Scherzer & Co - Successful conclusion of AXA case

Scherzer’s (PZS) NAV at end August 2020 increased by 12.6% ytd, ahead of German equity markets, which were roughly flat compared to end FY19. The main NAV uplift came from profit derived from the ECS portfolio and Audi’s squeeze-out price announcement. The impact of PZS's portfolio management on its P&L was only marginally positive, as valuations remain depressed and companies reduce dividends in uncertain times. Under current accounting standards, PZS’s NAV growth may lag that of the broader market until investments are realized. Also, a significant part of the portfolio is ‘locked’ in anticipation of squeeze-outs, which on execution will have a positive impact on the P&L and enhance the ECS portfolio.