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
Name
Rights & Issues Investment Trust Ord
Manager
Discretionary Unit Fund Managers
Type
Closed Ended Investment Company
ISIN
GB0007392078
Sector
UK Smaller Companies
Launched
31/07/1962
OCF
0.45 %
3 Year Sharpe
1.42
Yield
1.3 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 178.01 million
NAV
2,328
Gearing
100
Discount Premium
-10
The Board’s objective is to exceed the benchmark index over the long term whilst managing risk. The Company invests in equities with an emphasis on smaller companies. UK smaller companies will normally constitute at least 80% of the investment portfolio. UK smaller companies include both listed securities and those quoted on the Alternative Investment Market (“AIM”). The investment portfolio will normally lie in the range of 80% to 100% of shareholders’ funds and therefore gearing will normally be between –20% and 0%. As a result of the Alternative Investment Fund Managers Regulations 2013 it has been decided that the Company will not use gearing.
Holding %
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 %
Region %
United Kingdom 100.00 %
Sector %
Basic materials 36.79 %
Industrials 36.07 %
Consumer Cyclical 22.26 %
Name
Discretionary Unit Fund Managers
Address
EC2R 8JR, London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Simon Knott
Joined 01/01/1984

Data provided by Morningstar.

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