. The following facts support the Directors’ view

of the viability of the Company:

• In the year under review, expenses (including finance costs and

taxation) were adequately covered by investment income.

• The Company has a liquid investment portfolio.

• The Company has long-term debt of £30m and €30m which both fall

due for repayment in 2036, €20m which falls due for repayment in

2037, JPY8bn which falls due for repayment in 2032 and JPY4.5bn

which falls due in 2033. This debt was covered approximately 8 times

as at the end of September 2023 by the Company’s total assets. The

Directors are of the view that, subject to unforeseen circumstances,

the Company will have sufficient resources to meet the costs of annual

interest and eventual repayment of principal on this debt.

• The Company has an unsecured JPY8bn multi-currency revolving

credit facility expiring in August 2024. This was reduced from JPY12bn

in July 2023, following the arrangement of the JPY4.5bn 2033

unsecured note. This facility was undrawn at the end of September.

We will consider nearer the date of the facility expiring whether we

require the facility to be renewed.

The Company has a large margin of safety over the covenants on its

debt. The Company’s viability depends on the global economy and

markets continuing to function. The Directors also consider the possibility

of a wide-ranging collapse in corporate earnings and/or the market value

of listed securities. To the latter point, it should be borne in mind that

a significant proportion of the Company’s expenses are in ad valorem

investment management fees, which would reduce if the market value

of the Company’s assets were to fall.

In arriving at its conclusion, the Board has taken account of the potential

effects of the war in Ukraine, the ongoing Israel/Palestine conflict, political

and economic instability in the UK, supply shortages and inflationary

pressures on the value of the Company’s assets, income from those

assets and the ability of the Company’s key suppliers to maintain effective

and efficient operations. As set out in the Going Concern statement,

in assessing the potential effects of these international and economic

uncertainties, the Directors have completed stress tests which included

severe but plausible downside scenarios.

In order to maintain viability, the Company has a robust risk control framework

which, following guidelines from the FRC, has the objectives of reducing the

likelihood and impact of: poor judgement in decision-making; risk-taking that

exceeds the levels agreed by the Board; human error; or control processes

being deliberately circumvented.

Taking the above into account, and the potential impact of the principal

and emerging risks as set out on pages 12 to 15, the Directors have

a reasonable expectation that the Company will be able to continue in

operation and meet its liabilities as they fall due for a period of five years

from the date of approval of this Annual Report.

Approval

The Report of the Directors has been approved by the Board.

By Order of the Board

Link Company Matters Limited

Corporate Secretary

9 November 2023

AVI Global Trust plc / Annual Report 2023

Statement of Directors’ Responsibilities in Respect of the Annual

Report and the Financial Statements

The Directors are responsible for preparing the Annual Report and financial

statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for

each financial year. Under that law they are required to prepare the financial

statements in accordance with UK-adopted international accounting

standards and applicable law.

Under company law the Directors must not approve the financial

statements unless they are satisfied that they give a true and fair view of

the state of affairs of the Company and of its profit or loss for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable, relevant and reliable;

• state whether they have been prepared in accordance with UK-adopted

international accounting standards;

• assess the Company’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern; and

• use the going concern basis of accounting unless they either intend

to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

The Directors are responsible for keeping adequate accounting records

that are sufficient to show and explain the Company’s transactions and

disclose with reasonable accuracy at any time the financial position of

the Company and enable them to ensure that its financial statements

comply with the Companies Act 2006. They are responsible for such

internal control as they determine is necessary to enable the preparation

of financial statements that are free from material misstatement, whether

due to fraud or error, and have general responsibility for taking such steps

as are reasonably open to them to safeguard the assets of the Company

and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for

preparing a Strategic Report, Directors’ Report, Directors’ Remuneration

Report and Corporate Governance Statement that complies with that law

and those regulations.

In accordance with Disclosure Guidance and Transparency Rule 4.1.14R,

the financial statements will form part of the annual financial report

prepared using the single electronic reporting format under the TD ESEF

Regulation. The auditor’s report on these financial statements provides

no assurance over the ESEF format.

The financial statements of the Company are published on the Company’s

website at www.aviglobal.co.uk. The Directors are responsible for

the maintenance and integrity of the corporate and financial information

included on the Company’s website. Legislation in the UK governing the

preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.

Responsibility Statement of the Directors in Respect of the Annual

Financial Report

We confirm that to the best of our knowledge:

• the financial statements, prepared in accordance with the applicable set

of accounting standards, give a true and fair view of the assets, liabilities,

financial position and profit or loss of the Company; and

• the Strategic Report includes a fair review of the development and

performance of the business and the position of the Company, together

with a description of the principal risks and uncertainties that the

Company faces.

We consider the Annual Report and Accounts, taken as a whole, is fair,

balanced and understandable and provides the information necessary

for shareholders to assess the Company’s position and performance,

business model and strategy.

Graham Kitchen

Chairman

9 November 2023

Governance / Report of the Directors continued

AVI Global Trust plc / Annual Report 2023

2023 2023 2022 2022

Revenue Capital 2023 Revenue Capital 2022

return return Total return return Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Income

Investment income 2 24,450 – 24,450 23,113 – 23,113

Gains/(losses) on financial assets and

financial liabilities held at fair value 8 – 112,909 112,909 – (120,670) (120,670)

Exchange gains on currency balances – 3,138 3,138 – 1,839 1,839

24,450 116,047 140,497 23,113 (118,831) (95,718)

Expenses

Investment management fee 3 (2,067) (4,824) (6,891) (2,295) (5,355) (7,650)

Other expenses 3 (1,782) – (1,782) (2,594) (32) (2,626)

Profit/(loss) before finance costs and taxation 20,601 111,223 131,824 18,224 (124,218) (105,994)

Finance costs 4 (1,381) (3,262) (4,643) (963) (2,272) (3,235)

Exchange gains/(losses) on loan revaluation 4 – 6,135 6,135 – (838) (838)

Profit/(loss) before taxation 19,220 114,096 133,316 17,261 (127,328) (110,067)

Taxation 5 821 – 821 (959) – (959)

Profit/(loss) for the year 20,041 114,096 134,137 16,302 (127,328) (111,026)

Earnings per Ordinary Share 7 4.19p 23.83p 28.02p 3.24p (25.30p) (22.06p)

The total column of this statement is the Income Statement of the Company prepared in accordance with UK-adopted international accounting

standards in conformity with the requirements of UK IFRS. The supplementary revenue return and capital return columns are presented in accordance

with the Statement of Recommended Practice issued by the Association of Investment Companies (AIC SORP).

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

There is no other comprehensive income, and therefore the profit for the year after tax is also the total comprehensive income.

The accompanying notes are an integral part of these financial statements.

Financial Statements / Statement of Comprehensive Income

For the year ended 30 September 2023

AVI Global Trust plc / Annual Report 2023

Ordinary Capital

share redemption Share Capital Merger Revenue

capital reserve premium reserve* reserve reserve** Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000

For the year ended 30 September 2023

Balance as at 30 September 2022 10,741 8,194 28,078 852,839 41,406 28,250 969,508

Ordinary Shares bought back for cancellation (586) 586 – (56,668) – – (56,668)

Total comprehensive income for the year – – – 114,096 – 20,041 134,137

Ordinary dividends paid (see note 6) – – – – – (15,959) (15,959)

Balance as at 30 September 2023 10,155 8,780 28,078 910,267 41,406 32,332 1,031,018

For the year ended 30 September 2022

Balance as at 30 September 2021 11,600 7,335 28,078 1,016,881 41,406 27,922 1,133,222

Ordinary Shares bought back and held in treasury – – – (7,997) – – (7,997)

Ordinary Shares held in treasury cancelled (555) 555 – – – – –

Ordinary Shares bought back for cancellation (304) 304 – (28,681) – – (28,681)

Cost of Share Split – – – (36) – – (36)

Total comprehensive income for the year – – – (127,328) – 16,302 (111,026)

Ordinary dividends paid (see note 6) – – – – – (16,683) (16,683)

Prior years’ dividends cancelled (see note 6) – – – – – 709 709

Balance as at 30 September 2022 10,741 8,194 28,078 852,839 41,406 28,250 969,508

* Within the balance of the capital reserve, £765,247,000 relates to realised gains (2022: £757,415,000) which under the Articles of Association is distributable by way of

dividend. The remaining £145,020,000 relates to unrealised gains and losses on financial instruments (2022: £95,424,000) and is non-distributable.

** Revenue reserve is fully distributable by way of dividend.

The accompanying notes are an integral part of these financial statements.

Financial Statements / Statement of Changes in Equity

For the year ended 30 September 2023

AVI Global Trust plc / Annual Report 2023

2023 2022

Notes £’000 £’000

Non-current assets

Investments held at fair value through profit or loss 8 1,144,759 986,431

1,144,759 986,431

Current assets

Total return swap assets 8,9,16 2,174 –

Investments held at fair value through profit or loss 8 – 22,359

Trade receivables, prepayments and other debtors 9 45,674 25,217

Cash and cash equivalents 10 4,231 67,274

52,079 114,850

Total assets 1,196,838 1,101,281

Current liabilities

Total return swap liabilities 8,11,16 (20,873) –

Trade payables, accruals and short term borrowings 11 (3,398) (8,880)

(24,271) (8,880)

Total assets less current liabilities 1,172,567 1,092,401

Non-current liabilities

4.184% Series A Sterling Unsecured Loan 2036 12 (29,920) (29,913)

3.249% Series B Euro Unsecured Loan 2036 12 (25,960) (26,235)

2.93% Euro Unsecured Loan 2037 12 (17,250) (17,430)

1.38% JPY Senior Unsecured Loan Notes 2032 12 (43,761) (49,315)

1.44% JPY Senior Unsecured Loan Notes 2033 12 (24,658) –

(141,549) (122,893)

Net assets 1,031,018 969,508

Equity attributable to equity shareholders

Ordinary Share capital 13 10,155 10,741

Capital redemption reserve 8,780 8,194

Share premium 28,078 28,078

Capital reserve 910,267 852,839

Merger reserve 41,406 41,406

Revenue reserve 32,332 28,250

Total equity 1,031,018 969,508

Net asset value per Ordinary Share – basic and diluted 14 223.08p 197.27p

Number of shares in issue excluding Treasury 13 462,173,682 491,451,568

These financial statements were approved and authorised for issue by the Board of AVI Global Trust plc on 9 November 2023 and were signed

on its behalf by:

Graham Kitchen

Chairman

The accompanying notes are an integral part of these financial statements.

Registered in England & Wales No. 28203

Financial Statements / Balance Sheet

As at 30 September 2023

AVI Global Trust plc / Annual Report 2023

2023 2022

£’000 £’000

Reconciliation of profit/(loss) before taxation to net cash (outflow)/inflow from operating activities

Profit/(loss) before taxation 133,316 (110,067)

(Gains)/losses on investments held at fair value through profit or loss (112,909) 120,670

(Increase)/decrease in debtors and other receivables (39,985) 2,083

Increase/(decrease) in creditors and other payables 1,004 (127)

Taxation refunded/(paid) 671 (739)

Exchange gains on Loan Notes and revolving credit facility (10,921) (3,813)

Amortisation of loan issue expenses 39 24

Net cash (outflow)/inflow from operating activities (28,785) 8,031

Investing activities

Purchases of investments (516,837) (355,855)

Sales of investments 527,529 404,053

Cash inflow from investing activities 10,692 48,198

Financing activities

Dividends paid (15,959) (16,684)

Cancelled dividends – 709

Payments for Ordinary Shares bought back (58,722) (35,330)

Cost of Share Split – (36)

Drawdown of revolving credit facility 49,144 –

Repayment of revolving credit facility (44,359) (55,149)

Issue of loans net of costs 24,753 49,311

Cash (outflow) from financing activities (45,143) (57,179)

Decrease in cash and cash equivalents (63,236) (950)

Reconciliation of net cash flow movements in funds:

Cash and cash equivalents at beginning of year 67,274 68,418

Exchange rate movements 193 (194)

Decrease in cash and cash equivalents (63,236) (950)

Decrease in net cash (63,043) (1,144)

Cash and cash equivalents at end of year 4,231 67,274

Dividends received 23,498 20,837

Interest paid 2,075 2,109

The accompanying notes are an integral part of these financial statements.

Financial Statements / Statement of Cash Flows

For the year ended 30 September 2023

AVI Global Trust plc / Annual Report 2023

1. General information and accounting policies

AVI Global Trust plc is a company incorporated and registered in England and Wales. The principal activity of the Company is that of an investment trust

company within the meaning of Sections 1158/1159 of the Corporation Tax Act 2010 and its investment approach is detailed in the Strategic Report.

The Company’s financial statements have been prepared in accordance with UK-adopted international accounting standards and the AIC SORP.

Basis of preparation

The functional currency of the Company is Pounds Sterling because this is the currency of the primary economic environment in which the Company

operates. The financial statements are also presented in Pounds Sterling rounded to the nearest thousand, except where otherwise indicated.

Going concern

The financial statements have been prepared on the going concern basis and on the basis that approval as an investment trust company will continue

to be met.

The Directors have made an assessment of the Company’s ability to continue as a going concern and are satisfied that the Company has adequate

resources to continue in operational existence for a period of at least 12 months from the date when these financial statements were approved.

In making the assessment, the Directors of the Company have considered the likely impacts of international and economic uncertainties on the

Company, operations and the investment portfolio. The Directors also regularly assess the resilience of key third-party service providers, most notably

the Investment Manager and Fund Administrator. In making their assessment, the Directors have considered the likely impacts of international and

economic uncertainties on the Company, operations and the investment portfolio. These include, but are not limited to, geopolitical events, the war in

Ukraine, the ongoing Israel/Palestine conflict, political and economic instability in the UK, supply shortages and inflationary pressures.

The Directors noted that the Company, with the current cash balance and holding a portfolio of listed investments, is able to meet the obligations of the

Company as they fall due. The current cash balance enables the Company to meet any funding requirements and finance future additional investments.

The Company is a closed-ended fund, where assets are not required to be liquidated to meet day-to-day redemptions.

The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash flows. In making this

assessment, they have considered severe but plausible downside scenarios and simulated a 50% reduction in NAV during January 2024, the impact

on future cash flows as a result of this through to September 2028 and the expiry of the revolving credit facility 26 August 2024. The conclusion was

that in a severe but plausible downside scenario the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and the

Directors believe that it is possible the Company could experience further reductions in income and/or market value, and changes in expenses, the

opinion of the Directors is that this should not be to a level which would threaten the Company’s ability to continue as a going concern.

The Directors are not aware of any material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern,

having taken into account the liquidity of the Company’s investment portfolio and the Company’s financial position in respect of its cash flows,

borrowing facilities and investment commitments (of which there are none of significance). Therefore, the financial statements have been prepared on

the going concern basis.

Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business. The Company primarily

invests in companies listed in the UK and on other recognised international exchanges.

Accounting developments

In the year under review, the Company has applied amendments to IFRS issued by the IASB adopted in conformity with UK IFRS. These include annual

improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosure and presentation requirements. This

incorporated:

• Onerous contracts — Cost of Fulfilling a Contract (Amendments to IAS 37);

• Reference to the Conceptual Framework (Amendments to IFRS 3); and

• Annual improvements to IFRS Standards.

The adoption of the changes to accounting standards has had no material impact on these or prior years’ financial statements. There are amendments

to IAS/IFRS that will apply from 1 October 2023 as follows:

• Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2);

• Initial application of IFRS 17 and IFRS 9 – Comparative Information (Amendments to IFRS 17);

• Definition of Accounting Estimates (Amendments to IAS 8); and

• Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction – Amendments to IAS 12 Income Taxes.

Amendments to IAS/IFRS applicable from 1 October 2024 are:

• Classification of liabilities as current or non-current (Amendments to IAS 1); and

• Non-current liabilities with Covenants (Amendments to IAS 1).

The Directors do not anticipate that the adoption of these will have a material impact on the financial statements in current or future years.

Financial Statements / Notes to the Financial Statements

AVI Global Trust plc / Annual Report 2023

1. General information and accounting policies continued

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with UK-adopted international accounting standards requires management to make judgements,

estimates and assumptions that affect the application of policies and the reported amounts in the Balance Sheet, the Statement of Comprehensive

Income and the disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and associated assumptions are

based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the

basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ

from these estimates.

The areas requiring judgement and estimation in the preparation of the financial statements relate to the determination of the carrying value of unquoted

investments at fair value through profit or loss. The policies for these are set out in the notes to the financial statements below. The Company values

unquoted investments by following the International Private Equity Venture Capital Valuation (IPEV) guidelines. Further areas are recognising and

classifying unusual or special dividends received as either capital or revenue in nature; the valuation of derivatives; and the level of deferred tax.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which

the estimate is revised if the revision affects only that period, or in the period of the revision and future period if the revision affects both current and future

periods. There were no significant judgements or estimates which had a significant impact on these financial statements.

Investments

The Company’s business is investing in financial assets with a view to capital growth. The portfolio of financial assets is managed and its performance

evaluated on a fair value basis in accordance with the documented investment strategy and information is provided internally on that basis to the

Company’s Board of Directors.

The investments held by the Company are designated “at fair value through profit or loss”. All gains and losses are allocated to the capital return

within the Statement of Comprehensive Income as “Gains or losses on investments held at fair value through profit or loss”. Also included within this

heading are transaction costs in relation to the purchase or sale of investments. When a purchase or sale is made under a contract, the terms of which

require delivery within the time frame of the relevant market, the investments concerned are recognised or derecognised on the trade date.

All investments are designated upon initial recognition as held at fair value through profit or loss, and are measured at subsequent reporting dates at fair value,

which is either the bid price or closing price for Stock Exchange Electronic Trading Service – quotes and crosses (SETSqx). The Company derecognises a

financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all of the risks

and rewards of ownership of the asset to another entity. On derecognition of a financial asset, the difference between the asset’s carrying amount and the

sum of the consideration received and receivable and the cumulative gain or loss that had been accumulated is recognised in profit or loss.

Fair values for unquoted investments, or for investments for which the market is inactive, are established by using various valuation techniques in

accordance with the International Private Equity and Venture Capital (the IPEV) guidelines. These may include recent arm’s length market transactions, the

current fair value of another instrument that is substantially the same, net asset value, discounted cash flow analysis, option pricing models and reference

to similar quoted companies. Where there is a valuation technique commonly used by market participants to price the instrument and that technique has

been demonstrated to provide reliable estimates of prices obtained in actual market transactions, that technique is utilised. Unquoted investments are

constantly monitored with fair values approved by the Company’s Board of Directors.

All investments for which a fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy levels in note 15.

A transfer between levels may result from the date of an event or a change in circumstances.

Foreign currency

Transactions denominated in currencies other than Pounds Sterling are recorded at the rates of exchange prevailing on the date of the transaction.

Items which are denominated in foreign currencies are translated at the rates prevailing on the Balance Sheet date. Any gain or loss arising from

a change in exchange rate subsequent to the date of the transaction is included as an exchange gain or loss in the capital reserve or the revenue

account depending on whether the gain or loss is capital or revenue in nature.

Derivatives

Derivatives, including Total Return SWAPS, are classified as financial instruments at fair value and included in current assets/liabilities. Derivatives are

derecognised when the contract expires or on the trade on which the contract is sold. Changes in fair value of derivative instruments are recognised

as they arise in the capital column of the Statement of Comprehensive Income. The fair value is calculated by either the quoted price (if listed) or a

broker using models with inputs from market prices. On disposal or expiration, realised gains and losses are also recognised in the Statement of

Comprehensive Income as capital items.

Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments and money market funds, that are

readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

Cash held in margin/collateral accounts at the Company’s brokers is presented as Cash collateral receivable from brokers in the financial statements.

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

Trade receivables, prepayments and other debtors

Trade receivables, prepayments and other debtors are measured at amortised cost or estimated fair value, with balances revalued for exchange rate

movements.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

Trade payables and short term borrowings

Trade payables and short term borrowings are measured at amortised cost and revalued for exchange rate movements.

Revolving credit facility

The revolving credit facility is recognised at amortised cost and revalued for exchange rate movements.

Income

Dividends receivable on quoted equity shares are taken to revenue on an ex-dividend basis. Dividends receivable on equity shares where no

ex-dividend date is quoted are brought into account when the Company’s right to receive payment is established. Fixed returns on non-equity

shares are recognised on a time-apportioned basis. Dividends from overseas companies are shown gross of any withholding taxes which are

disclosed separately in the Statement of Comprehensive Income.

Special dividends are taken to the revenue or capital account depending on their nature. In deciding whether a dividend should be regarded as

a capital or revenue receipt, the Board reviews all relevant information as to the reasons for the sources of the dividend on a case-by-case basis.

When the Company has elected to receive scrip dividends in the form of additional shares rather than in cash, the amount of the cash dividend forgone

is recognised as income. Any excess in the value of the cash dividend is recognised in the capital column.

Interest income on fixed interest securities is recognised in the Statement of Comprehensive Income based on the effective yield to maturity of the fixed

interest security.

All other income is accounted on a time-apportioned accruals basis and is recognised in the Statement of Comprehensive Income.

Expenses and finance costs

All expenses are accounted on an accruals basis. On the basis of the Board’s expected long-term split of total returns in the form of capital and revenue

returns of 70% and 30% respectively, the Company charges 70% of its management fee and finance costs to capital.

Expenses incurred directly in relation to arranging debt finance are amortised over the term of the finance.

Expenses incurred in buybacks of shares are charged to the capital reserve through the Statement of Changes in Equity.

Taxation

The charge for taxation is based on the net revenue for the year and takes into account taxation deferred or accelerated because of temporary

differences between the treatment of certain items for accounting and taxation purposes.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amount

for financial reporting purposes at the reporting date. Deferred tax assets are only recognised if it is considered more likely than not that there will be

suitable profits from which the future reversal of timing differences can be deducted. In line with the recommendations of the SORP, the allocation

method used to calculate the tax relief on expenses charged to capital is the “marginal” basis. Under this basis, if taxable income is capable of being

offset entirely by expenses charged through the revenue account, then no tax relief is transferred to the capital account.

Dividends payable to shareholders

Dividends to shareholders are recognised as a liability in the period in which they are paid or approved in general meetings and are taken to the

Statement of Changes in Equity. Dividends declared and approved by the Company after the Balance Sheet date have not been recognised as a liability

of the Company at the Balance Sheet date.

Non-current liabilities: Loan Notes

The non-current liabilities are valued at amortised cost. Costs in relation to arranging the debt finance have been capitalised and are amortised over the

term of the finance. Hence, amortised cost is the par value less the amortised costs of issue.

The Euro Loan Notes are shown at amortised cost with the exchange difference on the principal amounts to be repaid reflected. Any gain or loss arising

from changes in the exchange rate between Euro and Sterling is included in the capital reserves and shown in the capital column of the Statement of

Comprehensive Income.

The JPY Loan Notes are shown at amortised cost with the exchange difference on the principal amounts to be repaid reflected. Any gain or loss arising

from changes in the exchange rate between JPY and Sterling is included in the capital reserves and shown in the capital column of the Statement of

Comprehensive Income.

Further details of the non-current liabilities are set out in note 12 and in the Glossary.

Capital redemption reserve

The capital redemption reserve represents non-distributable reserves that arise from the purchase and cancellation of shares.

Share premium

The share premium account represents the accumulated premium paid for shares issued in previous periods above their nominal value less issue

expenses. This is a reserve forming part of the non-distributable reserves. The following items are taken to this reserve:

• costs associated with the issue of equity; and

• premium on the issue of shares.

AVI Global Trust plc / Annual Report 2023

1. General information and accounting policies continued

Capital reserve

The following are taken to the capital reserve through the capital column in the Statement of Comprehensive Income:

Capital reserve – other, forming part of the distributable reserves:

• gains and losses on the disposal of investments;

• amortisation of issue expenses of Loan Notes;

• costs of share buybacks;

• exchange differences of a capital nature; and

• expenses, together with the related taxation effect, allocated to this reserve in accordance with the above policies.

Capital reserve – investment holding gains, not distributable:

• increase and decrease in the valuation of investments held at the year-end.

Merger reserve

The merger reserve represents the share premium on shares issued on the acquisition of Selective Assets Trust plc on 13 October 1995 and

is not distributable.

Revenue reserve

The revenue reserve represents the surplus of accumulated profits and is distributable by way of dividends.

2. Income

2023 2022

£’000 £’000

Income from investments

UK dividends 296 524

Overseas dividends 21,544 21,821

Income from fixed interest securities 240 97

22,080 22,442

Other income

Deposit interest 3,005 669

Total return swap dividends* (416) –

Total return swap interest – (22)

Exchange (losses)/gains on receipt of income* (421) 24

Interest received on corporation tax refunds 202 –

24,450 23,113

* Exchange movements arise from ex-dividend date to payment date.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

3. Investment management fee and other expenses

2023 2023 2022 2022

Revenue Capital 2023 Revenue Capital 2022

return return Total return return Total

£’000 £’000 £’000 £’000 £’000 £’000

Management fee 2,067 4,824 6,891 2,295 5,355 7,650

Other expenses:

Directors’ emoluments – fees 190 – 190 183 – 183

Auditor’s remuneration – audit 54 – 54 45 – 45

Marketing 573 – 573 570 – 570

Printing and postage costs 69 – 69 71 – 71

Registrar fees 95 – 95 108 – 108

Custodian fees 83 – 83 263 – 263

Depositary fees 123 – 123 144 – 144

Advisory and professional fees 360 – 360 560 32 592

Costs associated with dividend receipts 18 – 18 14 – 14

Irrecoverable VAT 32 – 32 101 – 101

Regulatory fees 98 – 98 89 – 89

Directors’ insurances and other expenses 87 – 87 88 – 88

Charitable donations – – – 358 – 358

1,782 – 1,782 2,594 32 2,626

The management fee calculated in accordance with the IMA amounted to 0.7% of net assets for assets up to £1bn and 0.6% of net assets over £1bn

calculated on a quarterly basis.

Details of the IMA and fees paid to the Investment Manager are set out in the Report of the Directors.

4. Finance costs

2023 2023 2022 2022

Revenue Capital 2023 Revenue Capital 2022

return return Total return return Total

£’000 £’000 £’000 £’000 £’000 £’000

Loan, debenture and revolving credit facility interest

4.184% Series A Sterling Unsecured Loan Notes 2036 375 876 1,251 377 879 1,256

3.249% Series B Euro Unsecured Loan Notes 2036 254 593 847 247 578 825

2.93% Euro Senior Unsecured Loan Notes 2037 152 354 506 150 349 499

1.38% JPY Senior Unsecured Loan Notes 2032 188 439 627 48 113 161

1.44% JPY Senior Unsecured Loan Notes 2033 20 46 66 – – –

JPY Revolving credit facility 62 144 206 91 215 306

Total return swap interest 282 659 941 – – –

1,333 3,111 4,444 913 2,134 3,047

Amortisation

4.184% Series A Sterling Unsecured Loan Notes 2036 – 7 7 – 7 7

3.249% Series B Euro Unsecured Loan Notes 2036 – 5 5 – 5 5

2.93% Euro Senior Unsecured Loan Notes 2037 – 8 8 – 7 7

1.38% JPY Senior Unsecured Loan Notes 2032 – 18 18 – 4 4

1.44% JPY Senior Unsecured Loan Notes 2033 – 1 1

JPY Revolving credit facility 48 112 160 49 113 162

48 151 199 49 136 185

Bank interest

Bank debit interest – – – 1 2 3

Total 1,381 3,262 4,643 963 2,272 3,235

Exchange gains/(losses) on Loan Notes* – 6,135 6,135 – (838) (838)

* Revaluation of Euro and JPY Loan Notes.

AVI Global Trust plc / Annual Report 2023

5. Taxation

Year ended 30 September 2023 Year ended 30 September 2022

Revenue Capital Revenue Capital

return return Total return return Total

£’000 £’000 £’000 £’000 £’000 £’000

Analysis of (credit)/charge for the year

Overseas tax not recoverable* 1,638 – 1,638 1,769 – 1,769

Withholding tax received previously written off (29) – (29) (810) – (810)

Corporation tax refund** (2,430) – (2,430) – – –

Tax (credit)/charge for the year (821) – (821) 959 – 959

* Tax deducted on payment of overseas dividends by local tax authorities.

** Corporation tax refund in respect of 2008/09.

The taxation assessed for the year is lower (2022: higher) than the standard rate of corporation tax in the UK of 22% (2022: 19%). The differences are

explained below:

Year ended 30 September 2023 Year ended 30 September 2022

Revenue Capital Revenue Capital

return return Total return return Total

£’000 £’000 £’000 £’000 £’000 £’000

Profit/(loss) before taxation 19,220 114,096 133,316 17,261 (127,328) (110,067)

Profit/(loss) before taxation multiplied by the standard rate

of corporation tax of 22% (2022: 19%) 4,229 25,101 29,330 3,280 (24,192) (20,912)

Effects of:

– UK dividend income (65) – (65) (99) – (99)

– Tax – exempt overseas investment income (4,648) – (4,648) (4,151) – (4,151)

– (Gains)/losses on investments, exchange gains

on capital items and movement on fair value

of derivative financial instruments – (26,880) (26,880) – 22,737 22,737

– Current period tax losses not utilised 484 1,779 2,263 746 1,455 2,201

– Corporate interest restriction – – – 93 – 93

– Withholding tax received previously written off (29) – (29) (810) – (810)

– Overseas tax not recoverable 1,638 – 1,638 1,769 – 1,769

– Corporation tax refunds (2,430) – (2,430) – – –

– Disallowed expenses – – – 85 – 85

– Offshore income gains – – – 46 – 46

Tax (credit)/charge for the year (821) – (821) 959 – 959

At 30 September 2023, the Company had management expenses of £96,478,000 (30 September 2022: £87,430,000), a non-trade loan relationship

deficit of £23,688,000 (30 September 2022: £22,093,000) and carried forward disallowed interest expense of £6,805,000 (30 September 2022:

£6,783,000) that are potentially available to offset future taxable revenue. A deferred tax asset of £31,743,000 (30 September 2022: £29,076,000),

based on the enacted UK corporation tax rate of 25% that applied from 1 April 2023, has not been recognised because the Company is not expected to

generate sufficient taxable income in future periods that the carried forward tax losses and disallowed interest expense can be utilised against.

Deferred tax is not provided on capital gains and losses arising on the revaluation or disposal of investments because the Company meets (and intends

to continue for the foreseeable future to meet) the conditions to maintain its approval as an investment trust company.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

6. Dividends

2023 2022

£’000 £’000

Amounts recognised as distributions to equity holders in the year:

Final dividend for the year ended 30 September 2022 of 2.10p (2022: 2.10p) per Ordinary Share 10,258 10,685

Interim dividend for the year ended 30 September 2023 of 1.20p (2022: 1.20p) per Ordinary Share 5,701 5,999

15,959 16,684

During the year ended 30 September 2022 £709k was received in respect of prior years’ dividends cancelled

†

Set out below are the interim and final dividends paid or proposed on Ordinary Shares in respect of the financial year, which is the basis on which the

requirements of Section 1159 of the Corporation Tax Act 2010 are considered.

2023 2022

£’000 £’000

Interim dividend for the year ended 30 September 2023 of 1.20p (2022: 1.20p) per Ordinary Share 5,701 5,999

Proposed final dividend for the year ended 30 September 2023 of 2.30p (2022: 2.10p) per Ordinary Share 10,514* 10,275

Proposed special dividend for the year ended 30 September 2023 of 0.20p (2022: nil) per Ordinary Share 914* –

17,129 16,274

* Based on shares in circulation on 9 November 2023.

† This includes the disposal of 66,648 ordinary 10p shares from dividend proceeds reinvested, realising £709,000.

7. Earnings per Ordinary Share

The earnings per Ordinary Share is based on the Company’s net profit after tax of £134,137,000 (2022: net loss of £111,026,000) and on 478,739,622

(2022: 503,274,200*) Ordinary Shares, being the weighted average number of Ordinary Shares in issue (excluding shares in treasury) during the year.

The earnings per Ordinary Share detailed above can be further analysed between revenue and capital as follows:

30 September 2023 30 September 2022

Basic and diluted Revenue Capital Total Revenue Capital Total

Net profit/(loss) (£’000) 20,041 114,096 134,137 16,302 (127,328) (111,026)

Weighted average number of Ordinary Shares 478,739,622 503,274,200*

Earnings per Ordinary Share 4.19p 23.83p 28.02p 3.24p (25.30)p (22.06)p

* 2022 figure restated for Share Split.

There are no dilutive instruments issued by the Company (2022: none).

AVI Global Trust plc / Annual Report 2023

8. Investments held at fair value through profit or loss

30 September 2023 30 September 2022

Unrealised Unrealised

Debt derivatives derivatives Debt

Equities securities asset liabilities Total Equities securities Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Financial assets held at fair value

Opening book cost 888,954 20,893 – – 909,847 934,242 – 934,242

Opening investment holding gains 97,477 1,466 – – 98,943 260,868 – 260,868

Opening fair value 986,431 22,359 – – 1,008,790 1,195,110 – 1,195,110

Movement in the year:

Purchases at cost 472,751 39,655 – – 512,406 371,443 20,893 392,336

Sales/Close – Proceeds (443,380) (60,041) (4,624) – (508,045) (457,986) – (457,986)

– realised gains/(losses) on sales and

close of total return swaps 65,525 (507) 4,624 – 69,642 41,255 – 41,255

Increase/(decrease) in investment holding gains 63,432 (1,466) 2,174 (20,873) 43,267 (163,391) 1,466 (161,925)

Closing fair value of investments 1,144,759 – 2,174 (20,873) 1,126,060 986,431 22,359 1,008,790

Closing book cost 983,849 – – – 983,849 888,954 20,893 909,847

Closing investment holding gains 160,910 – 2,174 (20,873) 142,211 97,477 1,466 98,943

Closing fair value 1,144,759 – 2,174 (20,873) 1,126,060 986,431 22,359 1,008,790

Financial assets and liabilities held at fair value

30 September 30 September

2023 2022

£’000 £’000

Equities 1,144,759 986,431

Fixed interest securities – 22,359

Total return swaps – asset 2,174 –

Total return swaps – liability (20,873) –

1,126,060 1,008,790

Year ended Year ended

30 September 30 September

2023 2022

£’000 £’000

Transaction costs

Cost on acquisitions 457 304

Cost on disposals 350 402

807 706

Analysis of capital gains

Gains on sales/close out of financial assets 69,642 41,255

Movement in investment holding gains for the year 43,267 (161,925)

Net gains/(losses) on investments 112,909 (120,670)

The Company received £508,045,000 (2022: £457,986,000) from investments sold in the year. The book cost of these investments when they were

purchased was £438,403,000 (2022: £416,731,000). These investments have been revalued over time and until they were sold any unrealised gains

or losses were included in the fair value of the investments.

The Company has ten interests amounting to an investment of 3% or more of the equity capital which are set out in the Investment Portfolio on pages

22 and 23.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

9. Trade receivables, prepayments and other debtors

2023 2022

£’000 £’000

Total returns swap 2,174 –

Trade receivables, prepayments and other debtors

Sales for future settlement 3,271 22,948

Cash collateral receivable 39,325

Tax recoverable 456 306

Prepayments and accrued income 2,585 1,914

VAT recoverable 37 49

Total trade receivables, prepayments and other debtors 45,674 25,217

Cash collateral receivable is cash held at Jefferies International Limited (the prime broker). The cash is held at the prime broker against exposure to

derivatives.

Tax recoverable relates to withholding tax in a number of countries, some of which is past due, but is in the process of being reclaimed by the Custodian

through local tax authorities and also tax deducted on UK REIT dividends, which the Company expects to receive in due course.

No other receivables are past due or impaired.

10. Cash and cash equivalents

2023 2022

£’000 £’000

Cash at bank 4,231 6,274

Liquidity account – 61,000

4,231 67,274

11. Current liabilities

2023 2022

£’000 £’000

Total return swap 20,873 –

Revolving credit facility – –

Trade payables, accruals and short term borrowings

Purchases for future settlement 1,303 5,734

Amounts owed for share buybacks 3 2,058

Management fees 573 –

Interest payable 648 657

Other payables 871 431

Total trade payables, accruals and short term borrowings 3,398 8,880

24,271 8,880

Revolving credit facility

On 29 April 2019, the Company entered into an agreement with Scotiabank Europe Plc for a JPY4.0bn (£27,700,000) unsecured revolving credit facility

(the facility) for a period of three years.

The facility was increased to JPY9.0bn and converted to a multi-currency facility with drawings available in Japanese Yen, Pounds Sterling, US Dollars

and Euros on 5 March 2020, with an interest rate of 0.75% over LIBOR on any drawn balances.

On 26 August 2021 the facility was further increased and subsequently reduced to JPY8.0bn on 24 July 2023. The agreement was additionally novated

in reference to the relevant changes in interest calculations with the discontinuation of LIBOR and extended to 26 August 2024.

The interest chargeable will be the appropriate risk free rate (RFR)* plus the additional margin:

• Japanese Yen 1.025% margin over the Tokyo unsecured overnight rate (TONAR)**;

• Pounds Sterling 1.42% margin over SONIA (sterling overnight index average);

* Risk free rate (RFR) – is the rate of return from an investment with zero risk. This is calculated by deducting the inflation rate from the yield of the relevant Treasury bond.

The Treasury bond issued in the relevant currency is equivalent to zero risk.

**If TONAR is less than 0% it will be deemed to be 0%.

AVI Global Trust plc / Annual Report 2023

11. Current liabilities continued

• US Dollars 1.25% margin above the secured overnight financing rate (SOFR); and

• Euros 1.25% margin above the Euro short-term rate (€ STR).

Undrawn balances below JPY2.0bn are charged at 0.35% and any undrawn portion above this is charged at 0.30%.

Under the terms of the facility, the covenant requires that the net assets shall not be less than £300m and the adjusted net asset coverage to borrowings

shall not be less than 4:1.

The facility is shown at amortised cost and revalued for exchange rate movements. Any gain or loss arising from changes in exchange rates is included

in the capital reserves and shown in the capital column of the Statement of Comprehensive Income. Interest costs are charged to capital and revenue

in accordance with the Company’s accounting policies.

At 30 September 2023 At 30 September 2022

¥’000 £’000 ¥’000 £’000

Opening balance – – 9,000,000 59,821

Proceeds from amounts drawn 8,000,000 49,144 – –

Repayment (8,000,000) (44,359) (9,000,000) (55,149)

Exchange rate movement – (4,785) – (4,672)

Total – – – –

12. Non-current liabilities

2023 2022

£’000 £’000

4.184% Series A Sterling Unsecured Loan Notes 2036 29,920 29,913

3.249% Series B Euro Unsecured Loan Notes 2036 25,960 26,235

2.93% Euro Senior Unsecured Loan Notes 2037 17,250 17,430

1.38% JPY Senior Unsecured Loan Notes 2032 43,761 49,315

1.44% JPY Senior Unsecured Loan Notes 2033 24,658 –

Total 141,549 122,893

The amortised costs of issue expenses are set out in note 4.

The fair values of the Loan Notes are set out in note 15.

The Company issued two Loan Notes on 15 January 2016:

£30,000,000 4.184% Series A Sterling Unsecured Loan Notes due 15 January 2036

€30,000,000 3.249% Series B Euro Unsecured Loan Notes due 15 January 2036

The Company issued further Loan Notes on 1 November 2017:

€20,000,000 2.93% Euro Senior Unsecured Loan Notes due 1 November 2037

The Company issued further Loan Notes on 6 July 2022:

¥8,000,000,000 1.38% JPY Senior Unsecured Loan Notes due 6 July 2032

¥4,500,000,000 1.44% JPY Senior Unsecured Loan Notes due 25 July 2033

The Company issued further Loan Notes on 25 July 2023:

¥4,500,000,000 1.44% JPY Senior Unsecured Loan Notes due 25 July 2033

Under the terms of the Loan Notes, the covenant requires that the net assets of the Company shall not be less than £300,000,000 and total indebtedness

shall not exceed 30% of net assets.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

13. Called-up share capital

Nominal

Number value

of shares £’000

Allotted, called up and fully paid

Ordinary Shares of 2p each (2022: 2p)

Balance at beginning of the year 537,052,524 10,741

Ordinary Shares bought back and cancelled (29,277,886) (586)

Balance at end of the year 507,774,638 10,155

Treasury shares

Balance at beginning of the year 45,600,956

Balance at end of the year 45,600,956

Total Ordinary Share capital excluding treasury shares 462,173,682

At 30 September 2023, the Company held 45,600,956 shares in treasury, with a nominal value of £912,000.

Ordinary Shares of 2p each

During the year to 30 September 2023, 29,277,886 Ordinary Shares of 2p were bought back for cancellation for an aggregate consideration of

56,668,000 (2022: 15,225,722 shares for aggregate consideration of £28,681,000).

The allotted, called up and fully paid shares at 30 September 2023 consisted of 507,774,638 Ordinary Shares of 2p each in issue, and 45,600,956

Ordinary Shares held in treasury. The total voting rights attaching to Ordinary Shares in issue and ranking for dividends consisted of 462,173,682 as at

30 September 2023.

14. Net asset value

The net asset value per Ordinary Share and the net asset value attributable to the Ordinary Shares at the year-end are calculated in accordance with

their entitlements in the Articles of Association and were as follows:

30 September 2023 30 September 2022

NAV per Net asset value NAV per Net asset value

Ordinary Share attributable Ordinary Share attributable

Pence £’000 Pence £’000

Basic and diluted 223.08 1,031,018 197.27 969,508

Net asset value per Ordinary Share is based on net assets and on 462,173,682 Ordinary Shares (2022: 491,451,568), being the number of Ordinary

Shares in issue excluding Treasury Shares at the year-end.

15. Financial instruments and capital disclosures

Investment objective and policy

The Company’s investment objective and policy are detailed on page 54.

The Company’s financial instruments comprise equity and fixed-interest investments, cash balances, receivables, payables and borrowings. The Company

makes use of borrowings to achieve improved performance in rising markets. The risk of borrowings may be reduced by raising the level of cash balances

or fixed-interest investments held.

Risks

The risks identified arising from the financial instruments are market risk (which comprises market price risk, interest rate risk and foreign currency risk),

liquidity risk and credit and counterparty risk. The Company may also enter into derivative transactions to manage risk.

The Board and Investment Manager consider and review the risks inherent in managing the Company’s assets which are detailed below.

AVI Global Trust plc / Annual Report 2023

15. Financial instruments and capital disclosures continued

Market risk

Market risk arises mainly from uncertainty about future prices of financial instruments used in the Company’s business. It represents the potential loss

which the Company might suffer through holding market positions by way of price movements, interest rate movements, exchange rate movements and

systematic risk (risk inherent to the market, reflecting economic and geopolitical factors). The Investment Manager assesses the exposure to market risk

when making each investment decision and these risks are monitored by the Investment Manager on a regular basis and the Board at quarterly meetings

with the Investment Manager.

Market price risk

Market price risk (i.e. changes in market prices other than those arising from currency risk or interest rate risk) may affect the value of investments.

Adherence to investment policies mitigates the risk of excessive exposure to any particular type of security or issuer. The portfolio is managed with

an awareness of the effects of adverse price movements through detailed and continuing analysis with the objective of maximising overall returns to

shareholders. The assessment of market risk is based on the Company’s portfolio as held at the year-end. The Company has experienced volatility in

the fair value of investments during recent years due to geopolitical events. Further additional volatility during the year has resulted from the Russian

invasion of Ukraine, the ongoing Israel/Palestine conflict, UK political instability, and inflation. The Company has used 20% to demonstrate the impact

of a significant reduction/increase in the fair value of the investments and the impact upon the Company that might arise from future significant events.

If the fair value of the listed equity investments at the year-end of £1,142,936,000 (2022: £961,000,000) decreased or increased by 20%, then it would

have had an adverse/positive impact on the Company’s capital return and equity of £228,587,000 (2022: £192,200,000).

As at 30 September 2023, £1,823,000 (2022: £25,341,000) of the Company’s investments are in unquoted companies held at fair value. A change in

market inputs that would result in a 20% decrease in the fair value of the unquoted investments at 30 September 2023 would have decreased the net

assets attributable to the Company’s shareholders by £365,000 (30 September 2022: £5,068,000); an equal change in the opposite direction would have

increased the net assets attributable to the Company’s shareholders and reduced the loss for the year by an equal amount.

Foreign currency

The value of the Company’s assets and the total return earned by the Company’s shareholders can be significantly affected by foreign exchange rate

movements, as most of the Company’s assets are denominated in currencies other than Pounds Sterling, the currency in which the Company’s financial

statements are prepared. Income denominated in foreign currencies is converted to Pounds Sterling upon receipt.

A 5% rise or decline of Sterling against foreign currency denominated (i.e. non Pounds Sterling) assets and liabilities held at the year-end would have

increased/decreased the net asset value by £47,448,000 (2022: £40,462,000).

The currency exposure is as follows:

Currency risk

GBP EUR USD SEK JPY NOK INR SGD CAD Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30 September 2023

Other receivables 1,073 456 42,926 – 1,219 – – – – 45,674

Cash and cash equivalents 4,196 – – – 35 – – – – 4,231

Other payables (1,484) (1,423) (249) – (242) – – – – (3,398)

Total return swaps – – (20,705) – – – – – 2,006 (18,699)

4.184% Series A Sterling Unsecured Loan Notes 2036 (29,920) – – – – – – – – (29,920)

3.249% Series B Euro Unsecured Loan Notes 2036 – (25,960) – – – – – – – (25,960)

2.93% Euro Senior Unsecured Loan Notes 2037 – (17,250) – – – – – – – (17,250)

1.38% JPY Senior Unsecured Loan Notes 2032 – – – – (43,761) – – – – (43,761)

1.44% JPY Senior Unsecured Loan Notes 2033 – – – – (24,658) – – – – (24,658)

Revolving credit facility – – – – – – – – – –

Currency exposure on net monetary items (26,135) (44,177) 21,972 – (67,407) – – – 2,006 (113,741)

Investments held at fair value through

profit or loss–equities 108,195 253,920 376,754 3,989 203,302 153,545 34,097 10,957 – 1,144,759

Total net currency exposure 82,060 209,743 398,726 3,989 135,895 153,545 34,097 10,957 2,006 1,031,018

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

This exposure is representative at the Balance Sheet date and may not be representative of the year as a whole. The balances are of the holding

investment and may not represent the actual exposure of the subsequent underlying investment.

GBP EUR USD SEK JPY NOK INR Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

At 30 September 2022

Other receivables 795 15,034 8,337 – 1,051 – – 25,217

Cash and cash equivalents 67,274 – – – – – – 67,274

Other payables (7,351) (392) – (106) (1,031) – – (8,880)

4.184% Series A Sterling Unsecured Loan Notes 2036 (29,913) – – – – – – (29,913)

3.249% Series B Euro Unsecured Loan Notes 2036 – (26,235) – – – – – (26,235)

2.93% Euro Senior Unsecured Loan Notes 2037 – (17,430) – – – – – (17,430)

1.38% JPY Senior Unsecured Loan Notes 2032 – – – – (49,315) – – (49,315)

Revolving credit facility – – – – – – – –

Currency exposure on net monetary items 30,805 (29,023) 8,337 (106) (49,295) – – (39,282)

Investments held at fair value through profit or loss –equities 129,463 163,571 379,535 13,989 186,945 101,232 34,055 1,008,790

Total net currency exposure 160,268 134,548 387,872 13,883 137,650 101,232 34,055 969,508

Interest rate risk

Interest rate movements may affect:

• the fair value of investments in fixed-interest rate securities;

• the level of income receivable on cash deposits;

• the interest payable on variable rate borrowings; and

• the fair value of the Company’s long-term debt.

The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making

investment decisions.

The Loan Notes issued by the Company pay a fixed rate of interest and are carried in the Company’s Balance Sheet at amortised cost rather than

at fair value. Hence, movements in interest rates will not affect net asset values, as reported under the Company’s accounting policies, but may have

an impact on the Company’s share price and discount/premium. The fair value of the debt and its effect on the Company’s assets is set out below.

The exposure at 30 September of financial assets and financial liabilities to interest rate risk is shown by reference to floating interest rates.

At At

30 September 30 September

2023 2022

£’000 £’000

Exposure to floating interest rates:

Fixed interest securities – 22,359

Cash collateral receivable from broker 39,325 –

Cash and cash equivalents 4,231 67,274

JPY revolving credit facility – –

AVI Global Trust plc / Annual Report 2023

15. Financial instruments and capital disclosures continued

Interest rate risk continued

30 September 2023 30 September 2022

Book cost Fair value Book cost Fair value

£’000 £’000 £’000 £’000

4.184% Series A Sterling Unsecured Loan Notes 2036 45,689 25,051 29,913 25,127

3.249% Series B Euro Unsecured Loan Notes 2036 36,588 22,158 26,235 22,668

2.93% Euro Senior Unsecured Loan Notes 2037 24,717 13,936 17,430 14,214

1.38% JPY Senior Unsecured Loan Notes 2032 49,377 40,584 49,315 48,640

1.44% JPY Senior Unsecured Loan Notes 2033 28,265 22,757 – –

Total 184,636 124,487 122,893 110,649

Interest rate sensitivity of the Company’s Loan Notes is an APM as set out in the Glossary.

Liquidity risk

Liquidity risk is mitigated by the fact that the Company has £43,556,000 (2022: £67,274,000) cash and cash equivalents, the assets are readily realisable

and further short-term flexibility is available through the use of bank borrowings. The Company is a closed-ended fund, assets do not need to be

liquidated to meet redemptions, and sufficient liquidity is maintained to meet obligations as they fall due.

The remaining contractual payments on the Company’s financial liabilities at 30 September, based on the earliest date on which payment can be required

and current exchange rates at the Balance Sheet date, were as follows:

In more than In more than In more than

1 year but 2 years but 3 years but

In 1 year not more not more not more In more

or less than 2 years than 3 years than 10 years than 10 years Total

£’000 £’000 £’000 £’000 £’000 £’000

At 30 September 2023

4.184% Series A Sterling Unsecured Loan Notes 2036 (1,255) (1,255) (1,255) (8,786) (33,138) (45,689)

3.249% Series B Euro Unsecured Loan Notes 2036 (845) (845) (845) (5,918) (28,135) (36,588)

2.93% Euro Senior Unsecured Loan Notes 2037 (508) (508) (508) (3,558) (19,635) (24,717)

1.38% JPY Senior Unsecured Loan Note 2032 (606) (606) (606) (47,559) – (49,377)

1.44% JPY Senior Unsecured Loan Note 2033 (356) (356) (356) (27,197) – (28,265)

Total return swap liabilities (20,873) – – – – (20,873)

Other payables (3,398) – – – – (3,398)

(27,841) (3,570) (3,570) (93,018) (80,908) (208,907)

In more than In more than In more than

1 year but 2 years but 3 years but

In 1 year not more not more not more In more

or less than 2 years than 3 years than 10 years than 10 years Total

£’000 £’000 £’000 £’000 £’000 £’000

At 30 September 2022

4.184% Series A Sterling Unsecured Loan Notes 2036 (1,255) (1,255) (1,255) (8,786) (34,393) (46,944)

3.249% Series B Euro Unsecured Loan Notes 2036 (855) (855) (855) (5,982) (29,293) (37,840)

2.93% Euro Senior Unsecured Loan Notes 2037 (514) (514) (514) (3,596) (20,360) (25,498)

1.38% JPY Senior Unsecured Loan Notes 2032 (683) (683) (683) (54,275) – (56,324)

Other payables (8,880) – – – – (8,880)

(12,187) (3,307) (3,307) (72,639) (84,046) (175,486)

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

Credit risk

Credit risk is mitigated by diversifying the counterparties through which the Investment Manager conducts investment transactions. The credit standing

of all counterparties is reviewed periodically, with limits set on amounts due from any one counterparty. As at the year-end cash is held with JP Morgan

(A2*) and Morgan Stanley in the Liquidity Fund (AAA*).

The total credit exposure represents the carrying value of fixed-income investments, cash and receivable balances and totals £52,079,000

(2022: £114,850,000).

Fair values of financial assets and financial liabilities

Valuation of financial instruments

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the

relevant assets as follows:

• Level 1 – valued using quoted prices unadjusted in active markets for identical assets or liabilities.

• Level 2 – valued by reference to valuation techniques using observable inputs for the asset or liability other than quoted prices included within Level 1.

• Level 3 – valued by reference to valuation techniques using inputs that are not based on observable market data for the asset or liability.

The tables below set out fair value measurements of financial instruments as at the year-end, by the level in the fair value hierarchy into which the fair

value measurement is categorised.

Level 1 Level 2 Level 3 Total

Financial assets at fair value through profit or loss at 30 September 2023 £’000 £’000 £’000 £’000

Equity investments 1,142,936 – 1,823 1,144,759

Total return swap assets – 2,174 – 2,174

1,142,936 2,174 1,823 1,146,933

Level 1 Level 2 Level 3 Total

Financial assets at fair value through profit or loss at 30 September 2022 £’000 £’000 £’000 £’000

Equity investments 961,000 – 25,431 986,431

Fixed interest securities 22,359 – – 22,359

983,359 – 25,431 1,008,790

Fair value of Level 3 investments

30 September 30 September

2023 2022

£’000 £’000

Opening fair value of investments 25,431 3,081

Acquisition 583 31,179

Transfer from Level 1 to Level 3 in the year – –

Sales – proceeds (21,715) (8,249)

Realised gain/(loss) on equity sales (1,687) 441

Movement in investment holding gains (789) (1,021)

Closing fair value of investments 1,823 25,431

The fair values of the Level 3 investments are valued with reference to the net asset value.

Financial liabilities

Valuation of Loan Notes

The Company’s Loan Notes are measured at amortised cost, with the fair values and costs of early redemption set out in the Glossary on page 104.

Other financial assets and liabilities of the Company are carried in the Balance Sheet at an approximation to their fair value.

There is no publicly available price for the Company’s Loan Notes. Their fair market value has been derived by calculating the relative premium

(or discount) of the loan versus the publicly available market price of the reference market instrument and exchange rates. As this price is derived

by a model, using observable inputs, it would be categorised as Level 2 under the fair value hierarchy.

* Moody’s credit ratings.

AVI Global Trust plc / Annual Report 2023

15. Financial instruments and capital disclosures continued

Financial liabilities continued

Valuation of Loan Notes continued

The financial liabilities in the table below are shown at their fair value, being the amount at which the liability may be transferred in an orderly transaction

between market participants.

Level 1 Level 2 Level 3 Total

Financial liabilities at 30 September 2023 £’000 £’000 £’000 £’000

Loan Notes – (124,487) – (124,487)

Total return swap liabilities – (20,873) – (20,873)

– (145,360) – (145,360)

Level 1 Level 2 Level 3 Total

Financial liabilities at 30 September 2022 £’000 £’000 £’000 £’000

Loan Notes – (110,649) – (110,649)

– (110,649) – (110,649)

The fair value of the total return swaps is derived using the market price of the underlying instruments and exchange rates and therefore would be

categorised as Level 2.

Capital management policies and procedures

The structure of the Company’s capital is described on page 55 and details of the Company’s reserves are shown in the Statement of Changes in Equity

on page 66.

The Company’s capital management objectives are:

• to ensure that it will be able to continue as a going concern;

• to achieve capital growth through a focused portfolio of investments, particularly in companies whose share prices stand at a discount to estimated

underlying net asset value, through an appropriate balance of equity capital and debt; and

• to maximise the return to shareholders while maintaining a capital base to allow the Company to operate effectively and meet obligations as they fall due.

The Board, with the assistance of the Investment Manager, regularly monitors and reviews the broad structure of the Company’s capital on an ongoing

basis. These reviews include:

• the level of gearing, which takes account of the Company’s position and the Investment Manager’s views on the market; and

• the extent to which revenue in excess of that which is required to be distributed should be retained.

The Company’s objectives, policies and processes for managing capital are unchanged from last year.

The Company is subject to externally imposed capital requirements:

a) as a public company, the Company is required to have a minimum share capital of £50,000; and

b) in accordance with the provisions of Sections 832 and 833 of the Companies Act 2006, the Company, as an investment company:

(i) is only able to make a dividend distribution to the extent that the assets of the Company are equal to at least one and a half times its liabilities

after the dividend payment has been made; and

(ii) is required to make a dividend distribution with respect to each accounting year such that it does not retain more than 15% of the income that

it derives from shares and securities in that year.

These requirements are unchanged since last year and the Company has complied with them at all times.

Financial Statements / Notes to the Financial Statements continued

AVI Global Trust plc / Annual Report 2023

16. Derivatives

The Company may use a variety of derivative contracts, including total return swaps, to enable it to gain long exposure to individual securities.

Derivatives are valued by reference to the underlying market value of the corresponding security.

At At

30 September 30 September

2023 2022

£’000 £’000

Total return swaps

Current assets 2,174 –

Current liabilities (20,873) –

Net value of derivatives (18,699) –

The gross positive exposure on total return swaps as at 30 September 2023 was £70,934,000 (30 September 2022: £nil) and the total negative exposure

of total return swaps was £46,986,000 (30 September 2022: £nil). The liabilities are secured against assets held with Jefferies International Limited (the

prime broker). The collateral held as at 30 September 2023 was £39,325,000 (30 September 2022: £nil).

17. Contingencies, guarantees and financial commitments

At 30 September 2023, the Company had no significant financial commitments.

18. Related party transactions and transactions with the Investment Manager

Fees paid to the Company’s Directors are disclosed in the Report on Remuneration Implementation on page 92. At the year-end, £nil was outstanding due

to Directors (2022: £24,000).

The transaction pursuant to the IMA with AVI is set out in the Report of the Directors on page 58. Management fees for the year amounted

to £6,891,000 (2022: £7,650,000).

As at the year-end, the following amounts were outstanding in respect of management fees: £573,000 (2022: £nil).

19. Post balance sheet events

Since the year-end, the Company has bought back 5,063,339 Ordinary Shares with a nominal value of £101,267 at a total cost of £9,930,000.

AVI Global Trust plc / Annual Report 2023

The Company’s AIFM is Asset Value Investors Limited.

The AIFMD requires certain information to be made available to

investors in AIFs before they invest and requires that material changes

to this information be disclosed in the annual report of each AIF. Those

disclosures that are required to be made pre-investment are included

within an AIFMD Investor Disclosure Document. This, together with

other necessary disclosures required under AIFMD, can be found on the

Company’s website www.aviglobal.co.uk.

All authorised AIFMs are required to comply with the AIFMD Remuneration

Code. The AIFM’s remuneration disclosures can be found on the

Company’s website www.aviglobal.co.uk.

Leverage:

For the purposes of the AIFMD, leverage is any method which increases

the Company’s exposure, including the borrowing of cash and the use

of derivatives.

This is expressed as a ratio between the Company’s exposure and its net

asset value, and is calculated under the Gross and Commitment Methods

in accordance with AIFMD. Under the Gross Method, exposure represents

the sum of the Company’s positions without taking account of any netting

or hedging arrangements. Under the Commitment Method, exposure is

calculated after certain hedging and netting positions are offset against

each other.

The Company is required to state its maximum and actual leverage levels,

calculated as prescribed by the AIFMD as at 30 September 2023. This

gives the following figures:

Leverage Exposure Gross Method Commitment Method

Maximum Limit 150% 130%

Actual Level 137% 128%

Other Reports / AIFMD Disclosures (Unaudited)

AVI Global Trust plc / Annual Report 2023

Role of the Audit Committee

The Audit Committee’s main functions are:

• To monitor the internal financial control and risk management systems

on which the Company is reliant.

• To consider whether there is a need for the Company to have its own

internal audit function.

• To monitor the integrity of the half year and annual financial

statements of the Company by reviewing and challenging, where

necessary, the actions and judgements of the Investment Manager

and the Administrator.

• To review the proposed audit programme and the subsequent Audit

Report of the external Auditor and to assess the effectiveness and

quality of the audit process, the nature of the non-audit work and

the levels of fees paid in respect of both audit and non-audit work,

in compliance with the Company’s Non-Audit Services Policy.

• To make recommendations to the Board in relation to the

appointment, re-appointment or removal of the Auditor, and to

negotiate their remuneration and terms of engagement on audit

and non-audit work.

• To monitor and review annually the external Auditor’s independence,

objectivity, effectiveness, resources and qualifications.

Composition of the Audit Committee

The Audit Committee comprises the whole Board, being independent

Directors. Calum Thomson, a qualified chartered accountant with over

25 years’ experience, has chaired the Audit Committee throughout the

year. All members of the Committee have recent and relevant financial

experience, and the Committee as a whole has competence relevant to

the investment trust sector. The Audit Committee operates within defined

terms of reference, which are available on the Company’s website.

Activities During the Year:

• Carried out a tender process in respect of the 2023 Audit and made

recommendations to the Board in relation to the appointment of

BDO LLP as Auditor;

• Review of the Half Year Report for the period to 31 March 2023,

recommending its approval to the Board;

• Consideration of the external Auditor’s plan for the audit of the year

end financial statements;

• Review of the Company’s internal controls and risk management

system, including an annual assessment of emerging and principal

risks facing the Company;

• Review of the service levels provided by the Company’s Custodian

and Depositary;

• Review of the controls reports issued by the Company’s outsourced

service providers, including those issued by the Company’s

Administrator, Depositary, Custodian and Investment Manager;

• Review of the year-end financial statements, including a review to

ensure that the financial statements issued by the Company are

considered fair, balanced and understandable, and discussion of the

findings of the external audit with the Auditor. Several sections of the

Annual Accounts are not subject to formal statutory audit, including the

Strategic Report and Investment Manager’s Review; and the checking

process for the financial information in these sections was considered

by the Audit Committee, and by the Auditor;

• Assessment and recommendation to the Board on whether it was

appropriate to prepare the Company’s financial statements on the

going concern basis. This review included challenging the assumptions

on viability of the Company and reviewing stress tests focused on its

ability to continue to meet its viability. The Board’s conclusions are

set out in the Report of the Directors on page 63;

• Consideration of a statement by the Directors on the long-term viability

of the Company. That statement can be found on page 63;

• Recommendation of a final dividend for the year ended 30 September

2023 and an interim dividend for the period to 31 March 2023;

• Review of special dividends received in the year to determine their

allocation to the revenue or capital account in the Statement of

Comprehensive Income;

• Discuss the tax treatment of a material unlisted investment;

• Review of the schedule of expenditure changes; and

• Review of the Committee’s terms of reference.

Significant Areas of Focus

The Committee considers in detail the annual and interim statements and

its key focus in its work on the Annual Report and Accounts is that the

financial statements are fair, balanced and understandable and provide

the information necessary for shareholders to assess the Company’s

position and performance, business model and strategy. The Committee

also carefully considers the most significant issues, both operational

and financial, likely to impact on the Company’s financial statements.

The key area of focus for the Committee was the valuation of the

investment portfolio: 99.84% of the equity investment portfolio at the

year-end can be verified against daily market prices and observable

price movements. The remaining 0.16% uses methodologies not based

on observable inputs.

The following other areas of focus were considered throughout the year

and as part of the annual audit:

• The possibility of management override of controls, because

individuals have access to the Company’s assets and accounting

records in order to fulfil their roles. The Board, through the Audit

Committee, is responsible for ensuring that suitable internal control

systems to prevent and detect fraud and error are designed and

implemented by the third-party service providers to the Company and

is also responsible for reviewing the effectiveness of such controls.

• Valuation of assets: Most of the Company’s assets are listed and

regularly traded and so values for these assets can be verified from

market sources. In the case of unlisted investments the Committee

challenges management to ensure that valuations are reasonable

and appropriate given the circumstances and information available.

Valuations are also verified as part of the audit process.

• Revenue recognition: Dividends are accounted for on an ex-dividend

basis and occasionally the Company receives special dividends.

All revenues are reconciled and there is separation of duties between

the Investment Manager and Administrator.

• Management fees: The Investment Manager’s fee is the largest

expense item. The Administrator ensures that each fee payment is

independently verified and the amounts paid are further verified as part

of the audit process.

• Debt covenants: Compliance with debt covenants is verified by the

Administrator at each month end and certified to lenders and notified

to the Directors.

• Going Concern and Viability: During the year and as part of the year-end

review the Committee considered the Company’s ability to continue to

operate and its future viability. Stress tests were carried out, examining

the effects of substantial falls in asset value and revenues. Throughout

the year, the Audit Committee has also dedicated time to considering

the likely economic effects and the impact on the Company of the war

in Ukraine, the ongoing Israel/Palestine conflict, political and economic

instability in the UK, supply shortages and inflationary pressures.

• Compliance with the Companies Act and Listing Rules: Reports on

compliance are received and reviewed at each quarterly Board meeting.

• Investment Trust Status: A report on compliance with the requirements

to maintain investment trust status is received and reviewed at each

Board meeting. As part of the year-end process, the Audit Committee

reviews the requirements to retain investment trust status, and in

particular the minimum dividend distribution which must be made

with respect to the year under review.

Other Reports / Report of the Audit Committee

AVI Global Trust plc / Annual Report 2023

Significant Areas of Focus continued

A further significant risk control is to ensure that the investment portfolio

accounted for in the financial statements reflects physical ownership of

the relevant securities. The Company uses the services of an independent

Custodian (JPMorgan Chase Bank, NA) to hold the assets of the Company.

The investment portfolio is reconciled regularly by the Administrator to the

Custodian’s records. The systems and controls operated by the Custodian

are also monitored by the Depositary, J.P. Morgan Europe Limited, whose

responsibilities include oversight of the safekeeping of the Company’s

assets. The Audit Committee meets with the Depositary, as necessary,

to review the work of the Depositary, and to consider the effectiveness

of the internal controls at the Custodian.

Given the nature of the Company’s investments, substantial funds can be

received from corporate actions at investee companies. The implementation

of the corporate actions can be complex and challenging. The Committee

reviews such corporate actions, and takes advice where necessary.

The Committee reviews the analysis of corporate actions provided by

the Investment Manager and ensures that the treatment in the financial

statements is appropriate.

The Company suffers withholding tax on many of its dividends received,

some of which is irrecoverable. The Audit Committee and the Investment

Manager aim to ensure that any recoverable withholding tax is received

in a timely manner. However, such recovery can be difficult in some

jurisdictions, and the Company has incurred professional service fees

in this area.

At each Audit Committee meeting, the members discussed the emerging

risks that may have an impact on the Company. Topics discussed in the

year under review included the continuing effects of the Russian invasion

of Ukraine, the conflict in Israel and in particular increasing levels of inflation

and the growing prominence of climate change.

Internal Controls

The Board confirms that there is an ongoing process for identifying,

evaluating and managing the emerging and principal risks faced by the

Company in line with the FRC’s Guidance on Risk Management, Internal

Control and Related Financial and Business Reporting published in

September 2014 and the FRC’s Guidance on Audit Committees published

in April 2016. This process has been in place for the year under review and

up to the date of approval of this report, and accords with the guidance.

In particular, it has reviewed and updated the process for identifying and

evaluating the significant risks affecting the Company and policies by

which these risks are managed. The risks of any failure of such controls are

identified in a Risk Matrix and a schedule of Key Risks, which are regularly

reviewed by the Board and which identify the likelihood and severity of the

impact of such risks and the controls in place to minimise the probability

of such risks occurring. Where reliance is made on third parties to manage

identified risks, those risks are matched to appropriate controls reported

in the relevant third-party service provider’s annual report on controls.

The principal risks identified by the Board are set out in the Strategic

Report on pages 12 to 15.

The following are the key components which the Company has in place

to provide effective internal control:

• The Board has agreed clearly defined investment criteria, which specify

levels of authority and exposure limits. Reports on compliance with

these criteria are regularly reviewed by the Board.

• The Board has a procedure to ensure that the Company can continue

to be approved as an investment company by complying with sections

1158/1159 of the Corporation Tax Act 2010.

• The Investment Manager and Administrator prepare forecasts

and management accounts which allow the Board to assess the

Company’s activities and to review its performance.

• The contractual agreements with the Investment Manager and

other third-party service providers, and adherence to them, are

regularly reviewed.

• The services of and controls at the Investment Manager and other

third-party suppliers are reviewed at least annually.

• The Audit Committee receives and reviews assurance reports on the

controls of all third-party service providers, including the Custodian

and Administrator, undertaken by professional service providers.

• The Audit Committee seeks to ensure that the Company is recovering

withholding tax on overseas dividends to the fullest extent possible.

• The Investment Manager’s Compliance Officer continually reviews

the Investment Manager’s operations. The Investment Manager also

employs an independent compliance consultant. Compliance reports

are submitted to the Committee at least annually.

Internal control systems are designed to meet the Company’s particular

needs and the risks to which it is exposed. They do not eliminate the risk of

failure to achieve business objectives and, by their nature, can only provide

reasonable and not absolute assurance against misstatement or loss.

As the Company has no employees, it does not have a whistle-blowing

policy and procedure in place. The Company delegates its main functions

to third-party providers, each of whom report on their policies and

procedures to the Audit Committee.

The Audit Committee believes that the Company does not require an

internal audit function, principally because the Company delegates its

day-to-day operations to third parties, which are monitored by the

Committee, and which provide control reports on their operations

at least annually.

Audit Tender

As discussed in the 2022 Annual Report, the audit was put out to

competitive tender during the year under review.

In October 2022, three audit firms were invited to take part in the tender

and KPMG LLP, the incumbent auditor at the time, was also considered

as a participant. Two of the firms responded that, due to varying reasons

but largely in relation to operational pressure on capacity, they were unable

to take part in the tender at that time. Following discussion and review of

the submitted tender document, the Audit Committee agreed to receive a

presentation from BDO LLP, the firm which had indicated that they were

able to take part in the tender. Further to the presentation and discussions

held with BDO LLP and giving consideration to the level of investment

trust experience of the team, the audit fee and its independence, the Audit

Committee recommended BDO LLP’s appointment as Auditor to the

Board. In accordance with the Statutory Audit Services Order 2014, issued

by the Competition and Markets Authority (CMA Order), a competitive

audit tender must be carried out at least every ten years. The Company

is therefore required to carry out a tender no later than in respect of the

financial year ending 30 September 2033.

Other Reports / Report of the Audit Committee continued

AVI Global Trust plc / Annual Report 2023

External Audit Process

The Audit Committee meets at least twice a year with the Auditor.

The Auditor provides a planning report in advance of the preparation

of the Annual Report and a report on the annual audit. The Audit

Committee has an opportunity to question and challenge the Auditor

in respect of each of these reports. In addition, the Audit Committee

Chairman discusses the audit plan and results of the audit with the external

Auditor prior to the relevant Audit Committee meeting. After each audit, the

Audit Committee reviews the audit process and considers its effectiveness.

The review of the 2022 audit concluded that the audit process had worked

well, and that the key matters had been adequately addressed by the

auditors in 2022, KPMG LLP. At least once a year, the Audit Committee

has an opportunity to discuss any aspect of the Auditor’s work with the

Auditor in the absence of the Investment Manager and administrators.

The Audit Committee specifically considered and discussed with the

Auditor the use of Alternative Performance Measures in this Annual Report.

The Auditor made a number of recommendations, which have been

incorporated in the Annual Report. The Committee also requested that

the Auditor would report on general practice with regards to disclosures

regarding Consumer Duty, and discussed this at its October 2023 meeting.

Relevant disclosures are included in this Annual Report.

Auditor Assessment and Independence

The Audit Committee has reviewed BDO’s independence policies

and procedures, including quality assurance procedures. It was

considered that those policies and procedures remained fit for purpose.

Christopher Meyrick is the Audit Partner allocated to the Company. The

audit of the financial statements for the year to 30 September 2023 is his

first as Audit Partner as it is the first year for which BDO have been the

Company’s auditors. The Committee has also taken into consideration the

standing, skills and experience of the audit firm and the audit team,

and is satisfied that BDO is both independent and effective in carrying out

their responsibilities.

The Audit Committee has discussed the findings of the FRC’s recent

2023 Audit Quality Report on the quality of audits performed by BDO

and questioned the audit team on any particular areas of the findings that

caused them to change their audit approach and was relevant to the audit

of the Company. Whilst the Committee is disappointed with the lack of

progress since the previous Audit Quality Report, it has satisfied itself that

none of the shortcomings identified are directly relevant to the audit of the

Company.

Fees Payable to the Auditor

Total fees payable to the Auditor were £54,000 (2022: £45,000 paid to

KPMG LLP). Of the total fees, the fees for audit services were £54,000

(2022: £45,000 paid to KPMG LLP). The Audit Committee has approved

and implemented a policy on the engagement of the Auditor to supply

non-audit services, taking into account the recommendations of the

FRC, and does not believe there to be any impediment to the Auditor’s

objectivity and independence.

All non-audit work to be carried out by the Auditor must be approved

by the Audit Committee in advance. The cost of non-audit services

provided by the Auditor for the financial year ended 30 September 2023

was £nil (2022: KPMG LLP £nil). The Audit Committee is satisfied that

BDO was independent on appointment and remains independent.

Re-appointment of the Auditor

Taking into account the performance and effectiveness of the Auditor

and the confirmation of their independence, the Committee recommends

that BDO LLP be re-appointed as Auditor to the Company.

CMA Order

AGT has complied throughout the year ended 30 September 2023

with the provisions of the CMA Order.

Calum Thomson

Audit Committee Chairman

9 November 2023

AVI Global Trust plc / Annual Report 2023

This Remuneration Policy provides details of the remuneration policy for

the Directors of the Company. All Directors are independent and non-

executive, appointed under the terms of Letters of Appointment, and none

have a service contract. The Company has no employees.

This Remuneration Policy was last approved at the AGM of the Company

held in 2022. The policy will apply until it is next put to shareholders for

renewal of that approval at the Company’s AGM in 2025. Any variation

of the policy prior to the 2025 AGM would be submitted for shareholder

approval.

The non-executive Directors of the Company are entitled to such rates of

annual fees as the Board at its discretion shall from time to time determine.

In addition to the annual fee, under the Company’s Articles of Association,

if any Director is requested to perform extra or special services, they will

be entitled to receive such additional remuneration as the Board may think

fit, and such remuneration may be either in addition to or in substitution for

any other remuneration that they may be entitled to receive.

Total remuneration paid to Directors is subject to an annual aggregate limit

of £300,000, as set out in the Company’s Articles of Association.

No component of any Director’s remuneration is subject to performance

factors.

The rates of fees per Director are reviewed annually. Annual fees are

pro-rated where a change takes place during a financial year.

Table of Directors’ Remuneration Components*

Component Director Rate at 30 September 2023 Purpose of reward Operation

Annual Fee All Directors £34,000 For commitment as Directors Determined by the Board

of a public company at its discretion (see note 1)

Additional Fee Chairman £19,000 For additional responsibility Determined by the Board

of the Board and time commitment at its discretion (see note 1)

Additional Fee Chairman of the £5,000 For additional responsibility Determined by the Board

Audit Committee and time commitment at its discretion (see note 1)

Additional Fee Senior Independent £2,500 For additional responsibility Determined by the Board

Director and time commitment at its discretion (see note 1)

Additional Fee All Directors Discretionary For performance of extra or Determined by the Board

special services in their role at its discretion

as a Director (see notes 1 and 2)

Expenses All Directors N/A Reimbursement of expenses paid Reimbursement upon

by them in order to perform submission of appropriate

their duties invoices

Notes:

1. The Board only exercises its discretion in setting rates of fees after an analysis of fees paid to Directors of other companies having similar profiles to that of the

Company, and consultation with third-party advisers. Individual Directors do not participate in discussions relating to their own remuneration.

2. Additional fees would only be paid in exceptional circumstances in relation to the performance of extra or special duties. No such fees were paid in the year

to 30 September 2023.

* The Company has no employees. Accordingly, there are no differences in policy on the remuneration of Directors and the remuneration of employees. No Director is entitled

to receive any remuneration which is performance-related. As a result, there are no performance conditions in relation to any elements of the Directors’ remuneration in

existence to set out in this Remuneration Policy.

Other Reports / Directors' Remuneration Policy

AVI Global Trust plc / Annual Report 2023

Views of Shareholders

Any views expressed by shareholders on the fees being paid to Directors

would be taken into consideration by the Board when reviewing levels

of remuneration.

Recruitment Remuneration Principles

1. The remuneration package for any new Chairman or non-executive

Director will be the same as the prevailing rates determined on the bases

set out above. The fees and entitlement to reclaim reasonable expenses

will be set out in Directors’ Letters of Appointment.

2. The Board will not pay any introductory fee or incentive to any person

to encourage them to become a Director, but may pay the fees of

search and selection specialists in connection with the appointment

of any new non-executive Director.

3. The Company intends to appoint only non-executive Directors for the

foreseeable future.

4. The maximum aggregate fees currently payable to all Directors is

£300,000.

Service Contracts

None of the Directors has a service contract with the Company.

Non-executive Directors are engaged under Letters of Appointment

and are subject to annual re-election by shareholders.

Loss of Office

Directors’ Letters of Appointment expressly prohibit any entitlement

to payment on loss of office.

Scenarios

The Chairman’s and non-executive Directors’ remuneration is fixed at

annual rates, and there are no other scenarios where remuneration will

vary unless there are payments for extra or special services in their role as

Directors. It is accordingly not considered appropriate to provide different

remuneration scenarios for each Director.

Statement of Consideration of Conditions Elsewhere in the Company

As the Company has no employees, a process of consulting with

employees on the setting of the Remuneration Policy is not relevant.

Other Items

None of the Directors has any entitlement to pensions or pension-related

benefits, medical or life insurance schemes, share options, long-term

incentive plans or performance-related payments. No Director is entitled

to any other monetary payment or any assets of the Company except

in their capacity (where applicable) as shareholders of the Company.

Directors’ and Officers’ liability insurance cover is maintained by the

Company, at its expense, on behalf of the Directors.

The Company has also provided indemnities to the Directors in respect

of costs or other liabilities which they may incur in connection with any

claims relating to their performance or the performance of the Company

whilst they are Directors.

The Directors’ interests in contractual arrangements with the Company

are as shown in the Report of the Directors. Except as noted in the Report

of the Directors, no Director was interested in any contracts with the

Company during the period or subsequently.

Review of the Remuneration Policy

The Board has agreed that there would be a formal review before any

change to the Remuneration Policy; and, at least once a year, the

Remuneration Policy will be reviewed to ensure that it remains appropriate.

AVI Global Trust plc / Annual Report 2023

The Directors who served during the year received the following emoluments:

Single Total Figure Table (audited information)

Fees paid (£) Taxable benefits (£) Total (£) Percentage change (%)

Name of Director 2023 2022 2023 2022 2023 2022 2022-2023 2021-2022 2021-2020

Graham Kitchen 47,664 30,500 467 877 48,131 31,377 56.3

5.2 3.4

Anja Balfour 33,000 30,500 5,514 4,450 38,514 34,950 8.2 5.2 3.4

Neil Galloway 33,000 30,500 – – 33,000 30,500 8.2 5.2 –

June Jessop

25,000 – 2,404 – 27,404 – – – –

Calum Thomson 40,500 37,490 864 1,211 41,364 38,701 8.0 10.3

3.4

Susan Noble

11,026 47,500 267 1,287 11,293 48,787 – 5.6 3.9

Nigel Rich

– 6,704 – – – 6,704 – – 4.3

190,190 183,194 9,516 7,825 199,706 191,019

* Reimbursement of travel expenses.

The average percentage change over the previous financial years. Fees for Directors who were appointed or resigned during the year were calculated on a pro-rata basis,

in order to provide a meaningful figure.

Appointed 1 January 2023.

Mr Kitchen was appointed as Chairman with effect from 20 December 2022 and since then received the additional fee for this function.

Mr Thomson was appointed as Senior Independent Director with effect from 16 December 2021 and since then received the additional fee for this function.

Retired 20 December 2022.

Retired 16 December 2021.

This Report is prepared in accordance with Schedule 8 of the Large

and Medium-sized Companies and Groups (Accounts and Reports)

(Amendment) Regulations 2013.

A resolution to approve this Report on Remuneration Implementation will be

proposed at the AGM of the Company to be held on 20 December 2023.

Statement from the Chairman

As the Company has no employees and the Board is comprised wholly

of non-executive Directors, the Board has not established a separate

Remuneration Committee. Directors’ remuneration is determined by

the Board as a whole, at its discretion within an aggregate ceiling of

£300,000 per annum. Each Director abstains from voting on their own

individual remuneration.

During the year, the Board carried out a review of the level of Directors’

fees in accordance with the Remuneration Policy and considered the level

of non-executive director fee increases applied by investment trusts with

assets of around £1bn, as well as by the Company’s peer group. This

review concluded that the fees would be increased with effect from 1 April

2023 to £53,000 (previously £50,000) per annum for the Chairman and

£34,000 (previously £32,000) per annum for other Directors. The additional

fees payable to the Chairman of the Audit Committee and to the Senior

Independent Director remained unchanged, at £5,000 and £2,500 per

annum respectively.

The Board is satisfied that the changes to the remuneration of the

Directors are compliant with the Directors’ Remuneration Policy approved

by shareholders at the AGM held on 20 December 2022.

There will be no significant change in the way that the Remuneration Policy

will be implemented in the course of the next financial year.

Directors’ Emoluments (audited information)

Directors are only entitled to fees at such rates as are determined by

the Board from time to time and in accordance with the Directors’

Remuneration Policy as approved by the shareholders.

None of the Directors has any entitlement to pensions or pension-related

benefits, medical or life insurance schemes, share options, long-term

incentive plans or performance-related payments. No Director is entitled

to any other monetary payment or any assets of the Company consequently,

there are no arrangements in place for payments to past Directors.

Accordingly, the Single Total Figure table below does not include columns

for any of these items or their monetary equivalents.

As the Company does not have a Chief Executive Officer or any executive

Directors, there are no percentage increases to disclose in respect of

their total remuneration, and it has not reported on those aspects of

remuneration that relate to executive Directors.

Directors’ & Officers’ liability insurance is maintained and paid for by the

Company on behalf of the Directors.

In line with market practice, the Company has agreed to indemnify

the Directors in respect of costs, charges, losses, liabilities, damages

and expenses, arising out of any claims or proposed claims made for

negligence, default, breach of duty, breach of trust or otherwise, or relating

to any application under Section 1157 of the Companies Act 2006,

in connection with the performance of their duties as Directors of the

Company. The indemnities would also provide financial support from the

Company should the level of cover provided by the Directors’ & Officers’

liability insurance maintained by the Company be exhausted.

Voting at AGM

A binding Ordinary Resolution approving the Directors’ Remuneration

Policy and a non-binding Ordinary Resolution adopting the Directors’

Report on Remuneration Implementation for the year ended 30 September

2022 were approved by shareholders at the AGM held on 20 December

2022. The votes cast by proxy were as follows:

Remuneration Policy

For – % of votes cast 99.70%

Against – % of votes cast 0.23%

At Chairman’s discretion – % of votes cast 0.07%

Total votes cast 160,532,124

Number of votes withheld 462,486

Report on Remuneration Implementation

For – % of votes cast 99.69%

Against – % of votes cast 0.23%

At Chairman’s discretion – % of votes cast 0.08%

Total votes cast 160,532,124

Number of votes withheld 462,486

Other Reports / Report on Remuneration Implementation

AVI Global Trust plc / Annual Report 2023

Sums Paid to Third Parties (audited information)

None of the fees referred to in the above table were paid to any third party

in respect of the services provided by any of the Directors.

Other Benefits

Taxable benefits – Article 100 of the Company’s Articles of Association

provides that Directors are entitled to be reimbursed for reasonable

expenses incurred by them in connection with the performance of their

duties and attendance at Board and General Meetings.

Pensions related benefits – Article 101 permits the Company to provide

pension or similar benefits for Directors and employees of the Company.

However, no pension schemes or other similar arrangements have been

established and no Director is entitled to any pension or similar benefits.

Share Price Total Return

The chart below illustrates the total shareholder return for a holding

in the Company’s shares, as compared to the MSCI All Country World

ex-US Index and the MSCI All Country World Index (£ adjusted total

return), which have been adopted by the Board as the measure for both

the Company’s performance and that of the Investment Manager for the

year.

Statement of Directors’ Shareholding and Share Interests

(audited information)

Neither the Company’s Articles of Association nor the Directors’

Letters of Appointment require a Director to own shares in the Company.

The interests of the Directors and their connected persons in the equity

and debt securities of the Company at 30 September 2023 (or date of

retirement if earlier or date of appointment, if later) are shown in the table

below:

Ordinary Shares

Director 2023 2022

Graham Kitchen 109,500

74,500

Susan Noble

†

55,150 55,150

Anja Balfour 36,500 36,500

Neil Galloway 25,000 –

June Jessop

††

28,000 –

Calum Thomson 44,490 44,490

Includes 33,250 shares held by Jane Kitchen as at 30 September 2023

(as at 30 September 2022: 27,250).

†

Retired 20 December 2022.

††

Appointed 1 January 2023.

Since 30 September 2023, Neil Galloway has purchased a total of 15,000

shares in the Company. There have been no other changes to Directors’

interests between 30 September 2023 and the date of this Report.

Annual Statement

On behalf of the Board and in accordance with Part 2 of Schedule 8

of the Large and Medium-sized Companies and Groups (Accounts and

Reports) (Amendment) Regulations 2013, I confirm that the above Report

on Remuneration Implementation summarises, as applicable, for the year

to 30 September 2023:

(a) the major decisions on Directors’ remuneration;

(b) any substantial changes relating to Directors’ remuneration made

during the year; and

been taken.

Graham Kitchen

Chairman

9 November 2023

AGT Price Total Return

MSCI ACWI

MSCI ACWI ex-US

Sep

2013

Sep

2014

Sep

2015

Sep

2023

Sep

2022

Sep

2021

Sep

2020

Sep

2019

Sep

2018

Sep

2017

Sep

2016

100

150

200

250

300

350

Ten years to 30 September 2023

Relative Importance of Spend on Pay

The table below shows the proportion of the Company’s income spent

on pay.

2023 2022 Difference

Spend on Directors’ fees* £190,000 £183,000 3.8%

Management fee and

other expenses £8,673,000 £10,276,000 (15.6)%

Distribution to shareholders:

(a) dividends £15,959,000 £16,683,000 (4.3)%

(b) share buybacks £56,668,000 £36,678,000 54.5%

* As the Company has no employees the total spend on remuneration comprises

only the Directors’ fees.

Note: the items listed in the table above are as required by the Large and

Medium-sized Companies and Groups (Accounts and Reports) (Amendment)

Regulations 2013 ss.20, with the exception of the management fee and other

expenses, which has been included because the Directors believe that it will help

shareholders’ understanding of the relative importance of the spend on pay.

The figures for this measure are the same as those shown in note 3 to the

financial statements.

AVI Global Trust plc / Annual Report 2023

Opinion on the financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the Company’s affairs as at

30 September 2023 and of its profit for the year then ended;

• have been properly prepared in accordance with UK-adopted

International Accounting Standards; and

• have been prepared in accordance with the requirements of the

Companies Act 2006.

We have audited the financial statements of AVI Global Trust plc (the

‘Company’) for the year ended 30 September 2023 which comprise the

Statement of Comprehensive Income, Statement of Changes in Equity,

Balance Sheet, Statement of Cash Flows, and Notes to the Financial

Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is

applicable law and UK-adopted International Accounting Standards.

Basis for opinion

We conducted our audit in accordance with International Standards on

Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under

those standards are further described in the Auditor’s responsibilities for

the audit of the financial statements section of our report. We believe

that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion. Our audit opinion is consistent with the

additional report to the audit committee.

Independence

Following the recommendation of the Audit Committee, we were appointed

by the Board of Directors on 19 January 2023 to audit the financial

statements for the year ended 30 September 2023 and subsequent

financial periods. The period of total uninterrupted engagement is one year,

covering the year ended 30 September 2023. We are independent of the

Company in accordance with the ethical requirements that are relevant to

our audit of the financial statements in the UK, including the FRC’s Ethical

Standard as applied to listed public interest entities, and we have fulfilled

our other ethical responsibilities in accordance with these requirements.

The non-audit services prohibited by that standard were not provided to

the Company.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’

use of the going concern basis of accounting in the preparation of the

financial statements is appropriate.

Our evaluation of the Directors’ assessment of the Company’s ability to

continue to adopt the going concern basis of accounting included:

• Evaluating the appropriateness of the Directors’ method of assessing

going concern in light of market volatility and the present uncertainties

in economic recovery by reviewing the information used by the

Directors in completing their assessment;

• Consideration of risk that could plausibly, individually and collectively,

result in liquidity issues, taking into account the Company’s current

and projected cash and liquid investment position;

• Assessing compliance with debt covenants, including forecast ability

to comply with them in the going concern period;

• Reviewing the forecasted cash flows that support the Directors’

assessment of going concern, challenging assumptions and

judgements made in the forecasts, and scenarios considered,

assessing them for reasonableness. In particular, we considered the

liquidity of the portfolios and the available cash resources relative to

the forecast expenditure which was assessed against the prior year for

reasonableness; and

• Checking the accuracy of historical forecasting by agreeing

to actual results.

Other Reports / Independent Auditor's Report

To the Members of AVI Global Trust plc

Based on the work we have performed, we have not identified any material

uncertainties relating to events or conditions that, individually or collectively,

may cast significant doubt on the Company’s ability to continue as a going

concern for a period of at least twelve months from when the financial

statements are authorised for issue.

In relation to the Company’s reporting on how it has applied the UK

Corporate Governance Code, we have nothing material to add or

draw attention to in relation to the Directors’ statement in the financial

statements about whether the Directors considered it appropriate to adopt

the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to

going concern are described in the relevant sections of this report.

Overview

Key audit matters 2023

Valuation and ownership

of quoted investments

Materiality £9.8m based on 1%

of Net assets

An overview of the scope of our audit

Our audit was scoped by obtaining an understanding of the Company and

its environment, including the Company’s system of internal control, and

assessing the risks of material misstatement in the financial statements.

We also addressed the risk of management override of internal controls,

including assessing whether there was evidence of bias by the Directors

that may have represented a risk of material misstatement.

Key audit matters

Key audit matters are those matters that, in our professional judgement,

were of most significance in our audit of the financial statements of the

current period and include the most significant assessed risks of material

misstatement (whether or not due to fraud) that we identified, including

those which had the greatest effect on: the overall audit strategy, the

allocation of resources in the audit, and directing the efforts of the

engagement team. These matters were addressed in the context of our

audit of the financial statements as a whole and in forming our opinion

thereon, and we do not provide a separate opinion on these matters.

AVI Global Trust plc / Annual Report 2023

Company ﬁnancial statements

2023

Materiality £9.8m

Basis for determining

materiality

1% of Net assets.

The above amount was based on

Net Asset Value (NAV) as at the planning

stage of the audit.

Rationale for the

benchmark applied

As an investment trust, the net asset

value is the key measure of performance

for users of the financial statements.

Performance materiality £7.3m

Basis for determining

performance materiality

75% of materiality

Rationale for the

percentage applied for

performance materiality

The level of performance materiality

applied was set after having considered a

number of factors including the expected

total value of likely misstatements.

Reporting threshold

We agreed with the Audit Committee that we would report to them all

individual audit differences in excess of £490k. We also agreed to report

differences below these thresholds that, in our view, warranted reporting

on qualitative grounds.

Our application of materiality

We apply the concept of materiality both in planning and performing our

audit and in evaluating the effect of misstatements. We consider materiality

to be the magnitude by which misstatements, including omissions, could

influence the economic decisions of reasonable users that are taken on the

basis of the financial statements.

In order to reduce to an appropriately low level the probability that any

misstatements exceed materiality, we use a lower materiality level,

performance materiality, to determine the extent of testing needed.

Importantly, misstatements below these levels will not necessarily be

evaluated as immaterial as we also take account of the nature of identified

misstatements, and the particular circumstances of their occurrence, when

evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the

financial statements as a whole and performance materiality as follows:

Key audit matter

How the scope of our audit addressed

the key audit matter

Valuation and ownership of

quoted investments

Refer to page 87 (Audit

Committee Report), page 70

(Accounting policy) and pages

79-84 (Financial disclosures)

The investment portfolio at the year-end comprised of

quoted investments amounting to £1,143 million.

We considered the valuation and ownership of quoted

investments to be the most significant audit area

as the quoted investments also represent the most

significant balance in the Financial Statements and

underpin a significant portion of the principal activity

of the entity.

Whilst we do not consider their valuation to be subject

to a significant degree of estimation or judgement,

there is a risk that the prices used for the listed equity

investments held by the Company are not reflective of

the fair value of those investments as at the year-end.

There is also a risk that errors made in the recording

of investment holdings result in the incorrect reflection

of investments owned by the Company.

For these reasons and the materiality of the balance

in relation to the financial statements as a whole, we

considered this to be a key audit matter.

We responded to this matter by testing the valuation

and ownership of the whole portfolio of quoted

investments. We performed the following procedures:

• Confirmed the year-end bid price was used by

agreeing to externally quoted prices;

• Assessed if there were contra indicators, such

as liquidity considerations, to suggest bid price is

not the most appropriate indication of fair value

by considering the realisation period for individual

holdings;

• Obtained direct confirmation of the number

of shares held per equity investment from the

custodian regarding all investments held at the

balance sheet date; and

• Recalculated the valuation by multiplying the

number of shares held per the statement obtained

from the custodian by the valuation per share.

Key observations:

Based on our procedures performed we did not

identify any matters to suggest the valuation or

ownership of the quoted equity investments was not

appropriate.

AVI Global Trust plc / Annual Report 2023

Other information

The Directors are responsible for the other information. The other

information comprises the information included in the Annual Report

other than the financial statements and our auditor’s report thereon. Our

opinion on the financial statements does not cover the other information

and, except to the extent otherwise explicitly stated in our report, we do

not express any form of assurance conclusion thereon. Our responsibility

is to read the other information and, in doing so, consider whether the

other information is materially inconsistent with the financial statements or

our knowledge obtained in the course of the audit, or otherwise appears

to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether

this gives rise to a material misstatement in the financial statements

themselves. If, based on the work we have performed, we conclude that

there is a material misstatement of this other information, we are required

to report that fact.

We have nothing to report in this regard.

Corporate governance statement

The Listing Rules require us to review the Directors’ statement in relation

to going concern, longer-term viability and that part of the Corporate

Governance Statement relating to the Company’s compliance with the

provisions of the UK Corporate Governance Code specified for our review.

Based on the work undertaken as part of our audit, we have concluded

that each of the following elements of the Corporate Governance

Statement is materially consistent with the financial statements or our

knowledge obtained during the audit.

Going

concern and

longer-term

viability

• The Directors’ statement with regards to

the appropriateness of adopting the going

concern basis of accounting and any material

uncertainties identified (page 63); and

• The Directors’ explanation as to their

assessment of the Company’s prospects, the

period this assessment covers and why the

period is appropriate (page 63).

Other Code

provisions

• Directors’ statement on fair, balanced and

understandable (page 64);

• Board’s confirmation that it has carried out a

robust assessment of the emerging and principal

risks (page 63);

• The section of the Annual Report that describes

the review of effectiveness of risk management

and internal control systems (page 88); and

• The section describing the work of the audit

committee (page 87).

Other Companies Act 2006 reporting

Based on the responsibilities described below and our work performed

during the course of the audit, we are required by the Companies Act

2006 and ISAs (UK) to report on certain opinions and matters as

described below.

Strategic

report and

Directors’

report

In our opinion, based on the work undertaken in the

course of the audit:

• the information given in the Strategic Report and

the Directors’ Report for the financial year for

which the financial statements are prepared is

consistent with the financial statements; and

• the Strategic Report and the Directors’ Report

have been prepared in accordance with

applicable legal requirements.

In the light of the knowledge and understanding of

the Company and its environment obtained in the

course of the audit, we have not identified material

misstatements in the Strategic Report or the

Directors’ Report.

Directors’

remuneration

In our opinion, the part of the Directors’ Remuneration

Report to be audited has been properly prepared in

accordance with the Companies Act 2006.

Matters on

which we

are required

to report by

exception

We have nothing to report in respect of the following

matters in relation to which the Companies Act 2006

requires us to report to you if, in our opinion:

• adequate accounting records have not been

kept, or returns adequate for our audit have not

been received from branches not visited by us; or

• the financial statements and the part of the

Directors’ Remuneration Report to be audited

are not in agreement with the accounting records

and returns; or

• certain disclosures of Directors’ remuneration

specified by law are not made; or

• we have not received all the information and

explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors’ Responsibilities, the

Directors are responsible for the preparation of the financial statements and

for being satisfied that they give a true and fair view, and for such internal

control as the Directors determine is necessary to enable the preparation

of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the Directors are responsible

for assessing the Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using

the going concern basis of accounting unless the Directors either intend

to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

Other Reports / Independent Auditor's Report continued

To the Members of AVI Global Trust plc

AVI Global Trust plc / Annual Report 2023

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the

financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not

a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities,

including fraud

Irregularities, including fraud, are instances of non-compliance with laws

and regulations. We design procedures in line with our responsibilities,

outlined above, to detect material misstatements in respect of irregularities,

including fraud. The extent to which our procedures are capable of

detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

• Our understanding of the Company and the industry in which it

operates;

• Discussion with management and those charged with governance;

and

• Obtaining an understanding of the Company’s policies and procedures

regarding compliance with laws and regulations.

We considered the significant laws and regulations to be Companies Act

2006, the FCA listing and DTR rules, the principles of the AIC Code of

Corporate Governance, industry practice represented by the AIC SORP,

the applicable accounting framework, and the Company’s qualification as

an Investment Trust under UK tax legislation, as any non-compliance of

this would lead to the Company losing various deductions and exemptions

from corporation tax.

Our procedures in respect of the above included:

• Agreement of the financial statement disclosures to underlying

supporting documentation;

• Enquiries of management and those charged with governance relating

to the existence of any non-compliance with laws and regulations;

• Reviewing minutes of meetings of those charged with governance

throughout the period for instances of non-compliance with laws and

regulations; and

• Reviewing the calculation in relation to Investment Trust compliance

to check that the Company was meeting its requirements to retain its

Investment Trust status.

Fraud

We assessed the susceptibility of the financial statements to material

misstatement including fraud.

Our risk assessment procedures included:

• Enquiry with management and those charged with governance

regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Company’s policies and procedures

relating to:

– Detecting and responding to the risks of fraud; and

– Internal controls established to mitigate risks related to fraud.

• Review of minutes of meetings of those charged with governance for

any known or suspected instances of fraud; and

• Discussion amongst the engagement team as to how and where fraud

might occur in the financial statements.

Based on our risk assessment, we considered the areas most susceptible

to be management override of controls.

Our procedures in respect of the above included:

• Recalculating investment management fees in total;

• Obtaining independent confirmation of bank balances;

• Review and consideration of the appropriateness of adjustments made

in the preparation of the financial statements; and

• To include an element of unpredictability, our audit procedures also

included consideration of the appropriateness of the allocation of

returns generated between revenue and capital, including identifying

and assessing the accounting treatment of relatively high yielding

dividends received.

We also communicated relevant identified laws and regulations and

potential fraud risks to all engagement team members who were all

deemed to have appropriate competence and capabilities and remained

alert to any indications of fraud or non-compliance with laws and

regulations throughout the audit.

Our audit procedures were designed to respond to risks of material

misstatement in the financial statements, recognising that the risk of not

detecting a material misstatement due to fraud is higher than the risk of

not detecting one resulting from error, as fraud may involve deliberate

concealment by, for example, forgery, misrepresentations or through

collusion. There are inherent limitations in the audit procedures performed

and the further removed non-compliance with laws and regulations is from

the events and transactions reflected in the financial statements, the less

likely we are to become aware of it.

A further description of our responsibilities is available on the

Financial Reporting Council’s website at: www.frc.org.uk/

auditorsresponsibilities. This description forms part of our auditor’s

report.

Use of our report

This report is made solely to the Company’s members, as a body, in

accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our

audit work has been undertaken so that we might state to the Company’s

members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we

do not accept or assume responsibility to anyone other than the Company

and the Company’s members as a body, for our audit work, for this report,

or for the opinions we have formed.

Chris Meyrick (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor

Edinburgh, UK

9 November 2023

BDO LLP is a limited liability partnership registered in England and Wales

(with registered number OC305127)

AVI Global Trust plc / Annual Report 2023

This Document is Important and Requires your Immediate Attention

If you are in any doubt about the action to take, you should consult your

stockbroker, bank manager, solicitor, accountant or other independent

professional adviser authorised under the Financial Services and Markets

Act 2000 (as amended) without delay. If you have sold or transferred all of

your Ordinary Shares in the capital of AVI Global Trust plc (the Company)

and, as a result, no longer hold any Ordinary Shares in the Company,

please send this document and the accompanying Form of Proxy as

soon as possible to the purchaser or transferee or to the person through

whom the sale or transfer was effected for transmission to the purchaser

or transferee.

Notice is hereby given that the One Hundred and Thirty Fourth Annual

General Meeting of AVI Global Trust plc will be held at 11 Cavendish

Square, London W1G 0AN at 11.00am on Wednesday, 20 December

2023 to consider the following business.

The resolutions numbered 1 to 12 are proposed as ordinary resolutions,

which must each receive more than 50% of the votes cast in order to

be passed. Resolutions numbered 13 to 15 are proposed as special

resolutions, which must each receive at least 75% of the votes cast in

order to be passed.

1. To receive and adopt the financial statements of the Company

for the financial year ended 30 September 2023 together with the

Strategic Report and the Reports of the Directors and Auditor.

2. To approve a final ordinary dividend of 2.3p per Ordinary Share.

3. To approve a special dividend of 0.2p per Ordinary Share.

4. To re-elect Anja Balfour as a Director of the Company.

5. To re-elect Neil Galloway as a Director of the Company.

6. To elect June Jessop as a Director of the Company.

7. To re-elect Graham Kitchen as a Director of the Company.

8. To re-elect Calum Thomson as a Director of the Company.

9. To re-appoint BDO LLP as the Company’s Auditor.

10. To authorise the Audit Committee to determine the Auditor’s

remuneration.

11. To approve the Directors’ Report on Remuneration Implementation

for the year ended 30 September 2023.

12. THAT the Directors of the Company be and are hereby generally

and unconditionally authorised in accordance with Section 551 of

the Companies Act 2006 (the Act) to exercise all of the powers of

the Company to allot Ordinary Shares in the capital of the Company

(Ordinary Shares) and to grant rights to subscribe for or to convert

any security into Ordinary Shares in the Company up to a maximum

of 152,370,114 Ordinary Shares provided that such authority shall

expire on the date which is 15 months after the date of the passing

of this resolution or, if earlier, at the conclusion of the next Annual

General Meeting of the Company, save that the Company may before

such expiry make offers or agreements which would or might require

Ordinary Shares to be allotted, or rights to be granted, after such

expiry and the Directors may allot Ordinary Shares, or grant such

rights, in pursuance of such offers or agreements as if the authority

conferred hereby had not expired; and all unexercised authorities

previously granted to the Directors to allot Ordinary Shares be and are

hereby revoked.

13. THAT, subject to the passing of resolution 12 above, the Directors of

the Company be and are hereby generally authorised and empowered

pursuant to Sections 570 and 573 of the Companies Act 2006

(the Act) to allot equity securities (as defined in Section 560 of the

Act) (including the grant of rights to subscribe for, or to convert any

securities into, Ordinary Shares in the capital of the Company (Ordinary

Shares) and the sale of Ordinary Shares held by the Company in

treasury) wholly for cash pursuant to any existing authority given in

accordance with Section 551 of the Act, as if Section 561 of the Act

did not apply to any such allotment, provided that this power shall be

limited to the allotment of equity securities:

(a) in connection with an offer of such securities by way of rights

to holders of Ordinary Shares on the register of members of the

Company on a fixed record date in proportion (as nearly as may

be practicable) to their respective holdings of Ordinary Shares but

subject to such exclusions or other arrangements as the Directors

may deem necessary or expedient in relation to treasury shares,

fractional entitlements or any legal or practical problems arising under

the laws of, or the requirements of, any territory or any regulatory or

governmental body or authority or stock exchange; and

(b) otherwise than pursuant to sub-paragraph (a) above, equating to a

maximum of 22,855,517 Ordinary Shares being approximately 5%

of the equity share capital in issue as at 9 November 2023, and

the authority hereby granted shall expire on the date which is 15

months after the date of the passing of this resolution or, if earlier,

the date of the next Annual General Meeting of the Company,

save that the Company may before such expiry make an offer

or agreement which would or might require equity securities to

be allotted after such expiry and the Directors may allot equity

securities and sell Treasury Shares in pursuance of such an offer

or agreement as if the power conferred hereby had not expired.

Shareholder Information / Notice of Annual General Meeting

AVI Global Trust plc / Annual Report 2023

14. THAT the Company be and is hereby generally and unconditionally

authorised for the purposes of Section 701 of the Companies Act

2006 (the Act) to make one or more market purchases (within the

meaning of Section 693(4) of the Act) of Ordinary Shares in the capital

of the Company (Ordinary Shares) either for cancellation or to hold

as Treasury Shares (within the meaning of Section 724 of the Act)

provided that:

(a) the maximum aggregate number of Ordinary Shares hereby

authorised to be purchased is 68,520,840;

(b) the Directors be authorised to determine at their discretion that any

Ordinary Shares purchased be cancelled or held by the Company

as Treasury Shares;

nominal value of that share (exclusive of associated expenses);

(d) the maximum price which may be paid for an Ordinary Share shall

be the higher of: (i) 5% above the average of the middle market

quotations of the Ordinary Shares (as derived from the Daily Official

List of the London Stock Exchange) for the five business days

immediately preceding the date on which the relevant share is

contracted to be purchased (exclusive of associated expenses);

and (ii) the higher of the price of the last independent trade and

the highest current independent bid for an Ordinary Share of the

Company on the London Stock Exchange; and

(e) unless previously varied, revoked or renewed, the authority

hereby conferred shall expire on the date which is 15 months

after the date of the passing of this resolution or, if earlier, the

date of the next Annual General Meeting of the Company save

that the Company may prior to such expiry enter into a contract

or arrangement to purchase Ordinary Shares under this authority

which will or may be completed or executed wholly or partly after

the expiry of this authority and may make a purchase of Ordinary

Shares pursuant to any such contract or arrangement as if the

authority hereby conferred had not expired.

15. THAT a general meeting other than an Annual General Meeting may

be called on not less than 14 clear days’ notice.

By Order of the Board

Link Company Matters Limited

Corporate Secretary

Registered Office:

Link Company Matters Limited

6th Floor

65 Gresham Street

London

EC2V 7NQ

9 November 2023

AVI Global Trust plc / Annual Report 2023

Notes

1. Attending the AGM in Person

If you wish to attend the AGM in person, you should sign the admission

card enclosed with this document and hand it to the Company’s Registrars

on arrival at the AGM.

2. Appointment of Proxy

Members are entitled to appoint a proxy to exercise all or any of their

rights to attend and to speak and vote on their behalf at the meeting.

A shareholder may appoint more than one proxy in relation to the AGM

provided that each proxy is appointed to exercise the rights attached

to a different share or shares held by that shareholder. A proxy need not

be a shareholder of the Company.

3. Appointment of Proxy

A proxy form which may be used to make such appointment and give

proxy instructions accompanies this notice. Where two or more valid

appointments of proxy are received in respect of the same share in relation

to the same meeting, the one which is last sent shall be treated as

replacing and revoking the other or others. If the Company is unable to

determine which is last sent, the one which is last received shall be so

treated. If the Company is unable to determine either which is last sent or

which is last received, none of such appointments shall be treated as valid

in respect of that share. The termination of the authority of a person to act

as proxy must be notified to the Company in writing.

To be valid, any proxy form or other instrument appointing a proxy

must be received by post or (during normal business hours only) by

hand at the Company’s Registrars, Equiniti Limited, Aspect House,

Spencer Road, Lancing, West Sussex BN99 6DA by 11.00am on Monday,

18 December 2023. In determining the time for delivery of proxies pursuant

to the Articles of Association, no account has been taken of any part of a

day that is not a working day. Alternatively, you may send any document

or information relating to proxies to the electronic address indicated on the

form of proxy.

The return of a completed proxy form, other such instrument or any

CREST Proxy Instruction (as described in paragraph 8 below) will not

prevent a shareholder attending the AGM and voting in person if he/she

wishes to do so.

If you require additional proxy forms, please contact the Registrar’s helpline

on +44 (0)371 384 2490. Lines are open 8.30am to 5.30pm Monday to

Friday (excluding public holidays in England and Wales).

Alternatively, you may, if you wish, register the appointment of a proxy

electronically by logging on to www.sharevote.co.uk. To use this service

you will need your Voting ID, Task ID and Shareholder Reference Number

printed on the accompanying Form of Proxy. Full details of the procedure

are given on the website.

To be valid, the appointment of a proxy electronically must be made by

11.00am on Monday, 18 December 2023. In determining the time for

electronic appointment of proxies pursuant to the Articles of Association,

no account has been taken of any part of a day that is not a working day.

4. Appointment of Proxy by Joint Shareholders

In the case of joint shareholders, where more than one of the joint

shareholders purports to appoint one or more proxies, only the purported

appointment submitted by the most senior holder will be accepted.

Seniority is determined by the order in which the names of the joint

shareholders appear in the Company’s register of members in respect

of the joint shareholding, with the first named being the most senior.

5. Nominated Persons

Any person to whom this notice is sent who is a person nominated

under Section 146 of the Companies Act 2006 to enjoy information rights

(a Nominated Person) may, under an agreement between him/her and the

shareholder by whom he/she was nominated, have a right to be appointed

(or to have someone else appointed) as a proxy for the AGM. If a Nominated

Person has no such proxy appointment right or does not wish to exercise it,

he/she may, under any such agreement, have a right to give instructions to

the shareholder as to the exercise of voting rights.

The statement of the rights of shareholders in relation to the appointment

of proxies does not apply to Nominated Persons as such rights can only

be exercised by registered shareholders of the Company.

6. Entitlement to Attend and Vote

To be entitled to attend and vote at the AGM (and for the purpose of the

determination by the Company of the votes they may cast), shareholders

must be registered in the Register of Members of the Company at 6.30pm

on Monday, 18 December 2023 (or, in the event of any adjournment,

6.30pm on the date which is two business days before the time of the

adjourned meeting). Changes to the Register of Members after the relevant

deadline shall be disregarded in determining the rights of any person to

attend and vote at the meeting.

7. Issued Share Capital and Total Voting Rights

As at 9 November 2023, the Company’s issued share capital consisted of

502,711,299 Ordinary Shares, carrying one vote each, of which 45,600,956

were in treasury. Therefore, the voting rights in the Company as at 9

November 2023 equate to a total of 457,110,343 votes. Treasury shares

represented 9.07% of the issued share capital as at 9 November 2023.

8. CREST Members

CREST members who wish to appoint a proxy or proxies through the

CREST electronic proxy appointment service may do so by using the

procedures described in the CREST Manual. CREST Personal Members

or other CREST sponsored members, and those CREST members who

have appointed a service provider(s), should refer to their CREST sponsor

or voting service provider(s), who will be able to take the appropriate action

on their behalf.

In order for a proxy appointment or instruction made using the CREST

service to be valid, the appropriate CREST message (a CREST Proxy

Instruction) must be properly authenticated in accordance with Euroclear

UK & Ireland Limited’s specifications, and must contain the information

required for such instruction, as described in the CREST Manual

(available via www.euroclear.com). The message, regardless of whether

it constitutes the appointment of a proxy or is an amendment to the

instruction given to a previously appointed proxy must, in order to be

valid, be transmitted so as to be received by the issuer’s agent (ID RA19)

by 11.00am on Monday, 18 December 2023. For this purpose, the time

of receipt will be taken to be the time (as determined by the time stamp

applied to the message by the CREST Application Host) from which the

issuer’s agent is able to retrieve the message by enquiry to CREST in the

manner prescribed by CREST. After this time any change of instructions

to proxies appointed through CREST should be communicated to the

appointee through other means.

Shareholder Information / Notice of Annual General Meeting continued

AVI Global Trust plc / Annual Report 2023

100

CREST members and, where applicable, their CREST sponsors, or voting

service providers should note that Euroclear UK & Ireland Limited does not

make available special procedures in CREST for any particular message.

Normal system timings and limitations will, therefore, apply in relation to the

input of CREST Proxy Instructions. It is the responsibility of the CREST

member concerned to take (or, if the CREST member is a CREST personal

member, or sponsored member, or has appointed a voting service provider,

to procure that his CREST sponsor or voting service provider(s) take(s)) such

action as shall be necessary to ensure that a message is transmitted by

means of the CREST system by any particular time. In this connection,

CREST members and, where applicable, their CREST sponsors or voting

system providers are referred, in particular, to those sections of the CREST

Manual concerning practical limitations of the CREST system and timings.

The Company may treat as invalid a CREST Proxy Instruction in the

circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities

Regulations 2001.

You may not use any electronic address provided either in this Notice

of Meeting or any related documents (including the Form of Proxy) to

communicate with the Company for any purposes other than those

expressly stated.

9. Proxymity

If you are an institutional investor you may be able to appoint a proxy

electronically via the Proxymity platform, a process which has been agreed

by the Company and approved by the Registrar. For further information

regarding Proxymity, please go to www.proxymity.io. Your proxy must

be lodged by 11.00am on Monday, 18 December 2023 in order to be

considered valid. Before you can appoint a proxy via this process you will

need to have agreed to Proxymity’s associated terms and conditions. It is

important that you read these carefully, as you will be bound by them and

they will govern the electronic appointment of your proxy.

10. Corporate Members

Any corporation which is a member can appoint one or more corporate

representatives who may exercise on its behalf all of its powers as a

member provided that they do not do so in relation to the same shares.

To be able to attend and vote at the meeting, corporate representatives

will be required to produce, prior to their entry to the meeting, evidence

satisfactory to the Company of their appointment.

11. Rights to Publish Statements under Section 527 of the

Companies Act 2006

Under Section 527 of the Companies Act 2006, members meeting the

threshold requirements set out in that section have the right to require

the Company to publish on a website a statement setting out any matter

relating to:

(i) the audit of the Company’s financial statements (including the Auditor’s

Report and the conduct of the audit) that are to be laid before the AGM; or

(ii) any circumstance connected with an Auditor of the Company ceasing

to hold office since the previous meeting at which annual financial

statements and reports were laid in accordance with Section 437

of the Companies Act 2006.

The Company may not require the shareholders requesting any such

website publication to pay its expenses in complying with Sections 527 or

528 of the Companies Act 2006. Where the Company is required to place

a statement on a website under Section 527 of the Companies Act 2006,

it must forward the statement to the Company’s Auditor not later than the

time when it makes the statement available on the website. The business

which may be dealt with at the AGM includes any statement that the

Company has been required under Section 527 of the Companies Act

2006 to publish on a website.

12. Questions and Answers

Any member attending the meeting has the right to ask questions.

The Company must cause to be answered any such question relating

to the business being dealt with at the meeting but no such answer need

be given if (a) to do so would interfere unduly with the preparation for

the meeting or involve the disclosure of confidential information, (b) the

answer has already been given on a website in the form of an answer

to a question, or (c) it is undesirable in the interests of the Company

or the good order of the meeting that the question be answered.

However, where appropriate, the Chairman may offer to provide an answer

to a question after the conclusion of the AGM.

If you are unable to attend the AGM in person and 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 agm@aviglobal.co.uk or by post to AVI Global Trust PLC,

Link Company Matters Limited, 6th Floor, 65 Gresham Street,

London, EC2V 7NQ.

13. Information on the Company’s Website

In accordance with Section 311A of the Companies Act 2006, the contents

of this notice of meeting and, if applicable, any members’ statements,

members’ resolutions or members’ matters of business received by the

Company after the date of this notice will be available on the Company’s

website www.aviglobal.co.uk.

14. Display Documents

None of the Directors has a contract of service with the Company.

Copies of the Letters of Appointment of the Directors will be available for

inspection at the registered office of the Company during usual business

hours on any weekday (except weekends and public holidays) until the

date of the meeting and at the place of the meeting for a period of

15 minutes prior to and during the meeting.

15. Electronic Address

Any electronic address provided either in this notice or in any related

documents (including the Form of Proxy) may not be used to communicate

with the Company for any purposes other than those expressly stated.

AVI Global Trust plc / Annual Report 2023

101

Dividends

Shareholders who wish to have dividends paid directly into a bank

account rather than by cheque to their registered address can complete

a mandate form for the purpose. Mandate forms may be obtained

from Equiniti Limited, Aspect House, Spencer Road, Lancing,

West Sussex BN99 6DA on request or downloaded from Equiniti’s website

www.shareview.com. The Company operates the BACS system for the

payment of dividends. Where dividends are paid directly into shareholders’

bank accounts, dividend tax vouchers are sent to shareholders’ registered

addresses.

Share Prices

The Company’s Ordinary Shares are listed on the London Stock

Exchange under ‘Investment Trusts’. Prices are published daily in

The Financial Times, The Times, The Daily Telegraph, The Scotsman

and The Evening Standard.

Change of Address

Communications with shareholders are mailed to the last address held

on the share register. Any change or amendment should be notiﬁed to

Equiniti Limited at the address given above, under the signature of the

registered holder.

Daily Net Asset Value

The net asset value of the Company’s shares can be obtained by

contacting Customer Services on 0845 850 0181 or via the website:

www.aviglobal.co.uk.

Provisional Financial Calendar 2024/2023

20 December 2023 Annual General Meeting

4 January 2024 Final and special paid on Ordinary Shares

May 2024 Announcement of half year results

June 2024 Interim dividend paid on Ordinary Shares

November 2024 Announcement of annual results

November 2024 Posting of Annual Report

December 2024 Annual General Meeting

Shareholder Information / Shareholder Information

AVI Global Trust plc / Annual Report 2023

102

AIFM

The AIFM, or Alternative Investment Fund Manager, is Asset Value Investors, which manages the portfolio on behalf of AGT shareholders. The current

approach to investment used by Asset Value Investors was adopted in June 1985.

NAV total return since inception of strategy in June 1985 (annualised)

30 September

2023

30 September

2022

Closing NAV per share (p) 226.77 199.76 a

Dividends paid out (p) 45.50 42.20 b

Benefits from re-investing dividends (p) 117.35 96.09 c

Adjusted NAV per share (p) 389.61 338.05 d = a + b + c

Opening NAV per share (p)* – June 1985 5.94 5.94 e

Annualised NAV total return (%) 11.5% 11.4% ((d/e) ^ (1/38.25)) - 1

Alternative Performance Measure (APM)

An APM is a numerical measure of the Company’s current, historical or future financial performance, financial position or cash flows, other than a financial

measure defined or specified in the applicable financial framework. In selecting these Alternative Performance Measures, the Directors considered the

key objectives and expectations of typical investors in an investment trust such as the Company.

Comparator Benchmark

As described in the Chairman’s Statement the Company’s Comparator Benchmark is the MSCI All Country World Total Return Index, but performance is

also reported compared with the previous comparator benchmark, the MSCI All Country World ex-US Total Return Index, expressed in Sterling terms. The

benchmark is an index which measures the performance of global equity markets, both developed and emerging. The weighting of index constituents is

based on their market capitalisation.

Dividends paid by index constituents are assumed to be reinvested in the relevant securities at the prevailing market price. The Investment Manager’s

investment decisions are not influenced by whether a particular company’s shares are, or are not, included in the benchmark. The benchmark is used

only as a yard stick to compare investment performance.

Cost

The book cost of each investment is the total acquisition value, including transaction costs, less the value of any disposals or capitalised distributions

allocated on a weighted average cost basis.

Currency

GBP EUR USD SEK JPY NOK CHF HKD BRL RON INR CAD

Pounds

Sterling

Euro US Dollar Swedish

Krona

Japanese

Yen

Norwegian

Krone

Swiss Franc Hong Kong

Dollar

Brazilian

Real

Romanian

Lei

Indian

Rupee

Canadian

Dollar

Discount/Premium (APM)

If the share price is lower than the NAV per share, it is said to be trading at a discount. The size of the Company’s discount is calculated by subtracting

the share price of 202.0p (2022: 179.0p) from the NAV per share (with debt at fair value) of 226.8p (2022: 199.8p) and is usually expressed as a

percentage of the NAV per share, 10.9% (2022: 10.4%). If the share price is higher than the NAV per share, this situation is called a premium.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)

A proxy for the cash flow generated by a business – it is most commonly used to assess businesses that do not (yet) generate operating or

shareholder profits.

Gearing (APM)

Gearing refers to the ratio of the Company’s debt to its equity capital. The Company may borrow money to invest in additional investments for its portfolio.

If the Company’s assets grow, the shareholders’ assets grow proportionately more because the debt remains the same. But if the value of the Company’s

assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets.

Using debt at par value, the gross gearing of 13.7% (2022: 12.7%) represents borrowings of £141,549,000 (2022: £122,893,000) expressed as a

percentage of shareholders’ funds of £1,031,018,000 (2022: £969,508,000). Using debt at fair value, gross gearing is 11.9% (2022: 11.3%).

Net gearing, which accounts for cash balances and uses debt at par value, is 11.0% (2022: 1.7%). Using debt at fair value, net gearing is 7.4% (2022: 0.5%).

Shareholder Information / Glossary

* The opening NAV per share is restated for the share split.

AVI Global Trust plc / Annual Report 2023

103

Gearing (APM) continued

The gross and net gearing reconciliation calculations are provided below:

Gross Gearing (Debt at Par) 2023 2022

£’000 £’000

Debt -141,549 -122,893 a

NAV 1,031,018 969,508 b

Gross Gearing 13.7% 12.7% =a/b

Net Gearing (Debt at Par) 2023 2022

Assets (inc. Cash) 49,905 114,850 c

Liabilities -3,398 -8,880 d

Net -95,042 -16,923 e=a+c+d

Net Gearing 9.2% 1.7% =e/b

Gross Gearing (Debt at Fair) 2023 2022

Debt -124,487 -110,649 a

NAV 1,048,080 981,752 b

Gross Gearing 11.9% 11.3% =a/b

Net Gearing (Debt at Fair) 2023 2022

Assets (inc. Cash) 49,905 114,850 c

Liabilities -3,398 -8,880 d

Net -77,980 -4,679 e=a+c+d

Net Gearing 7.4% 0.5% =e/b

The current values of the Loan Notes and revolving credit facility consist of the following:

30 September 2023 30 September 2022

JPY JPY

2032 2033 revolving revolving

2036 2036 2037 JPY 8bn JPY 4.5bn credit 2036 2036 2037 credit 2032

GBP loan EUR loan EUR loan loan loan facility Total GBP loan EUR loan EUR loan facility JPY loan Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Value of issue 30,000 22,962 17,526 49,516 24,802 – 144,806 30,000 22,962 17,526 – 49,516 120,004

Unamortised issue

costs (80) (61) (97) (162) (48) – (448) (87) (66) (105) – (179) (437)

Exchange

movement – 3,059 (179) (5,593) (96) – (2,809) – 3,339 9 – (22) 3,326

Amortised book cost 29,920 25,960 17,250 43,761 24,658 – 141,549 29,913 26,235 17,430 – 49,315 122,893

Fair value 25,051 22,158 13,936 40,584 22,757 – 124,487 25,127 22,668 14,214 – 48,640 110,649

Redemption costs 3,818 4,802 3,356 (1,007) 3,534 – 14,502 4,899 7,144 5,016 – (2,124) 14,935

Redemption value 28,869 26,960 17,292 39,577 26,291 – 138,989 30,026 29,812 19,230 – 46,516 125,584

The fair values of the Loan Notes are calculated using net present values of future cash flows and the yields, taking account of exchange rates.

The redemption value includes the penalty payable on early redemption.

The impact of holding the Loan Notes at fair value would be to increase the Company’s net assets with debt at fair value by £17,062,000 (2022: increase

by £12,244,000).

The fair value of the Company’s Loan Notes at the year-end was £124,487,000 (2022: £110,649,000). The interest rates of the non-current liabilities

(Loan Notes) are fixed. A 1% increase in market interest rates would be expected to decrease the fair value of the non-current liabilities, and increase net

assets with debt at fair value, by approximately -£10.8m (2022: -£10.3m), all other factors being equal. A 1% decrease would increase the fair value of them

non-current liabilities, and decrease net assets with debt at fair value, by £12.0m (2022: £11.6m). The Loan Notes are held in the NAV at amortised cost.

Shareholder Information / Glossary continued

AVI Global Trust plc / Annual Report 2023

104

Internal Rate of Return (IRR)

The IRR is the annualised rate of return earned by an investment, adjusted for dividends, purchases and sales, since the holding was first purchased.

Net Assets

Net assets are the total value of all the Company’s assets less all liabilities. Net assets is equivalent to shareholders’ funds.

Net Asset Value (NAV) (APM)

The NAV is shareholders’ funds expressed as an amount per individual share. Shareholders’ funds are the total value of all the Company’s assets, at

current market value, having deducted all liabilities including debt at amortised cost revalued for exchange rate movements. The total NAV per share

is calculated by dividing shareholders’ funds of £1,031,018,000 (2022: £969,508,000) by the number of Ordinary Shares in issue excluding Treasury

Shares of 462,173,682 (2022: 491,451,568*) at the year-end.

Net Asset Value (debt at fair value) (APM)

The adjusted NAV per share (debt at fair value) incorporates the debt at fair value instead of at amortised cost, increasing the NAV by £17,062,000

(2022: £12,244,000 increase). This is calculated by the original NAV of £1,031,018,000 (2022: £969,508,000) less the debt at amortised cost

£141,549,000 (2022: £122,893,000), adding back the debt at fair value £124,487,000 (2022: £110,649,000). The adjusted NAV (debt at fair value)

is £1,048,080,000 (2022: £957,264,000) divided by the number of Ordinary Shares in issue excluding Treasury Shares of 462,173,682 (2022:

491,451,568*) at the year-end provides the adjusted NAV per share (debt at fair value) provides the adjusted NAV per share (debt at fair value) of

226.77p (2022: 199.76p).

Ongoing Charges Ratio / Expense Ratio (APM)

The Company’s Ongoing Charges Ratio is the sum of: (a) its Expense Ratio; (b) Costs of gearing; and (c) transaction costs. For a detailed discussion

of the Expense Ratio, please see the discussion of Key Performance Indicators on page 12 of the Annual Report.

The Company’s Expense Ratio is its annualised expenses (excluding finance costs and certain non-recurring items) of £8,655,000 (2022: £9,577,000)

(being investment management fees of £6,891,000 (2022: £7,650,000) and other expenses of £1,782,000 (2022: £2,594,000) less non-recurring

expenses of £18,000 (2022: £667,000)) expressed as a percentage of the average month-end net assets of £1,010,898,000 (2022: £1,089,555,000)

during the year as disclosed to the London Stock Exchange.

A reconciliation of the Ongoing Charges to the Expense Ratio is provided below:

30 September 30 September

2023 2022

Total Expense Ratio a 0.86% 0.88%

Cost of Gearing b 0.34% 0.34%

Transaction Costs c 0.07% 0.07%

Total = a + b + c 1.27% 1.29%

% of investee Company

AGT’s economic exposure to each investee company, as estimated by AVI.

Return on Investment (ROI)

The ROI is the total profits earned to date on an investment divided by the total cost of the investment.

Revenue and Capital Earnings per Share (APM)

Revenue earnings per share is calculated by dividing revenue profit after tax for the year of £20,041,000 (2022: £16,302,000) by the weighted average of

Ordinary Shares (excluding shares in issue) during the year 478,739,622 (2022: 503,274,200). Capital earnings per share is calculated by dividing capital

profit for the year of £114,096,000 (2022: loss of £127,328,000) by the weighted average of Ordinary Shares (excluding shares in issue) during the year

478,739,622 (2022: 503,274,200).

Shares Bought Back

The Company may repurchase its own shares, reducing the freely traded shares ranking for dividends and enhancing returns and earnings per Ordinary

Share to the remaining shareholders. When the Company repurchases its shares, it does so at a total cost below the prevailing NAV per share.

The estimated percentage added to NAV per share from buybacks of 0.6% (2022: 0.4%) is derived from the repurchase of shares in the market at a

discount to the prevailing NAV at the point of repurchase. The shares were bought back at a weighted average discount of 10.1% (2022: 10.3%).

30 September 30 September

2023 2022

Weighted average discount of buybacks 10.1% 10.3% a

Percentage of shares bought back 6.0% 3.7% b

NAV accretion from buyback 0.6% 0.4% (a * b) / (1 – b)

Total Assets

Total assets include investments, cash, current assets and all other assets. An asset is an economic resource, being anything tangible or intangible that

can be owned or controlled to produce positive economic value. The total assets less all liabilities is equivalent to total shareholders’ funds.

Total Return (APM)

Total return statistics enable the investor to make performance comparisons between investment trusts with different dividend policies. The total return

measures the combined effect of any dividends paid, together with the rise or fall in the share price or NAV. This is calculated by the movement in the

NAV or share price plus dividend income reinvested by the Company at the prevailing NAV or share price.

* Restated for share split.

AVI Global Trust plc / Annual Report 2023

105

NAV Total Return (APM)

NAV total return is calculated by assuming that dividends paid out are re-invested into the NAV on the ex-dividend date. This is accounted for in the

“benefits from re-investing dividends” line. The NAV used here includes debt marked to fair value and is inclusive of accumulated income.

Where an “annualised” figure is quoted, this means that the performance figure quoted is not a standard one-year figure, and therefore has been

converted into an annual return figure in order to ease comparability. For example, if AGT’s NAV increased by +100% over a ten-year period, this would

become an annualised NAV return of 7.2%.

NAV total return over 1 year

30 September 30 September

Page 2023 2022

Closing NAV per share (p) 226.77 199.76 a

Dividends paid out (p) 75 3.30 3.30 b

Benefits from re-investing dividends (p) 0.19 -0.23 c

Adjusted NAV per share (p) 230.26 202.83 d = a+b+c

Opening NAV per share (p)* 199.76 218.76 e

NAV total return (%) 15.3% -7.3% = (d/e)-1

NAV total return over 10 years (annualised)

Closing NAV per share (p) 226.77 199.76 a

Dividends paid out (p) 28.94 28.24 b

Benefits from re-investing dividends (p) 18.34 15.69 c

Adjusted NAV per share (p) 274.05 243.69 d = a + b + c

Opening NAV per share (p)* 109.92 99.64 e

Annualised NAV total return (%) 9.6% 9.4% ((d/e) ^ (1/10)) - 1

Share Price Total Return (APM)

Share price total return is calculated by assuming that dividends paid out are re-invested into new shares on the ex-dividend date. This is accounted for

in the “benefits from re-investing dividends” line.

Share price total return over 1 year

30 September 30 September

Page 2023 2022

Closing NAV per share (p) 202.00 179.00 a

Dividends paid out (p) 75 3.30 3.30 b

Benefits from re-investing dividends (p) 0.10 -0.27 c

Adjusted price per share (p) 205.40 182.03 d = a+b+c

Opening price per share (p) 179.00 204.00 e

Share price total return (%) 14.8% -10.8% = (d/e)-1

Treasury Share

When a share is bought back it may be cancelled immediately or held (at zero value) as a Treasury Share. Shares that are held in treasury can be

reissued for cash at minimal cost. The Company will only reissue shares from treasury at a price at or above the prevailing NAV per share.

Total Return Swap

A total return swap is a financial contract between two parties, whereby each party agrees to “swap” a series of cashflows. On the long positions, AGT

receives income but pays floating rate interest and capital movement. Capital movement is based on the notional value (the equity exposure of the

underlying security). On short positions, AGT pays income and receives the floating rate interest and capital movement.

Weight

Weight is defined as being each position’s value as a percentage of net assets.

Weighted-average Discount (APM)

The weighted-average discount is calculated as being the sum of the products of each holding’s weight in AGT’s portfolio times its discount.

AVI calculates an estimated sum-of-the-parts NAV per share for each holding in AGT’s portfolio. This NAV is compared with the share price of the holding

in order to calculate a discount.

Weighted Average Shares (APM)

The weighted average shares outstanding is calculated by multiplying the outstanding number of shares after each share issue and buy back of shares

during the year with the time weighted portion. The total of the weighted average of shares in issue excluding Treasury shares during the year is 478,739,622.

* The opening NAV per share is restated for the share split.

AVI Global Trust plc / Annual Report 2023

106

Shareholder Information / Glossary continued

Directors

Graham Kitchen (Chairman)

Anja Balfour

Neil Galloway

June Jessop

Calum Thomson

Secretary

Link Company Matters Limited

6th Floor

65 Gresham Street

London

EC2V 7NQ

Tel: 0333 300 1950

Registered Office

Link Company Matters Limited

6th Floor

65 Gresham Street

London

EC2V 7NQ

Registered in England & Wales

No. 28203

Investment Manager and AIFM

Asset Value Investors Limited

2 Cavendish Square

London W1G 0PU

Registrar and Transfer Office

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex BN99 6DA

Registrar’s Shareholder Helpline

Tel. 0371 384 2490

Lines are open 8.30am to 5.30pm,

Monday

to Friday.

Registrar’s Broker Helpline

Tel. 0906 559 6025

Calls to this number cost £1 per minute

from a BT landline, other providers’ costs

may vary. Lines are open 8.30am to 5.30pm,

Monday to Friday.

Company Administrator

Link Alternative Fund

Administrators Limited

Broadwalk House

Southernhay West

Exeter

EX1 1TS

Corporate Broker

Jefferies International Limited

100 Bishopsgate

London EC2N 4JL

Auditor

BDO LLP

55 Baker Street

London

W1U 7EU

Depositary

J.P. Morgan Europe Limited

25 Bank Street

London E14 5JP

Banker and Custodian

JPMorgan Chase Bank NA

125 London Wall

London EC2Y 5AJ

Design and Production

www.carrkamasa.co.uk

Shareholder Information / Company Information

HOW TO INVEST

AGT is a closed-ended investment trust with

shares listed on the London Stock Exchange

and part of the FTSE 250 index. Shares

in AGT can be bought directly on the London

Stock Exchange or through investment

platforms.

For more information visit: www.aviglobal.co.uk

AVI Global Trust plc / Annual Report 2023

107