Aberdeen Diversified Income and Growth Trust - Moving within the target

Aberdeen Diversified Income and Growth Trust (ADIG), a diversified multi-asset fund, performed in line with its targets over the last 12 months. Overall performance has stabilised and improved since the Q420 strategic review, when the board addressed the disappointing performance between 2017 and 2020, as the three-year period of the chart below illustrates. The restructured portfolio assets have been generating both yield and return on capital. The manager expects stable and dependable dividends to be covered with recurring income within one to two years (current cover 0.99x), supported by steady income and the use of revenue reserves, if necessary. The continuing double-digit discount could present an investment opportunity, as ADIG is on a performance recovery track.