MIGO Opportunities Trust Plc - Semi-Annual Report

MIGO Opportunities Trust Plc – Semi-Annual Report

PR News Cable

LONDON, UK, December 19

MIGO Opportunities Trust plc

Semi-annual to October 31, 2023

MIGO Opportunities Trust plc (the “Company” or “MIGO”) published its half-yearly report for the six months ended October 31, 2023.

The half-yearly report and other data will be available through www. migoplc. co. uk

A copy of the semi-annual report will also be sent to the National Storage Mechanism and will soon be available for inspection in https://data. fca. org. uk/#/nsm/nationalstoragemechanism

Consultations:

Frostrow Capital LLP

Secretary of the Company

DDI: +44 (0)203 709 8732

Email: info@frostrow. com

Financial highlights

Six months ended

Year Ended

31 October 2023

30 April 2023

% change

Net Asset Value (“NAV”) consistent with the stock

319. 2p

328. 6p

(2,9)%

Share Price

310. 5p

318. 5p

(2.5)%

Value of the share over the cost of net assets consistent with the stock

(2,7)%

(3,1)%

Total Net Assets

£74. 0 million

£79. 8 million

(7.4)%

Asset Value Volatility*

4,1%

8,2%

Gear*

–

Ongoing Costs*

1.6%

1.4%

* Alternative Performance Measure (“APM”), see Glossary.

For commentary in respect of the above figures and Company’s performance during the year please see the Chairman’s Statement and the Manager’s Report.

Full functionality back to October 31, 2023

6 months

1 year

5 years

Net Assets (Adjusted Dividend)*

(1.9)

(1.2)

19. 3

Share Value (Adjusted Dividend)*

(1.6)

(3. 6)

15. 8

SONIA plus 2%

3. 5

6. 4

17.5

*Alternative measure, see Glossary.

Source: Morning Star

Investment objective

The objective of MIGO Opportunities Trust plc (the “Company” or “MIGO”) is to outperform SONIA plus 2% (the “Benchmark”) over the long term, primarily by taking advantage of inefficiencies in closed-end fund pricing (SONIA being the Sterling Overnight Index Average, the Bank of England’s GBP risk-free reference rate for use in GBP derivatives and applicable currency contracts). This objective is intended to reflect the Company’s objective of offering shareholders a higher long-term return than they would discharge. by cash on deposit.

The Benchmark is a target only and should not be treated as a guarantee of the performance of the Company or its portfolio.

Investment Policy

The Company invests in closed budgets traded on the main market of the London Stock Exchange, but has the flexibility to invest in investment budgets indexed or traded on other identified inventory exchanges, in closed non-indexed budgets (including, but not limited to, , (budget traded on AIM) and open investment budget. The budget in which the Company invests would possibly include all types of investment trusts, companies and budgets established locally or abroad. The Company has the option to invest in any class of securities issued through the investment budget, including, but not limited to, stocks, debt securities, warrants or other convertible securities. In addition, the Company may invest in other securities, such as debt securities other than the investment budget, as deemed appropriate to produce the desired result. shareholder returns.

The Company is subject to restrictions on the amount of budget it holds.

The Company invests in index closed-end mutual funds that have declared investment policies of investing no more than 15% of their gross assets in other indexed closed-end investment budgets. However, the Company would likely invest up to 10%, in aggregate, of the price of its gross assets at the time of acquisition in closed investment budgets that do not have such a stated investment policy.

In addition, the Company will invest more than 25% of the price of its gross assets at the time of acquisition in open-ended funds.

There are no prescriptive limits to asset allocation in terms of asset elegance or geography.

There is no restriction on the duration of hedging contracts, as long as their cumulative price does not exceed 20% of the portfolio’s gross assets at the time of closing.

The Board permits borrowings of up to 20% of the Company’s net asset value (measured at the time new borrowings are incurred).

The Company’s investment objective would possibly lead, from time to time, to the holding of a significant amount of money or money equivalents.

Chairman’s Statement

Introduction

In the six months ended October 31, 2023, money markets around the world continued to be impacted by emerging interest rates aimed at returning inflation to central banks’ target levels. These higher rates and fears that they could hurt earnings expansion and generate credit defaults have weighed heavily on inventory costs around the world, with the notable exception of some highly skilled U. S. inventories that are seen as beneficiaries of emerging artificial intelligence technologies.

Domestically, UK consumers are facing higher interest rates and a cost-of-living crisis exacerbated by high inflation and energy prices. As those consumers are ultimately driving giant demand for investment products of all kinds in the UK, we have seen significant relief in investment budget demand over the period. Along with other demand effects, such as the consolidation of the wealth control industry and the increasing use of global benchmarks, industry-wide net asset price discounts have been boosted to noted degrees. since the global currency crisis.

Despite those trends and a slightly lower percentage price, MIGO continued to trade with a sharp drawdown, as our investment manager’s normal buybacks, monetary equilibrium, and purchase pricing technique with significant reductions maintained investor confidence.

Investment Manager, Head Office, Custodian & Custodian

In addition to market developments, the year 2023 was marked by the search for a new AIFM and investment manager for MIGO following the announcement earlier this year that our portfolio manager, Nick Greenwood, had to leave Premier Miton Investors (“PMI”).

Between March and June, MIGO’s Board of Directors, after consulting with our attorneys and agents, conducted a comprehensive executive review, adding detailed shareholder involvement. Shareholder feedback made it clear that MIGO’s investors were looking for MIGO to adapt to their existing investment objective and policy, preferably with the investment team in place. Nearly a dozen potential investment control firms, ranging from giant multinational firms to small boutique managers, were vetted through a rigorous variety process. The result of this solution was a unanimous resolution through the Board to appoint Asset Value Investors Limited (“AVI”) as the Company’s long-term investment manager and investment manager, subject to regulatory approval, which was announced on July 27.

Since then, and as announced on 16 October, it has been agreed that Nick Greenwood would join AVI to co-manage MIGO along with Charlotte Cuthbertson, both of whom are well known to our longer-term investors as the Company’s lead portfolio managers for a number of years. AVI’s appointment commenced from close of business on Friday 15 December, concurrent with PMI completing its role as investment manager. Nick Greenwood joined AVI the following business day, Monday 18 December. Also, with effect from 18 December 2023, the registered office moved to the offices of Frostrow Capital LLP, our Company Secretary, Marketing and Administration Manager. The new address can be found at the end of this document.

The Council would like to thank Prime Minister Miton for his cooperation in this transition and for his hard work over the years.

We also look forward to working with AVI, an experienced investment that is accepted as true and a fund manager that makes an investment in the investment that is accepted as true with the industry, and the Board expects MIGO to take advantage of AVI’s deep industry expertise and also from the resources of assistant analysts. as well as their distribution and marketing channels. ” Over the past five years, AVI has added significant resources to its investment research team; this intensity of wisdom will be used to help MIGO’s portfolio managers. More information can be found at: www. assetvalueinvestors . com.

In addition to a new AIFM and an investment manager, MIGO also has a new custodian and custodian, JP Morgan Europe Limited and JP Morgan Chase Bank, respectively. AVI and its consumer budget have a well-established relationship with JP Morgan. We thank the BNYM Team for their performance over the years and for helping in the transition of the company’s business to JP Morgan. We look forward to working with the perfect team at JP Morgan who have helped ease the transition. “

Despite all the uncertainty of the past few months, it is encouraging to see that shareholders are satisfied with MIGO and look forward to further developments. As a result, thanks to the Board’s proactive strategy for refunds, our percentage value and reduction have been maintained. Pretty stable. I thank everyone for their patience.

Changes to the Board of Directors

As already stated in the Annual Report, the appointment of AVI as the new Investment Manager and Investment Manager means that Katya Thomson can no longer be considered independent within the meaning of AIC’s Corporate Governance Code, as she is also a member of the Board of Directors. The directors of some other investment accept as true that they are controlled through AVI. She had therefore made a resolution to step down from her duties as non-executive director and chair of the audit committee once a replacement could be found.

As a result, the Board has embarked on the search for a new independent non-executive director with the mandatory qualifications to succeed Katya as Chair of the Audit Committee. As previously announced on December 12, 2023, I am pleased to announce that the Directors have appointed Ms. Caroline Gulliver to join the Board of Directors and as the new Chair of the Audit Committee effective the close of business on December 29, 2023. Katya will step down from her duties on the same day, but will remain available to Caroline and the MIGO Board of Directors for as long as needed.

After graduating with a degree in Accounting from the University of Dundee in 1987, Caroline joined EY as a postgraduate fellow in Edinburgh where she spent a 25-year career, most recently as Chief Executive Officer in London, acting as lead auditor for investment corporations and open-ended firms. He has also worked on a large number of investments accepted as true with inventory transactions, adding the release of new funds, both domestic and foreign, as well as the reconstruction and merger of funds. Caroline left EY in September 2012 to pursue other interests, adding non-executive director roles. He has recently held 3 active appointments to the board of closed-end fund managers: JP Morgan Global Emerging Markets Income Trust plc, International Biotechnology Trust plc and abrdn European Logistics Income plc. He is a Fellow of the Institute of Chartered Accountants of Scotland (CA).

The Board warmly welcomes Caroline and looks forward to running with her. At the same time, we will miss Katya’s insights and wish her the best of luck for her future, thanking her for her many years of advocacy for MIGO.

Performance

For the six months ended October 31, 2023, the Company’s overall NAV consistent with percentage (adjusted for dividends) decreased 1. 9% and overall return consistent with percentage value (adjusted for dividends) decreased 1. 6%. By comparison, the Company’s benchmark index, the SONIA 2% British pound, generated an overall decline of 3. 5%.

A complete review of the points affecting the Company’s functionality during the era and developments in the portfolio can be found in the Investment Manager’s Opinion. We continue to believe that the existing environment is ideal for our investment manager’s price-oriented taste for locating hot new investments. Net cash at the end of the period was £6. 9m, or 9. 5% of net asset value, and it is in a position to deploy it when value opportunities arise.

Dividend

On 5 October 2023, a final dividend of 3. 0 pence consistent with the constant percentage for the year ended 30 April 2023 was paid to consistent percentage holders of record as of 8 September 2023.

The company’s number one goal remains to deliver shareholder returns through capital expansion in its investments and a 2% increase in SONIA’s long-term outperformance. Consequently, the Commission maintains its current policy of paying only mandatory dividends in order to maintain prestige. of an investment in the UK is accepted as true. Subject to investment rules, dividends and distributions will continue to be at the discretion of the Board of Directors from time to time.

Share Price, Share Issuances and Buybacks

MIGO’s constant percentage value decreased from 318. 5 pence to 310. 5 pence and constant percentages traded with a slight reduction in the cost of net assets of 2. 7% at the end of the same period, compared to trading at 3. 1 pence. % reduction in cost of net assets consistent with the percentage consistent at the end of the fiscal year consistent with the fiscal year ended April 30, 2023.

From May to October 2023, the Company undertook buybacks of 1,125,000 shares in order to manage the share price discount and protect liquidity in the market. This support for the shares was particularly important given the ongoing new manager search and wait for regulatory approval as well as weakness in the investment trust sector at that time. As at 31 October 2023, the Company had 23,172,797 (30 April 2023: 24,297,797) shares in issue. Since the period-end, a further 100,000 shares were bought back.

It is the policy of the Board to be proactive in managing the premium or reduction to the price consistent with percentage. The issuance of new percentage-consistent bonds at a premium over the net asset price consistent with percentages creates a price for existing holders of percentage-consistent and any issuance of percentage-consistent also improves the liquidity of the Company’s interests, controls the premium over the net asset price at which interest is quoted, and spreads prices across a broader capital base, thus cutting the current expenditure ratio. Share buybacks reduce surplus to consistent market percentages and correct imbalances between supply and demand. The board of directors, PMI as investment manager and the company’s broker were in normal contact in order to be able to temporarily react to any disproportionate premium or reduction. to which the Company’s consistent percentages were quoted. This is expected to continue with AVI as the new AIFM and investment manager.

At the Annual General Meeting (“AGM”) held on September 20, 2023, shareholders requested the Board of Directors to factor percentages up to a limit of 10% of the factored percentage capital, with cancellation of the pre-emptive subscription right, for a total of 2,354,779 percentages in total. At the Annual General Meeting, the General Meeting also obtained the authorization of the shareholders to repurchase up to 3,529,814 shares, representing 14. 99% of the percentage capital of the factor. These governments will expire at the next Annual General Meeting when the Board requests a renewed government.

Ongoing Rate Issues

Investors will be aware of the Current Charges (“OCF”) figure, which are the fees paid over a year set forth in the “Key Investor Information” (“KID”) document. The Board, our advisors, and many investment specialists have long considered this figure to be misleading, as it doubles the charge of making an investment in other investments. A significant portion of MIGO’s OCF (1. 29% of an overall OCF of 2. 81% according to the KID of 16 October 2023) is due to prices incurred through the underlying investments and does not constitute an additional charge to MIGO and is therefore not represented. in monetary highlights. Whether the actual underlying prices are presented in a single figure or in a tiered approach, many platforms and readers will raise them, and in an industry where low payout levels are often misunderstood as the simplest way to assess how prices are priced. is generated, this can become a problem.

The Board of MIGO, together with many other industry participants, has lobbied the Association of Investment Companies and HM Treasury to intervene to confirm that costs associated with listed investment companies should be excluded from the ‘single figure’ OCF across all retail product and service categories. This, together with amended legislation, should show companies like ours as competitive as they really are. The first results of this lobbying activity have been in the news recently, as responsibility for this issue has been passed to the FCA. We await clarity and a common sense solution.

Perspectives

2023 was a year of significant renewal for MIGO and for accepted investments in the industry. The cuts in accepted investments in the sector have widened significantly, presenting many interesting investment opportunities for the Company, both in the sectors that we track and have been making an investment for a long time and in sectors that have traditionally traded at discounts adjusted or indeed premiums to the net asset price, where strict ratings have in the past prevented our investment. With a new AIFM and investment manager in place, we can MIGO is positioned to take on whatever 2024 brings.

As a result, the portfolio is well-placed for long-term net asset value expansion within the portfolio corporations and for stricter industry-wide cuts.

The Board of Directors is positive about MIGO’s long-term and thanks shareholders for their continued support.

Richard Davidson

President

December 19, 2023

Investment Manager’s Report

for the six months ended October 31, 2023

Performance

During the six months to 31 October 2023, our net asset value fell from 328.25p to 319.13p. This represents a fall of 1.86% in capital terms once the payment of a 3p dividend is taken into account. In comparison, the Numis All-Share Index* declined 11.7% in capital terms. Our shares also declined 2.51% and ended the half year trading on a 2.7% discount

* The entire universe of investment corporations as explained through Numis Securities Research, whether equity and election asset investment corporations.

The era we are looking at is one of the most challenging in recent years for the mutual fund industry. He was facing a very severe storm. This reflects a combination of four factors: expectations of emerging interest rates in the UK, knee-jerk promotion in the face of low share prices, immediate consolidation in the wealth control industry and, most importantly, the method used to disclose prices that causes companies to be shut down. The final budget seems expensive compared to its open peers. Given those torrid situations where the FTSE All Share Closed End Index fell as much as 8. 47%, our portfolio held up well. This is partly due to the money balances we had at the beginning of the era.

Expectations as to where UK interest rates would peak steadily rose. At one point, forecasts approached 6.5%. During the summer it was possible to buy a two-year gilt on a redemption yield of 5.4%. Bearing in mind the vast majority of this return is effectively tax free for many investors, the ability to get a decent income from conventional sources undermined demand for many trusts. These were created to find a solution to the lack of income at a time when deposit rates were close to zero. In the new environment they needed to yield a premium to gilts which meant that share prices needed to fall. The sharp declines reflected a lack of demand rather than concerns about the quality of these trusts’ underlying investments. This provided an arbitrage opportunity given that in many cases demand for what the trusts owned remained steady. It was simply the structure in which they were held which was out of favour. This is certainly true for our existing position in Aquila European Renewables which has invested in solar assets in Iberia and wind farms in Scandinavia. It is in the alternatives sector where the bulk of our research efforts are currently focused seeking portfolios which have the scope to grow both net asset value and dividends.

In recent decades, the wealth control industry has a primary owner of trusts. Investec’s recent merger with Rathbones highlights the extent of consolidation over the last decade, from a slew of small, independent personal agents to a small number of giant national chains. Given that the newly merged organization will have £100 billion in assets under control, it is difficult to see how those organizations will be able to use the closed budget in the long term. To turn things around, investors deserve to need potential investments to make up at least 1% of their portfolio. In the case of a £100bn fund, this means buying £1bn worth of shares. Even for the most gigantic trusts, this would be complicated. In the short term, any relief in exposure will most likely be felt in trusts with market capitalizations of between £500m and £1bn, which until recently were huge enough for mega chains to include in their wallets.

The most serious risk comes from the unintended consequences of regulation that put the sector’s own lifestyles at risk. The method behind calculating the underlying costs continues to divert capital away from the sector. Investments accepted as true now seem very expensive, especially in options. Asset categories such as shipping, personal equity, and second-hand life insurance policies, where those calculations produce very strange effects and, as a result, many accept as true that they are highly unlikely to safely invest in the types of investors whose products are advertised. for cheap reasons. While there has been some encouragement lately, with Her Majesty’s Treasury recognising the challenge and factor being debated in Parliament, we may have to wait some time before proceeding with reform. In addition, it is transparent that advisors have reacted to the low costs of accepting as true with actions related to higher discounts through selling.

These demanding situations suppressed demand and left the market in excess. With the industry relying on the balance between source and demand, it’s no surprise that sector-wide refunds are near the highest levels ever recorded. Previous events when inventory costs stocks that have so far fallen below the price of underlying portfolios were periods of excessive market stress, such as the global currency crisis.

We’ve heard the death knell of investment trusts time and time again. The industry has evolved and progressed. There are self-help measures that can be taken. Oversupply can be solved through buybacks. The herb variety law is alive and well in the world of closed budgeting and we expect the recent trend of mergers and liquidations to continue. There are new audiences to focus on, such as self-directed investors and wealth control startups, occasionally made up of other people who have left the big chains. Although experimental capital structures are being discussed, closed budgets are the most productive way to access illiquid asset classes. The difficulties of the open real estate budget summarize the demanding situations and explain why the investment budget will continue to exist.

Collaborators

Within our portfolio, uranium proved to be our greatest contributor as the metal’s spot price crept up steadily. A severe shortfall in supply is developing. This has been exacerbated by energy security concerns given Russia and Kazakhstan’s roles in the supply chain. Turmoil in Niger is disrupting supplies of Uranium to the French power industry. The decision to extend the lives of many power stations in an effort to achieve net zero is leading to demand being much greater than expected in the short term. Longer term demand will be driven by the build out of the nuclear industry in the Middle East and Asia. Whilst uranium is not a rare metal, it will be impossible to boost supply meaningfully given the long lead times , often a decade, in turning a promising deposit into a working mine.

Shares in Georgia Capital have continued their steady appreciation yet still trade at an extreme discount. The country stands at the traditional economic sweet spot where wealth has just reached the point where the population can afford to visit pharmacies, get their cars serviced and insured and pay to get their children educated. In the short term the local economy has been boosted by the arrival of much of Russia’s IT Industry who prefer Tbilisi to the risk of being called up at home. Despite recent successes we doubt whether the trust has a long-term future. In current conditions It is difficult enough for any investment trust to generate a following, let alone an eastern European single country fund. At some point this will be recognised and an alternative structure sought. Should the team who are significant shareholders seek an exit, they will achieve this by handing back assets to shareholders at market value. Georgia Capital is exactly the sort of situation we seek. It offers returns from an attractive macro view as well as a special situation element.

We benefited from the tripartite merger between Nippon Active Value, Atlantis Japan and Aberdeen Japan. We were able to sell some of our Atlantis shares at a slight discount. This transaction eliminated what turned out to be one of our most disappointing actions and shifted the focus to active investment in Japan, one of our current themes. We already owned shares of Nippon Active Value, which have become one of our largest holdings after the merger.

Other useful contributions came from the exposure to India and Vietnam. Both countries have benefited from multinationals’ preference to diversify their supply chains and production operations outside of China, given the deterioration with the United States.

Detractors

Disappointments come with Baker Steel Resources, Phoenix Spree Deutschland, and Macau Property Opportunities. In the case of Baker Steel, there is currently little interest in loans for the advancement of new mines and many of the trust’s projects have been delayed due to lack of funding. . It is worth noting that the cost of those assets is now only a fraction of what they would cost as a working mine. Baker Steel’s percentages are trading with a significant reduction in its already depressed cost of books. Few successes have managed to increase the percentage cost considerably. Why Phoenix Spree is so depressed is a mystery, given that Vonovia, its locally indexed counterpart, has been making steady progress in recent months. There is still a shortage of residential housing to be contracted in Berlin. The ultimate explanation is probably the lack of interest and wisdom about this asset elegance among UK investors. After an explosion of enthusiasm around China’s post-Covid reopening, recent news has been miserable and has had a negative effect. Affects the percentage cost of Macau Opportunities.

Despite strong progress in its portfolio, Oakley Capital’s PVA struggled during the period. The private equity budget was primarily affected by the position disclosure issues discussed above.

Additions

We have added to the unloved biotechnology sector by introducing a holding in RTW Biotech Opportunities. The biotech sector is suffering from a hangover as the result of the excesses of 2021. The sector tends to be categorised as early stage and its share prices move inversely to Treasuries. Therefore, Biotechs have been punished as interest rate expectations have increased and the sector now trades at a twenty year low, leaving market prices out of synch with fundamentals. Retail investors and investment tourists have long departed share registers. The inverse correlation with Treasuries explains why counterintuitively the sector acts defensively heading into a recession. Increased innovation has led to significantly more drugs reaching the market with a record number of approvals expected in 2023. Fifty per cent of new products are developed by smaller companies so the long term winners are unlikely to be the big index stocks. A significant number of blockbuster drugs are coming off patent so big pharma has an urgent need and the necessary cash to buy Biotechs in order to restock product lines. The Inflation Reduction Act ensures that drug pricing is off the agenda in the run up to the forthcoming US election. We have adopted a package approach owning Biotech Growth and International Biotechnology in addition to RTW Biotech. Discount controls mean that the value lies in underlying portfolios rather than these trusts trading below stated NAV.

We took a position in Ecofin US Renewables after a tornado damaged its wind farm in Texas. The electrical substation that connects the site to the grid has been destroyed. A new connection is being made through another substation. Meanwhile, acceptance as is the case will pay a reduced dividend. The reaction of stock values has been disproportionate to the challenges.

Outputs

Industrials REIT was acquired through Blackstone at the beginning of the era and Atlantis Japan was acquired through Nippon Active Value, as previously reported. Vietnam Enterprise was sold in effect, leaving our exposure to Vietnam focused on VinaCapital Vietnam Opportunities.

Outlook

In recent weeks the outlook has brightened as expectations of further interest rate rises have petered out. Investors will now anticipate their eventual decline. Many investment trust share prices are languishing at levels which generate attractive yields for investors buying today. Should interest rates actually fall, this attraction will grow further. In the medium term such wide discounts are unsustainable as, if the market fails to properly value closed ended funds for structural reasons, then the real world will claim the underlying assets on the cheap albeit at higher levels than today. Furthermore, should there prove to be a sensible reform of the cost disclosure regime, we should expect trust share prices to rally sharply as investors who have been forced onto the sidelines are allowed to return to the market. Generally speaking, when discounts have become very wide trust investors have then benefitted from the powerful combination of rising net asset values and narrowing discounts. Given the widespread opportunities to exploit mispricings, our cash position steadily declined during the period under review and has continued to decline since.

Nick Greenwood

Asset Value Investors Limited

December 19, 2023

Average underlying discount*

Top 12 Actions

Weight (%)

Discount (%)

VinaCapital Vietnam Opportunity Fund

6,4%

(19. 6)

Capital of Georgia

5,4%

(59. 2)

yellow cake

4,9%

(16. 6)

Geiger counter

4,8%

(26,0)

Oakley Capital Investments

4,2%

(38. 3)

Nippon Active Value Fund

4.0%

(8.9)

JPMorgan Indian Investment Trust

3.8%

(19. 8)

Baker Steel Resource Trust

3,2%

(48. 7)

New Brunswick Private Equity Partners

3,2%

(30. 1)

Aquila European Renewable Energies

3,1%

(26. 4)

Phoenix Spree Germany

2,7%

(61,4)

New Star Investment Trust

2.7%

(38,0)

Average Discount

48,4%

(32. 8)1

Source: Bloomberg, 31. 10. 2023.

1 Note that the average drawdown figure only takes into account the 12 most sensible stocks in the portfolio.

Portfolio Valuation

until October 31, 2023

Security

Investment

Sector

Region

Valuation in thousands of £

of the value of the asset

VinaCapital Vietnam Opportunity Fund

Capital Investment

Asia Pacific – Vietnam

4 730

6,4%

Capital of Georgia

Equity

Europe 

3 965

5.4%

Yellow cake*

Mining – Uranium

Worldwide

3,588

4,9%

Geiger counter#

Mining – Uranium

Worldwide

3,515

4,8%

Oakley Capital Investments

Private capital

Worldwide

3 135

4. 2%

Nippon Active Value Fund

Actions – Petite Cap.

Japan

2 988

4,0%

Indian Investment Trust JPMorgan

Equity

India

2 815

3,8%

Baker Steel Resources Trust

Mining

Global

2 397

3. 2%

New Brunswick Private Equity Partners

Private Equity

North America

2 382

3.2%

Aquila European Renewable Energies

Other – Renewable Energy

Europe 

2 295

3,1%

31,809

43,0%

Phoenix Spree Germany

Real Estate

Europe 

2 028

2,7%

New Star Investment Trust

Equity

Worldwide

2. 026

2,7%

Real estate investors*

Real Estate

UNITED KINGDOM

1 994

2.7%

Duke Royalty*

Other – Alternative Lender

Global

1 985

2,7%

EPE Special Opportunities*

Private Equity

UNITED KINGDOM

1 899

2,6%

International Biotechnology Trust

Equity

1. 540

2,1%

River & Mercantile UK Micro Cap Investment Co

Actions – Petite Cap.

1,502

2.0%

QCC’s Natural Resource Growth & Revenue

Mining

Worldwide

1 499

2.0%

Hansa Investment Co.

Equity

Worldwide

1. 373

1,9%

Biotech Growth Trust

Equity

UNITED KINGDOM

1 364

1,8%

49,016

66,3%

Tearing down the Micro-Cap strategic investment fund

Shares – Petite Cap.

UNITED KINGDOM

1 328

1,8%

Dunedin Enterprise Investment Trust†

Private Equity

Worldwide

1 269

1. 7%

Ground Rents Income Fund

Realty

1 240

1,7%

Life Settlement Assets

Other – Life Policies

North America

1 183

1.6%

Macau Real Estate Opportunity Fund†

Realty

Asia Pacific – China

1,120

1.5%

Indian Capital Growth Fund*

Equity

India

1 029

1,4%

Amedeo Air Four Plus

Other – Specialized Funds

1 013

1,4%

Ecofin, U. S. Renewable Infrastructure Fund

Private capital

North America

995

1,3%

Schroder Capital Global Innovation Trust

Equity

Worldwide

961

1.3%

Rockwood Strategic*

Actions – Petite Cap.

UNITED KINGDOM

889

1.2%

60,042

81,2%

Rights and Emissions Investment Trust

Actions – Petite Cap.

UNITED KINGDOM

817

1,1%

Investments in VPC Special Loans

Other – Alternative Lender

Worldwide

787

1,1%

Henderson Opportunities Trust

Equity

UNITED KINGDOM

735

1,0%

AVI Japan Opportunity Trust

Equity

Japan

733

1. 0%

Schroder British Opportunities Trust

Equity

701

0,9%

Investments in chrysalis

Private Equity

Europe 

685

0,9%

RTW Opportunities in Biotechnology

Equity

Global

675

0,9%

Marwyn Value Investors

Equity

UNITED KINGDOM

647

0,9%

EIF Investments

Other – Specialized Funds

world

432

0,6%

Real Estate Income

Realty

Africa

385

0,5%

66 639

90. 1%

Chelverton Growth Trust

Equity

UNITED KINGDOM

177

0.2%

Properties of Aseana†

Realty

Pacific

110

0,1%

Reconstruction Capital II*†

Equity

Europe

0,1%

Best PCC in the Capital†^

Private Equity

UNITED KINGDOM

0,1%

RENN Universal†^

Equity

North America

0.1%

Cambrium Global Timberland*†

Other – Forestry

world

0.0%

Crystalline amber background*

Actions – Petite Cap.

UNITED KINGDOM

0,0%

Total Investments

67,166

90. 8%

Other current assets (including net cash)

6,790

9.2%

Net Asset Value

73 956

100,0%

* AIM/NEX listing

† In liquidation, ongoing or alive.

# Includes common and convertible preferred stock.

^ Unlisted or recently postponed stock trading.

Capital Structure

As of the date of this report, the Company’s percentage capital is comprised of 23,072,797 percentages of 1 pence each with one vote per percentage. The Company’s bylaws include provisions that allow percentage holders to elect, at three-year intervals, to realize all or part of their percentage holding (the “Realization Opportunity”). At the Company’s discretion, percentage holders may request that all or a portion of the Common Shares they hold be placed, redeemed or purchased with the proceeds. of a factor of new Common Shares, or purchased under a tender offer or through a market maker. If the holding choices cannot be discarded in their entirety through the placement and/or refund mechanism, all remaining electives consistent with percentages will be commuted to a percentage-consistent hold.

Also in the event that the Company does not make available to members an opportunity to effect such a realisation at the appointed time, shareholders may serve a realisation election requesting that all or part of their Ordinary shares be converted into Realisation shares.

The portfolio would then be divided into two separate and separate groups on a pro rata basis between the continuing non-unusual shares (the “Continuation Fund”) and the Realization Shares (the “Realization Fund”). The Continuation Fund would be controlled in accordance with the Company’s investment objective and policy, while the assets comprising the Realization Fund would be controlled in accordance with an orderly realization program with the goal of generating progressive monetary returns for the holders of Realization Shares as soon as possible. The exact mechanism for any money reimbursement to holders of Realization Shares would be based on the applicable points in effect at the time and would be at the discretion of the Commission. If the net asset price of shares held by the Company exceeds £30 million, the Company will continue as a going concern. restlessness.

In September 2021, the Company offered a Realisation Opportunity, giving shareholders the option either to retain or to realise their investment in the Company. Realisation elections were received in respect of 0.55% of shares in issue at the time, and these shares were subsequently repurchased by the Company. There are currently no Realisation shares in issue. The next Realisation Opportunity will be offered to shareholders in 2024. The Board intends to put forward tailored proposals in relation to each Realisation Opportunity to ensure it can be delivered efficiently and in accordance with the best interests of the Company, at the relevant point in time.

Principal Risks and Uncertainties

A review of the half year and the outlook for the Company can be found in the Chairman’s Statement and in the Investment Manager’s Review. The principal risks and uncertainties facing the Company fall into the following broad categories: investment risks (including market and discount risk; liquidity, cash and foreign exchange risk and interest rate risk), strategic risks (including shareholder relations and share price performance risk; key person risk and company duration risk), operational risks (in particular service provider risk) and macro risks (including global risk, ESG and climate change risk, UK regulatory risk, UK legal risk and governance risk). These risks were explained in detail on pages 17 to 22 in the Annual Report for the year ended 30 April 2023.

In addition, a deterioration in the economic environment is identified as the main threat and uncertainty, which could have an effect on the portfolio’s investments and, potentially, on the Company’s service providers.

Related Party Transactions

During the first six months of the current fiscal year, there were no similar transactions that have had a significant effect on the Company’s monetary condition or performance.

Ongoing Concern

The Directors are of the opinion, after reviewing the Company’s investment objective, threat control policies, capital control policies and procedures, portfolio nature and expense projections, that the Company has sufficient resources, adequate monetary design and adequate control arrangements in a position to continue. to operate in the foreseeable long term and, in particular, that there are no general uncertainties relating to the Company that would prevent it from continuing to operate for at least twelve months from the date of approval of this Half-Yearly Report. For these reasons, Directors state that there is moderate evidence to continue to adopt the fear of leaving basis when preparing the half-yearly report.

Directors’ Statement of Responsibility

The Board of Directors confirms that, to the best of its knowledge:

(i) the set of abstract monetary statements contained in the half-yearly report has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

(ii) The Half-Yearly Report and condensed financial statements give a true and fair view of the assets, liabilities, financial position and return of the Company; and

(iii) The Interim Management Report includes a fair review of the information required by:

(a) TDR 4. 2. 7R of the Disclosure and Transparency Rules, being an indication of significant events that occurred during the first six months of the monetary year and that affect the abstract set of monetary statements; and a description of the main hazards and uncertainties for the remaining six months of the year; and

(b) DTR 4. 2. 8R of the Disclosure and Transparency Rules, with respect to transactions between like parties that took place in the first six months of the existing monetary year and materially affected the monetary position or functionality of the entity in that period; and any adjustments in like-party transactions described in the most recent annual report that would possibly do so.

The half-yearly report has been reviewed or audited by the Company’s statutory auditor.

This semi-annual report includes certain forward-looking statements. These statements are made through the Directors at Smart Religion based on the data available to them as of the date of this report and such statements should be treated with caution due to the inherent insecurities, adding economic and commercial threat factors, underlying such future contracts. – Information retrieval.

By and on behalf of the Council

Richard Davidson

Chairman

December 19, 2023

Condensed Income Statement Source

Six months to

October 31, 2023

(unaudited)

Six months to

October 31, 2022

(unaudited)

Income

Capital

Total

Income

Capital

Total

Note

000 £

£’000

000 £

Investment losses

–

(1 697)

–

(9 492)

Income

936

–

936

754

–

754

Investment Management Fees

(250)

–

(250)

(273)

–

(273)

Other Expenses

(525)

–

(525)

(286)

–

(286)

Return/(loss) before cash expenses and source of income taxes

161

(1 697)

(1,536)

195

(9 492)

(9 297)

Finance costs

(52)

–

(52)

(53)

–

(53)

Pre-tax return/(loss)

109

(1 697)

(1,588)

142

(9 492)

(9 350)

Taxes

–

After-tax return/(loss)

109

(1,697)

(1,588)

142

(9 492)

(9 350)

Return/(loss) per ordinary share (pence)

0,5

(7. 1)

(6. 7)

0.6

(37,8)

(37. 2)

The Total column in this is the company’s source of income. The source of additional income and capital columns have been ready in accordance with the rules issued through the AIC.

All sources of income and pieces of capital disclosed in the above are derived from procedural transactions. There are no identified gains or losses other than those that come from the source of income and therefore no comprehensive general source of income has been presented.

Notes form an integral component of those monetary statements.

Condensed Statement of Changes in Equity

Capital

repurchase

Premium Quality

Special

Capital

Income

capital

reserve

account

reserve

Total

000 £

£’000

£000

000 £

Six months as of October 31, 2023 (unaudited)

Balance at 30 April 2023

243

111

29 088

–

49 175

1,231

79 848

Buyback of shares for cancellation

(11)

–

(3 597)

–

(3,597)

Dividends paid

–

(707)

Missed period

–

(1 697)

109

(1 588)

Balance as of October 31, 2023

232

122

29 088

–

43,881

633

73 956

Six months to October 31, 2022 (unaudited)

Balance at 30 April 2022

261

27,729

1. 222

65. 034

349

94 684

Buyback of shares for cancellation

(12)

–

(1 222)

(2,787)

–

(4 009)

Issuance of shares

–

675

–

677

Dividends paid

–

(100)

Profitability for the period

–

(9,492)

142

(9 350)

Balance as of October 31, 2022

251

101

28 404

–

52,755

391

81 902

The notes form an integral part of these financial statements.

Condensed Statement of Financial Position

As in

October 31, 2023

April 30, 2023

(unaudited)

(audited)

Note

000 £

Non-current assets

Investments

67. 166

67. 855

Current assets

Debtors

361

Money

6 995

13 139

7 050

13,500

Creditors: amounts owed within one year

Creditors

(260)

(1 507)

(260)

(1 507)

Net Assets

6 790

11 993

Net Assets

73 956

79 848

Share capital and reserves:

Share the capital

232

243

Premium Account Share

29 088

Principal Amortization Reserve

122

111

Capital Reserve

43 881

49 175

Revenue reserve

633

1. 231

Total shareholders’ funds

73 956

79 848

Net asset price consistent with a non-unusual percentage consistent with (pence)

319. 2

328.6

The net asset price according to the usual percentage is 23,172,797 according to the percentage, which is the percentage as of October 31, 2023 (April 30, 2023: 24,297,797).

Notes form an integral component of those monetary statements.

Condensed Statement of Cash Flow

Six months to

October 31, 2023

October 31, 2022

(unaudited)

000 £

£’000

Net money from operating activities

441

311

Investment activities

Investment Purchases

(11 286)

(5 546)

Sales of investments

9,043

10 107

Net money (outflow)/net inflow from investing activities

(2 243)

4 561

Financing activities

Issuance of shares

–

677

Buyback of shares for cancellation

(3 597)

(4,009)

Dividends paid

(706)

(100)

Financial fees paid

(35)

Net outflow of money from financing activities

(4 338)

(3 467)

(Decrease)/Cash Increase

(6 140)

1 405

Reconciliation of Cash Flows of Funds:

Effective at the beginning of the period.

13 139

10,891

Exchange Rate Movements

(4)

(Decrease)/Cash Increase

(6 140)

1 405

(Decrease)/Cash Increase

(6 144)

1,401

Cash at end of period

6 995

12 292

Notes form an integral component of those monetary statements.

Notes to Intermediate Condensed Monetary Statements

1 Accounting Policies

These abstract money funds have been prepared on the basis of fear in accordance with the Financial Conduct Authority’s transparency and disclosure guidance regulations, FRS 104 “Interim Financial Reports”, the best practice “Financial investment funds are accepted as true with venture capital”. companies. ” Trusts updated as of July 2022 and using the same accounting strategies established in the Company’s Annual Report for the year ended April 30, 2023.

2 Financial Statements

The condensed monetary statements contained in this interim monetary report do not constitute statutory accounts within segment 434 of the Companies Act 2006. Monetary data for the six months ended October 31, 2023 and October 31, 2022 have not been audited or revised. through the Company’s Management Committee. External auditors.

Data for the year ended April 30, 2023 is taken from recently published audited monetary highs. These statutory monies were filed with the Commercial Registry and included the auditors’ report, which had no reservations and did not involve any part of segment 498. (2) or (3) of the Companies Act 2006.

3 In operation

After making enquiries, and having reviewed the investments, Statement of Financial Position and projected income and expenditure for the next 12 months, the Directors have a reasonable expectation that the Company has adequate resources to continue in operation for the foreseeable future. The Directors have therefore adopted the going concern basis in preparing these financial statements.

4 Income

Six months to

October 31, 2023

October 31, 2022

000 £

Investment Income:

Source of dividend income in the UK

328

175

Source of dividend income outside the UK

373

453

Dividends on Asset Income

–

110

Total income from investments

701

738

Bank interest

235

Total Revenue

936

754

5 Hierarchy of values

Fair price measurement strategies are categorized according to a hierarchy based on the reliability of the data used for valuation.

Level 1 – Prices quoted in a market.

Tier 2: Data other than quoted costs included in Tier 1 that are observable (i. e. , evolved market data), directly or indirectly.

Level 3: Inputs are not observable (i. e. , for which knowledge is available in the market).

The following table presents the hierarchy of fair values of the Company’s investments.

Level 1

Level 2

Level 3

Total

000 £

£’000

As of October 31, 2023

Investment – Stocks

67,022

–

144

67 166

Total

67 022

–

144

67 166

As at 30 April 2023

Investment – Stocks

67,672

–

183

67 855

Total

67 672

–

183

67,855

Glossary of Terms and Alternative Performance Measures (“MAPs”)

Discount or Bonus (APM)

A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share, the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount.

As a

Like in

October 31, 2023

April 30, 2023

Consistent closing net assets with consistent percentage (p)

319. 2

328,6

Closing Percentage Value (p)

310. 5

318,5

(Discount)

(2,7)%

(3,1)%

Net Asset Value (“NAV”) Total Return (APM)

The overall NAV yield is the final net asset consistent with the stock, adding the cumulative dividends paid as a percentage consistent with the initial net assets.

The overall net asset price retracement is a select way to measure the investment control functionality of the investment budget that is affected by movements in percentage price.

six months to

One for

five years to

October 31, 2023

31 October 2023

Consistent closing net assets with consistent percentage (p)

319. 2

319.2

Reinvested dividends (p)

3.0

3.4

3. 4

Final dividend-adjusted NAV consistent with consistent percentage (p)

322. 2

322. 6

322,6

Consistent opening net asset value with consistent percentage (p)

328,6

326.2

270.4

Dividend-adjusted net asset returns (NAVs) consistent with the stock

(1,9)%

(1,2)%

19,3%

Continuous Fees (APM)

Current expenses are calculated by taking the Company’s annualized profit and capitalized expenses (excluding monetary expenses and certain non-recurring items) expressed as a percentage of the Company’s average monthly net assets during the year.

Six months to

Year to

October 31, 2023

30 April 2023

000 £

Total Expenses through the Income Statement

827

1,199

Fewer non-recurring expenses

(198)

–

Total Expenses – Annualized

1 258

1 199

Average Assets

78 125

83 660

Ongoing charges

1,6%

1,4%

The percentage of existing expenses reflects the prices incurred directly through the Company and related to the control of a static investment portfolio. According to AIC guidelines, the percentage of continuous prices excludes non-recurring items. In addition, the NAV functionality also includes prices incurred directly or on investments controlled through third-party fund managers. Many of those managers offset those prices in their valuations and are therefore part of the company’s return on investment, and it’s impractical to calculate a percentage of current prices from the data they provide.

Total Stock Price Return (APM)

The combined effect of the increase and fall in constant percentage value, as well as any dividends paid/reinvested. Total retrospective statistics allow the investor to make functional comparisons between accepting as true and other dividend policies. All dividends (after taxes) earned through a consistent percentage holder are assumed to have been reinvested either in additional percentages of acceptance as true at the time the consistent percentages are ex-dividend (the total value of the consistent percentage returns) or in the assets of acceptance as true with their cost of net assets consistent with percentage consistent (the overall net asset value is traced).

Six months to

One for

Five years to

October 31, 2023

Closing Percentage Value (p)

310.5

310,5

Dividends reinvested (p)

3. 0

3. 4

Dividend-adjusted closing percentage value (p)

313,5

313.9

Initial Inventory Value (p)

318.5

325,5

271. 0

Dividend-adjusted yield

(1,6)%

(3. 6)%

15,8%

Net asset value volatility (NPV)

Volatility is similar to the degree to which the costs or costs of net assets differ from their average (the popular deviation). Volatility is calculated by taking the price of net assets or final costs for the applicable year and calculating the popular cost variance. The popular deviation is then multiplied by an annualization element corresponding to the square root of the number of working days in the year.

Six months to

Year Ended

October 31, 2023

April 30, 2023

NIV Standard Deviation (A)

0,4%

0,5%

Number of days

128

250

Square root of the number of trading days (B)

11. 3

15. 8

Annualized Volatility (A*B)

4,5%

8,2%

Information for shareholders

Stock Trading

Shares can be traded through a stockbroker or other authorised intermediary. The Company’s Ordinary shares are traded on the London Stock Exchange. The Company’s shares are fully qualifying investments for Individual Savings Accounts (“ISAs”).

Share register enquiries

The Company’s common stock registry is maintained through Computershare Investor Services PLC. If you wish to notify a replacement call or address, please contact the Registrar in writing at Computershare Investor Services PLC, the Pavilions, Bridgwater Road, Bristol BS99 6ZZ.

If you have any questions regarding your tickets, please contact Computershare on 0370 889 3231 (lines are open from 8:30 a. m. to 8:30 a. m. ). 5:30 p. m. UK time, Monday to Friday). You can also send an email to WebCorres@computershare. co. uk or tap the Registrar www. investorcentre. co. uk.

Share capital and net asset value information

SEDOL 3436594

Problem ISINGB0034365949

Bloomberg symbol MIGO

The Company publishes its net asset price daily according to a constant percentage on the London Stock Exchange.

Website: www. migoplc. co. uk

Annual and semi-annual reports

Copies of the annual reports from the corporate secretary and on the company’s website are available for purchase. Copies of the semi-annual reports can only be obtained on the Company’s website.

AIFM & Investment Manager: Asset Value Investors Limited

The Company’s Alternative Investment Fund Manager (“AIFM”) and Investment Manager is Asset Value Investors Limited (“AVI”) which was appointed with effect from close of business on 15 December 2023. AVI is an experienced manager of investment trusts with assets under management of £1.4 billion as at 31 October 2023, deep sector expertise and supportive analyst resource.

Previously, MIGO’s investment manager, Premier Fund Managers Limited.

Updates for investors in the form of monthly fact sheets are available on the company’s website, www. migoplc. co. uk.

Association of Investment Firms

The Company is a member of the Association of Investment Companies.

Directors and Advisers

Directors (all non-executives)

Richard Davidson (Chair)

Katya Thomson (Chair of the Audit Committee)*

Hugh van Cutsem

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