MIGO OPPORTUNITIES TRUST PLC

Earnings Release • Feb 13, 2025

All performance shown in GBP Total Return

*SONIA +2% Sterling Overnight Interbank Average administered by the Bank of England

SONIA* 0.6% 5.4% 7.3% 19.2% 24.3% 40.5%

PORTFOLIO ( Holdings to 31 January 2025 )

Sector Breakdown (% of Portfolio)

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Market Cap Breakdown (% of Portfolio)

MANAGERS COMMENT

MIGO's NAV fell by 0.1% in January

January was a dull month for the Trust with the NAV down 0.1%. Although the performance of the Trust over the month was essentially flat, we believe that we have a good portfolio of trusts with catalysts which should drive returns going forward.

Ground Rents Income

Ground Rents Income ("GRIO") was our best performer after the board announced it had rejected a takeover offer from a property company, Victoria Property. Victoria originally put forward a bid of 34p which was a 48.5% premium to the then share price and the shares rallied in response. Later in the month they increased this bid to 37p, with a further increase to 40p at the time of writing. GRIO has struggled for several years as ground rents became a political issue under the Conservative government, with Michael Gove (then Secretary of State for Levelling Up, Housing and Communities) at times threatening to confiscate assets as part of a reform of the sector.

The new Labour government is unlikely to take such drastic actions, but ground rent reform is not high on their agenda. Due to issues with cladding on properties in the wake of the Grenfell tragedy, and uncertainty around who was responsible for remedial costs, the trust received a qualified audit and suspended its dividend.

Despite the company's travails and the bids being at substantial premia to the share price, the Board has rejected them on the basis of them "severely undervaluing the company". We note GRIO successfully sold its largest

asset in December 2024 which helped pay down their gearing. As a result of the bids, reduction in gearing, and reassurance around reforms, we have been adding to the position given what seems like an increasingly asymmetric return profile from here.

VH Global Sustainable

VH Global Sustainable ("ENRG") detracted 0.7% from the fund's returns during January. The trust has a portfolio of sustainable energy assets such as hydropower in Brazil and battery storage in Australia. While the company's 50% discount is largely due to external headwinds, we believe the managers have also made some strategic errors.

Increasing bond yields have put pressure on alternative trusts such as ENRG where investors have returned to more traditional sources of income, such as gilts. The trust is also sub-sized for many managers with the market capitalisation standing at a little over £200m and a concentrated share register means liquidity is poor. A new investment in Spanish solar late last year, made despite the trust trading on a sizeable discount at that point, has left the managers with little firepower for buybacks. More recently, Trump's tariffs have cast a shadow over the US Terminal Storage Assets which aim to reduce sulphur content in Mexico's supply chain. Despite these challenges, we see an opportunity in ENRG, noting it is due to hold a continuation vote in early-2026.

STATISTICS

Contributors / Detractors (in GBP)

		% Weight
Ground Rents Income Fund PLC	49	1.8
Geiger Counter Limited	41	2.9
Amedeo Air Four Plus Limited	30	1.9
International Biotechnology Trust	18	3.0
PRS REIT Plc	14	5.3

		% Weight
VH Global Energy Infrastructure	-57	2.7
Life Science Reit Plc	-29	2.5
Cordiant Digital Infrastructure	-24	3.3
Augmentum Fintech PLC	-23	2.4
Chrysalis Investments Limited	-20	4.6

Fund Facts
Launch Date	06 April 2004
Net Assets	£73.3m
Investment Manager	Asset Value Investors Limited
MIGO Shares in issue	20,056,377
Shareholder Services	Link Asset Services
Management Fee	0.65%
Website	www.migoplc.co.uk
Ticker Code	MIGO.LN
ISIN	GB0034365949

	1m	3y	5y	10y
Share Price TR	0.6	-3.2	27.1	126.1
Net Asset Value TR	-0.1	1.0	31.0	106.5
Numis All-Share Index	5.3	23.0	35.2	84.5
SONIA	0.6	19.2	24.3	40.5
	CYTD	2024	2023	2022
Price	0.6	5.7	2.6	-10.9
Net Asset Value	-0.1	6.4	2.9	-12.7
Numis All-Share Index	5.3	9.7	3.6	-2.5
SONIA	0.6	7.4	1.8	3.4

Ordinary Shares	20,056,377
Credit facility**	£10m
Gross Assets	£83.3m

** The amount drawn as at 31 August 2024 is £10m. Cost of borrowing is SONIA +1.45% on any drawn balance and 0.72% on any undrawn balance.

Investment Manager – Nick Greenwood & Charlotte Cuthbertson

AVI Ltd. +44 20 7659 4800 info@assetvalueinvestors.com

The share price can be found in London Stock Exchange. ISIN: GB0034365949 Trading as: MIGO

Information may be found on the following website: www.migoplc.co.uk

IMPORTANT INFORMATION

All figures are as at the period under review unless otherwise stated. All sources Asset Value Investors Ltd ("AVI") unless otherwise stated. AVI is authorised and regulated by the Financial Conduct Authority of the United Kingdom (the "FCA") and is a registered investment adviser with the Securities and Exchange Commission of the United States. While AVI is registered with the SEC as an investment adviser, it does not comply with the Advisers Act with regard to its non-U.S. clients. This document does not constitute an offer to buy or sell shares in AVI Global Trust plc (the "Trust"). The contents of this message are not intended to constitute, and should not be construed as, investment advice. Potential investors in the Trust should seek their own independent financial advice. AVI neither provides investment advice to, nor receives and transmits orders from, investors in the Fund.