Factsheet: Rights & Issues Investment Trust Ord
UK Smaller Companies
New for 2018. Concentrated portfolio for adventurous investors
We considered adding MI Discretionary Unit, which was highly commended in the UK Smaller/Mid Cap Equity category of Money Observer's fund awards 2017, and its investment trust stablemate Rights & Issues, but have favoured the trust.It is a punchier proposition, having produced superior performance from a more concentrated portfolio. Its top 10 holdings accounted for 85 per cent of its assets in mid 2017, compared to 60 per cent for the fund.The trust has been run by Simon Knott, a low-profile 'deep value' investor, for more than 30 years. He believes that rigorous risk analysis of his investments helps to control risk despite the concentrated portfolio. He keeps turnover low, which helps to minimise costs and achieve investment consistency.At the end of 2017, he conceded that he was struggling to find companies to buy in the current elevated markets, choosing instead to spend money on buying back the trust's shares. This should help to narrow the discount to net asset value, which was in low double digits throughout 2017 but approached 30 per cent at times during 2015 and 2016.David Liddell, a director of IpsoFacto Investor, an online investment advisory service, adds: 'Rights & Issues has a very concentrated portfolio so may not be for the fainthearted. It is a self-managed trust, which may raise queries about risk control. On the other hand the executive director and family seem to own about 15 per cent of the shares as per the last annual accounts � it is generally a good thing to have management interests aligned with shareholders.'
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Scapa Group PLC||15.42 %|
|Treatt PLC||13.27 %|
|Hill & Smith Holdings PLC||9.70 %|
|RPC Group PLC||8.84 %|
|Vp PLC||7.59 %|
|Colefax Group PLC||5.74 %|
|Macfarlane Group PLC||4.88 %|
|Electrocomponents PLC||3.67 %|
|Spirax-Sarco Engineering Plc||3.16 %|
|Menzies (John) PLC||3.05 %|
|United Kingdom||100.00 %|
|Basic materials||36.79 %|
|Consumer Cyclical||22.26 %|
Data provided by Morningstar.
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