Net Asset Value (NAV) Write-down at DGI9

This article reflects the opinions of its author and not necessarily those of ShareSoc.

Was fund manager Triple Point overpaid?

As Sachin Saggar comments in this piece, it is inconceivable that the manager of Digital 9 Infrastructure (DGI9), a Jersey regulated closed-ended fund, did not know the NAV, on which basis they received fees, was materially overstated.

It is time for the company to put the insurers of everyone involved on notice and for the Jersey regulator to step in and investigate Triple Point. The new board are blameless, but it is a regulatory requirement that fund managers have insurance and this is precisely why. Triple Point have lost hundreds of millions investing in assets that have not, as a class, slumped in value. It seems to me that it has been incompetence and hubris that has done for DGI9. That they have taken significant fees based on an alleged NAV of 79p at a time the market was valuing the company at 20p is shocking.

Investors have suffered here, and there is no merit in the company itself being investigated. It is the Manager and the valuers, who sucked up tens of millions in fees, which in my opinion have been inflated by incompetence, that are responsible. Twitter, bulletin boards and sites like Stockopedia are full of investors calling this out as fraud.

Let’s hope Jersey Evening Post covers this. A job for Ben Shenton if ever I saw one.

Paul de Gruchy, ShareSoc member
DISCLOSURE: The author holds shares in DGI9