VC specialising in Fintech
The Company is a public limited company whose shares are premium listed on the London Stock Exchange (‘LSE’)
and will register with HMRC as an investment trust.
The Company’s investment objective is to generate capital growth over the long term through investment in a
focused portfolio of fast growing and/or high potential private financial services technology (‘“fintech”’) businesses
based predominantly in the UK and wider Europe.
The Company does not have a fixed life. The intended retail investors are those with a long-term (‘at least five
years’) investment horizon, the ability to bear capital losses and with, at least, basic market knowledge and
experience. The Company may borrow for working capital purposes; this could potentially magnify any gains or
losses made by the Company. Investors should consider investment in the Company as part of a wider portfolio of
investments.
Shares of the Company will be bought and sold on the LSE. The price you pay or receive, like other listed shares, is
determined by supply and demand and may be at a discount or premium to the underlying net asset value of the
Company. Usually, at any given time, the price you pay for a share will be higher than the price you could sell it.
Giving this a bump, given Freetrade are now actively adding smaller cap UK stocks. Lots of Fintech chatter on this board, so I thought this would be more popular.
Augmentum Fintech’s Portfolio includes
- Habito - Mortgages
- Interactive Investor - Freetrade Competitor
- Zopa - P2P Lending
- Tide - Business Bank
- Monese - Bank
- Onfido - ID Checks
- Seedrs - Crowdfunding
According to their last Annual Report for the year ending 31st March 2019, the Net Asset Value per share was 109.6p, and it has been trading around that mark since then. This is unlike Draper Esprit, another VC available on Freetrade, whose share price skittles about.
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Present NAV 156p.
Although it is probably higher due to an increase in the value of one of its holdings.
Buy price 109p putting it on 32% discount (with NAV based on 156p)
Been going against the market trends last week or so. Up 7.7% last week.
One of my smallest holdings damn!
Interview with manager of Augmentum
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I noticed that the AIC moved AUGM from its tech/media sector to a new financials/financial innovation one which seems more appropriate.
I’ve never had a deep look into this or PCFT, the other trust in the sector, as I’m hesitant to overweight financials. What do you think about the two?
AUGM seems to be relatively high risk and I’d imagine it’s jammed full of loss-making firms.
They are to put it mildly two very different investment trusts.
Polar capital is simply investing in listed bank insurance companies etc, Berkshire Hathyaway would seem a little odd but they do own a lot of insurance companies.
They are two polar opposites pcft investing in profitable companies while Augmentum mainly loss making but on there way to profit.
A fair few are already in profit.
Pcft 10% discount doesn’t make up for a smallish dividend and no meaningful share price gain over most time spans. I would not touch it.
AUGMENTUM have had some very profitable exits.
Over a 2.5 year period listed fintech valuations shot up and then fell over a cliff. During this period AUGMENTUM did not change its valuations. So basically they used the same valuation metrics right through the boom and bust period. Although the market did not as they were on a 25% premium at one time. They now trade at 30% plus discount.
I am happy to accept their valuation. They are a very small part of my portfolio. I will add to them occasionally via dividend payments.
My main problem is no dividend. I always like to see some dividend doesn’t have to be huge but something.
So pcft going no where and unlikely to do so in the future as they appear to invest in developed market financials. Don’t see any emerging market banks which is basically where growth is.
AUGMENTUM growth is more likely to give you a decent total return.
Alas i have no idea wherever this is the right time to invest in AUGMENTUM. Jam tomorrow growth is not the flavour of the month at the moment.
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The discount on Augmentum does in my opinion take into account an expected long wait till jam tomorrow is back in favor.
That said they continue to make profitable exits.
They also have about 50 million in cash.
They refuse to pay to much (in there opinion) for investments.
They also have some downside protection. For instance if new shares are sold below the price they paid they have to be given shares to cover the dilution.
The video above is quite good.
The share price is continuing to rise.
I have a big loss making investment trust which i may sell and buy more Augmentum.
I have no problem selling at a loss if there is a better option available.
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Thank you for such a detailed rundown @Beenthere. AUGM did pique my interest while it was at a 40-50% discount but I have lots of growth and PE expsoure, so I decided not to invest at the time. Between SMT and a few others, I have a fair few fintech stocks already.
It is interesting though. I’m sure there’s money to be made if you can pick it up at a good discount. I’m with you on the PCFT – wouldn’t touch that one.
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Up 20% over the last 7 days.
This is a reminder that AUGMENTUM FINTECH PLC will be holding the meeting Interim Results today at 9:00am .
Forgot about it. Might be some good info but only up 3% today.
Never bought more of these, pity up 9% today on no news.
And still at a 30% discount to NAV 
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And no debt to worry about. In fact money drag is more of a worry.
Augmentum is not prepared to put money into anything unless it’s good quality and at the right price.
The Tide holding looks like a real winner.
PS finished up 6.8% still not bad for the day.
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Sold some 3i yesterday bought Augmentum and HGT.
AUGMENTUM is so cheap when you look at returns and some of the companies they own.
[quote=John Bran;309781]bought a little bit more Augmentum due to this article.
Augmentums final results will be on
Today at 2pm
And is recorded
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Up another 4% today
Bought some before the rise.
Now have an appropriate amount.
24% discount.
But known for conservative valuations.
Saw these on Trustnet’s latest piece and mildly interested. For now though, sticking with the much maligned INOV for fintech/life sciences etc. Nearly 50% discount to nav with investments in Atom, Revolut etc.
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INOV looks interesting but has there been any period where the fund has made a return?
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INOV is to diverse for my liking.
As opposed to Augmentum which is only financials.
Plus the manager created his own successful business, sold it and created Augmentum.
The discount (INOV) on the other hand is probably to extreme, so could be a very good buy when markets turn round.
Personally I would try find trusts specialise in each of the sectors.
HGT for tech software for instance.
“Schroders Capital Global Innovation Trust plc is a United Kingdom-based investment trust. The investment objective of the Company is to achieve long-term capital growth through investing in a diversified global portfolio of private and public equity companies. The Company is also engaged in achieving long-term capital growth by investing in a diversified portfolio of 30-40 companies on an upward trajectory, wherever they may be in the world. The Company invests in various sectors, including healthcare, financials, industrials, technology, consumer, and business services. The Company’s alternative investment fund manager is Schroder Unit Trusts Limited. The Company’s investment manager is Schroder Investment Management Limited”