Update on Africa Opportunity Fund $AOF.L

 * Disclaimer, as a Canadian Investor I am no longer able to add to my position via the OTC market. As a result, I buy into the current NAV discount opportunity. I had accumulated a small position in 2018 with the average price of $.60

Quick update:

This closed-end fund is winding down in a year. The current book value per share (as of June 04, 2021) is $1.099 (USD) and the stock is trading for $0.57 (USD). 

The NAV discount opportunity just got even better since the last posting of the topic. It is important to highlight the fund owns a lot of illiquid African public and private companies. These stocks should benefit from a reflation/reopening trade that is currently the active theme within the market. 

The management is significant shareholder in the fund and the incentive aligned is shareholder friendly for a winding down process. 

May Monthly Report 

Africa Opportunity Fund Limited $AOF.L

*Disclaimer, I have a very small position in this fund. Been a shareholder since 2018 and the average cost per share $.60 (USD).


Quick Takes
1. This stock is illiquid and trade at the London Stock exchange.
2. The book value is $0.821 (As of May 21, 2021) and the stock price trades at $0.52 (last trade)
3. The fund is liquidating its positions and returning cash by June 2022
4. The fund holds illiquid African equities (frontier market)
5. Great Capital Allocator (Fund manager: Francis Daniel
6. Expected Return of 57% CAGR (By June 2022)

Quote from 2020 Annual report "The shareholders of Africa Opportunity Fund (the "Fund" or "AOF") held an extraordinary general meeting in June 2019 to decide on the future of the Fund. They voted to realize the assets of the Fund over a three-year period ending on 30 June 2022 and for those realized assets to be returned to shareholders, whether by intermittent compulsory redemptions or other forms of shareholder distributions"