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Naxs: NAV and TSR outperformed in Q3 - ABG

+3% return in Q3…
…driven by +4% in NAV and +1pp in discount
NAV discount currently at 10% (historical avg. is 16%)

NAVPS as of 30 September was SEK 68.49, implying an increase of +4.3% q-o-q. Total shareholder return (TSR) amounted to +3% (SIXRX benchmark +1%), as the discount to NAV rose 1pp to 17%. With regard to the direct investments, Scout Gaming Group (+5%) and Awilco Drilling (+14%) posted gains while Keurig Dr. Pepper (-3%) was down. However, it was the strong development in the valuation of the fund investments that drove the NAV increase. Private equity fund investments currently comprise 60% of NAV (75% including commitments), with direct investments at 5% and net cash at 35%.

NAXS currently offers exposure to 14 funds from nine different managers and seven direct investments. The discount to NAV currently stands at 10%, which is below the historical average (2010-) of 16%, but still stands out as high in the investment company sector. Based on the stocks that we track, the median sector valuation is a premium of 4%. In addition, the balance sheet remains strong, and we believe the dividend yield is likely to stay at around 5% over the next few years, based on today’s valuation.
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