Rights & Issues Investment Share Discussion Threads

[essentialinvestor] 18/11/2023 15:42

Would hope for £19 plus on the bid shortly, £22 plus sometime in 2024.

[essentialinvestor] 17/11/2023 12:52

Some nice recent NAV progression.

[coolen] 15/11/2023 22:00

Some of Simon Knott's "value" stocks are suddenly looking healthier. Not impressed yet with new manager Jupiter's stock selection.

[essentialinvestor] 15/11/2023 16:00

Bought back in yesterday and earlier today.

[essentialinvestor] 22/9/2023 12:47

Sold at 18.80 as better value on in other UK smaller company IT's.

[essentialinvestor] 06/9/2023 16:03

Added a few at 18.35.

[essentialinvestor] 19/7/2023 21:44

Some of their new additions have been woeful performers on a 12 month basis
and that is being kind - Spirent, TEL, OSB ...

[coolen] 13/4/2023 17:06

From the list, seems that perhaps Jupiter are replacing Simon's "value" stocks, which have done him so well over the years, with "growth" stocks ?
Is the jury still out, hence the substantial discount ?

[essentialinvestor] 13/4/2023 16:04

Getting a bit of attention.

[essentialinvestor] 12/4/2023 12:03

Having located the last annual report I have a better view of what they currently hold.

Bought a small amount.

[essentialinvestor] 11/4/2023 16:32

I can't appear to find an up to date fact sheet?.

[topvest] 07/6/2022 19:00

Disappointing news today, but inevitable I suppose after 39 years. Seems to have found a team prepared to take on the rather exclectic portfolio and stick to the hopfully winning do virtually nothing approach - just the odd "add" and "top-slice"! I'm surprised its Jupiter, but it's down to the individual team at the end of the day and Simon Knott is staying on as a NED to make sure they stick to their side of the bargain.

[topvest] 30/1/2021 13:48

8m Scapa and 4.25m Treatt at the end of 2019. Happy days!
The Scapa bid at 210p is not great though - lower than the 2019 and 2018 valuation.

[coolen] 27/1/2021 19:04

Today, Scapa is up +20% on a bid; Treat up +20% on a trading statement earlier in the week.

What chunk of RIII's portfolio do these two stocks account for?

[the monkster] 01/7/2020 11:55

hes stuck in treatt and scapa. both doing nothing.

[napoleon 14th] 29/6/2020 15:21

Wins title of "Quietest thread on advfn"!

[ifthecapfits] 18/12/2018 15:05

Looks interesting this one. On the watch list.

[spangle93] 15/7/2018 11:27

Recommended IT as "lesson learned from the World Cup" in D Tel Sat 14th (small can be winners)

[bigwilly1986] 08/8/2017 18:37

I always wanted to buy this, but was put off by the more complex structure. As I have just noticed the changes, I am now in!

[coolen] 27/7/2017 01:07

wtacraig, well spotted !!

[wtacraig1] 26/7/2017 16:34

Money Observer has this as their annual tip in the adventurous UK Smaller Companies trust category .

[nimbo1] 07/5/2017 19:08

This gem of a fund is a well-kept secret

By: David C Stevenson
05/05/2017
0 comments
Value investors are an odd, difficult bunch. It’s in their nature to be a bit cussed and contrarian. They’re also usually very individualistic and secretive, which I suppose goes with the profession. If you find a true gem of a stock, trading at below its “intrinsic value”, your first instinct is to keep mum and not tell the world. Hence tracking down reputable value managers is a bit like hunting down gems in the investment rough. You’ve got to ask around among other value nerds for clues, while also digging into boring reports and accounts.

Simon Knott is one example of an elusive value manager. Search for his most established fund, the Rights & Issues Investment Trust (LSE: RII), and you’ll encounter… well, very little. The truly diligent could comb through the trust’s regulatory news service releases to understand more about it – but you can save yourself a lot of bother by making use of the excellent fund summary available via Kepler Partners’ investment trust intelligence service.

The Kepler report on RII is a very good summary and rings true with the accounts I’ve heard from other value fund managers. Their message is simple. If you want to invest in small UK stocks, it’s worth having a look at this trust.


RII focuses on small caps and is very concentrated in a small number of key holdings (the top-ten holdings account for 83% of the portfolio’s total net asset value (NAV)). Portfolio turnover is low (2% on one measure), which indicates a high degree of long-term conviction in the portfolio. The trust has a market cap of around £188m and a current dividend yield of around 1.5%. It is the cheapest member of the AIC UK Smaller Companies sector, with an ongoing charge of 0.59% and no performance fees.

Knott has run the RII since 1984, and owns 5.13% of the voting shares, while his family owns 15% in total. As with so many of his value-investing peers, Knott’s forte is picking ignored stocks where he can visit the management and get up close and personal. Top holdings in the fund include bonding and adhesive manufacturer Scapa Group, and chemicals company Treatt, which specialises in fragrances and essential oils. Over the past 20 years the trust has delivered a NAV return of 2,053%, compared with returns of 577.5% and 485.9% from the Numis Smaller Companies ex-Investment Companies index and the AIC UK Smaller Companies sector respectively.

Given these numbers, you’d have thought the board would have done some marketing. They haven’t. This reluctance to shout about the fund has meant that the discount has gyrated around violently and is currently at around 12%, after some fairly heavy share buybacks and the Brexit-induced small-cap sell-off. To make matters even more complicated, the fund used to boast a two-tier structure with capital and income shares, but that’s been quietly phased out now.

This trust will be a volatile ride, its shares aren’t heavily traded (in fact, it’s the second least-traded small-cap trust) and it’s run by a board and a manager with a vampire-like aversion to marketing. But if you can get past this, you’ll get an experienced stockpicker with real expertise, skin in the game, a great track record, and low charges.