Chelverton Uk Dividend Share Discussion Threads

[my retirement fund] 07/1/2018 15:20

Interesting article. With 1.9% charge they are clearly going to expand AUM at all costs. Looms like its going to become a perpetual share printing and placing machine.

[speedsgh] 07/1/2018 10:32

Chelverton Small Companies crushed after fund-raise flop -

[topvest] 07/1/2018 09:54

Well they timed the issuance wrong - too late in the cycle. Hardly a disaster as they covered the costs no doubt. They just need to carry on doing what they have been and stop being greedy for more AUM. Its not the right time to be buying small caps. Its the right time to be top-slicing. They have done well for me since buying in 2009.

[my retirement fund] 06/1/2018 23:56

Total disaster here, imo the fund looks overpriced now. Now the City has told them where to stick their fund raising begging bowl and all things considered including the large gearing and eyewatering charges this fund needs to merge with some other or wind itself up imo.

[pjw956] 08/12/2017 20:41

yes - it seems that the manager is frustrated that the fund is not over £100m and this would be a quick way to jack up the total.. but as a holder I would want more incentive(discount) to warrant purchasing more - otherwise would wait to buy at discount to nav in the market anyway ?...... depending upon market conditions ..personally the whole market seems expensive at the moment... but who knows?

[novision] 08/12/2017 12:30

response seems pretty lukewarm from what I've read.

[topvest] 05/12/2017 21:22

I'm giving it a miss. Happy to hold, but now is not the time to be buying small cap investment trusts. Bought these in 2009. That was the right time!

[pjw956] 05/12/2017 21:17

so , on balance , thoughts on taking up the new 'c' class shares ..anyone?

[jimgt] 05/12/2017 14:58

From the C Share application form:

The conversion of the C Shares into ordinary Shares will be triggered following the earlier of: (i) 90 per cent. of the net proceeds being invested or committed; or (ii) the date six months after the date of admission.

The C Shares will convert into new ordinary shares by dividing the net asset value per C Share by the net asset value per Ordinary Share

[i like beer] 05/12/2017 13:45

Does anyone know the conversion ratio for the c issue subscription shares?

[oshy92] 28/11/2017 13:31

Afternoon. Short TV interview with David Horner:

www.fmp-tv.co.uk/company/chelverton-investor-video/

[skinny] 27/11/2017 07:50

NAV _________

[skinny] 27/11/2017 07:49

Placing, Intermediaries Offer and Offer for Subscription of C Shares

and

Issue of ZDP Shares in connection with the recommended proposals for the reconstruction and winding-up of Chelverton Small Companies ZDP PLC and Placing of ZDP Shares

and

Placing Programme of Ordinary Shares and ZDP Shares

Publication of a Prospectus


Further to the announcement on 6 November 2017, the Company announces that it has published a prospectus (the "Prospectus") in relation to:

· an offer of C Shares comprising a maximum of 75 million C Shares to be issued at the Issue Price of 100 pence per share through a placing (the "Placing"), Intermediaries Offer and Offer for Subscription (together, the "Issue");

· an issue of up to approximately 30 million ZDP Shares pursuant to a rollover offer ("Rollover") and ZDP Placing ("ZDP Placing") which will involve the liquidation of Existing ZDPCo and issuance of new 2025 ZDP Shares ("ZDP Shares") by SDV 2025 ZDP PLC ("2025 ZDPCo") (together, the "ZDP Issue"), a wholly owned subsidiary of the Company (the "Scheme"). 2025 ZDPCo will issue ZDP Shares at the ZDP Issue Price of 100 pence per ZDP Share; and

· a Placing Programme of up to 30 million Ordinary Shares (the "Placing Programme") and 7.5 million ZDP Shares (the "ZDP Placing Programme").


The ZDP Shares will have a life of 7.3 years and will have a Final Capital Entitlement of 133.18 pence per ZDP Share on 30 April 2025, equivalent to a gross redemption yield of 4 per cent with an initial target cover ratio of circa 3.75x, subject to the level of take up of the Issue and rollover elections received pursuant to the Scheme.

The C Shares will convert into Ordinary Shares on the basis of the Conversion Ratio calculated at the Calculation Date. Details of the terms and timing of conversion can be found in the Prospectus. The existing investment objective and policy will remain unchanged and the Company intends to use the Net Proceeds of the Issue to add to existing holdings and to make new investments.

The Company has also published a circular (the "Company Circular") today convening a General Meeting to propose resolutions to grant the directors the power to allot the C Shares pursuant the Issue, disapply existing statutory rights of pre-emption in relation to the Issue and Placing Programme, grant the power to allot New Ordinary Shares pursuant to the Placing Programme, approve amendment to the Existing Articles, grant the Directors the power to allot Ordinary Shares, and renewal of the authority granted to the Company to buy back its Ordinary Shares in the market.

Existing ZDPCo has published a circular ("Existing ZDPCo Circular") today convening general meetings of Existing ZDPCo to approve the Scheme and to place Existing ZDPCo into members' voluntary liquidation.

The Company will provide a further update in due course, as appropriate.

Publication of documents

The Prospectus and Circulars will shortly be available for inspection at the National Storage Mechanism ( and also on the Company's website ( subject to applicable securities laws, and are available for viewing at the Company's registered office at Springfield Lodge, Colchester Road, Springfield, Chelmsford, CM2 5PW.


Expected timetable

General Meeting of the Company
9.00 a.m. on 12 December 2017
First General meeting of Existing ZDPCo
9.15 a.m. on 12 December 2017
Latest time and date for commitments under the Placing
12.00 p.m. on 15 December 2017
Announcement of the result of ZDP Shares to be issued pursuant to the Scheme
8.00 a.m. on 19 December 2017
Latest time and date for receipt of completed applications from Intermediaries in respect of the Intermediaries Offer
11.00 a.m. on 21 December 2017
Latest time and date for receipt of completed Application Forms in respect of the Offer for Subscription
11.00 a.m. on 21 December 2017
Announcement of the results of the Placing, Intermediaries Offer and Offer for Subscription and the number of C Shares to be issued
8.00 a.m. on 22 December 2017

Announcement of the number of ZDP Shares to be issued pursuant to the ZDP Placing
8.00am on 5 January 2017
Effective Date for the Scheme
8 January 2018
Initial Admission and Initial ZDP Admission and dealings in C Shares and ZDP Shares issued in uncertificated form commence
8.00am on 8 January 2018
CREST accounts credited with uncertificated C Shares and uncertificated ZDP Shares
8 January 2018
Definitive share certificates in respect of C Shares and ZDP Shares dispatched by post in the week commencing
15 January 2018


Placing Programme and ZDP Placing Programme opens
9 January 2018
Latest date for issuing Ordinary Shares and ZDP shares under the Placing Programme and the ZDP Placing Programme respectively
23 November 2018


(i) All times and/or dates in the Expected Timetable set out above and in the Prospectus generally may be subject to adjustment
(ii) Any changes to the Expected Timetable set out above will be notified by the Company through a Regulatory Information Service.
(iii) All references to times above and in the Prospectus are to London time.

[carterit] 07/11/2017 17:36

These have done amazingly well for me (up 130% since i first invested),and i have auto reinvestment of dividends. quepassa mentioned HRI,but i like my investment trusts to pay a dividend,which i auto reinvest and have done over the last 6 years with the trusts in my portfolio. I aim for round about 4%,and have about 20 trusts now. I do have some ASCI as well. A couple pay lower than this,but several are paying more. I just want to be able to buy and hold and not have to worry about the cyclical ups and downs which hit the markets from time to time.With decent dividend paying stocks,if there is a pull back at any time,at least you have the benefit of having mor of them over a period of time. Over the last 6 years,i have probably just about trebled the value of the trusts i hold,and the number of shres increased by about 30%,without actually having to actively go out and buy any more.

[skinny] 06/11/2017 07:57

As previously announced by the Board on 13 January 2017, the Directors have been considering the options for a refinancing of the Zero Dividend Preference shares, which are due for final repayment on 8 January 2018. In light of the Company’s strong and sustained track record as well as the availability of attractive investments, the Board believes that it is an appropriate point to seek to increase the size of the Company and raise additional capital. Accordingly, the Company is proposing an issue of C shares through a placing, intermediaries offer and offer for subscription of C Shares as well as an issue and placing of new ZDP Shares in connection with recommended proposals for the reconstruction and winding-up of Existing ZDP Co (collectively, the “Issue”).

The Company is seeking to raise up to £75 million new Ordinary shares, subject to market conditions and there being sufficient investor appetite for the C shares on agreeable terms. In addition, the Company will seek to issue c. £30 million of new ZDPs, on a term of 7.3 years with a gross redemption yield of 4.00 per cent. with an initial target cover ratio of circa 3.7x, subject to the level of rollover elections received. The existing investment objective and policy will remain unchanged and the Company intends to use the Net Proceeds of the Issue to add to existing holdings and to make new investments.

The Company will provide a further update in due course, as appropriate.

[skinny] 01/11/2017 14:57

The Company announces:

Total Assets (including unaudited revenue reserves at 31/10/2017) of £60.08m

Net Assets (including unaudited revenue reserves at 31/10/2017) of £47.43m

The Net Asset Value (NAV) at 31/10/2017 was:

Number of shares in issue:
Per Ordinary share (bid price) - including unaudited current period revenue* 266.84p 17,775,000
Per Ordinary share (bid price) - excluding current period revenue* 262.52p
Ordinary share price 266.50p

Premium / (Discount) to NAV (0.13)%
Ordinary shares have an undated life
ZDP share 135.30p 9,349,000
ZDP share price 137.00p
Premium to NAV 1.25%
ZDP shares are held in a subsidiary and have a redemption date of 08/01/2018

*Current period revenue covers the period 01/05/2016 to 31/10/2017

Name of company % of portfolio
1 Diversified Gas & Oil Plc Ordinary 1p 2.78
2 McColl's Retail Group Plc Ordinary 0.1p 2.39
3 Jarvis Securities Plc Ordinary 1p 2.35
4 StatPro Group Plc Ordinary 1p 2.29
5 Acal Plc Ordinary 5p 2.12
6 Belvoir Lettings Plc Ordinary 2.11
7 Alumasc Group (The) Plc Ordinary 12.5p 2.06
8 Gattaca Plc Common GBp1 2.04
9 Galliford Try Plc Ordinary 50p 2.04
10 Personal Group Holdings Plc Ordinary 5p 2.03
11 Connect Group Plc Ordinary 5p 1.84
12 Amino Technologies Plc GBp 1 1.83
13 Braemar Shipping Services Plc GBp 10 1.80
14 Numis Corporation Plc Ordinary 5p 1.79
15 Curtis Banks Group Plc GBp0.5 1.78
16 Marston's Plc Ordinary 7.375p 1.78
17 Ramsdens Holdings Plc Ordinary 1.78
18 Brown (N) Group Ordinary 11.052p 1.76
19 De La Rue Plc Ordinary 44.868p 1.75
20 Mucklow (A&J) Group Plc REIT 25p 1.64

more.....

[quepassa] 18/10/2017 15:56

But don't forget to look at Herald Investment Trust which is at a vast discount and which has been recently performing fantastically. 800p to 1150p in a year and still set to run further
Major scope for further tightening of gaping discount.

also highly likely to enter FTSE250 soon.

[davebowler] 18/10/2017 15:39

Aberdeen Smaller Cos Income Trust NAV Undiluted Including Income 327.82p whereas the share price is 278p

[davebowler] 11/8/2017 13:14

SDV at 2% discount to NAV and ASCI at 20%, makes a compelling case for a swap.

[pjw956] 02/8/2017 21:30

brsc is well worth a look too... imho.

[davebowler] 02/8/2017 15:55

Winterfloods;
Aberdeen Smaller Companies Income is differentiated within the UK Small Cap sector by its fixed income portfolio, which broadly offsets its c.10% gearing and boosts income. The fund also has a relatively focused portfolio of 45 stocks, although it remains diversified with less than 30% invested in the top 10 holdings. Other than its stable-mate, Dunedin Smaller Companies (79%), the fund’s highest portfolio overlap with peers is just 16%. With the impending merger of Aberdeen AM and Standard Life it is worth noting that Aberdeen Smaller Companies Income and Standard Life UK Smaller Companies* are differentiated by their investment approaches, with the latter focusing on growth, and just a 10% overlap between the two portfolios.

· Focus on quality businesses has delivered outperformance – The managers, Jonathan Allison and Ian Hewett, aim to invest in companies with strong management teams and balance sheets that are generating high returns on capital. The fund’s NAV has outperformed its benchmark, the FTSE Small Cap ex Investment Companies Index, over the last one, three and five years and has also outperformed the UK Small Cap peer group over the last three and five years. Perhaps more importantly, since Jonathan Allison and Ian Hewett took charge of the fund in March last year, the NAV has outperformed both the benchmark and the UK Small Cap peer group.

· Attractive yield – The fund has a historical dividend yield of 2.8%, based on the current share price, and was 1.07x covered by revenue in 2016. The yield, which is boosted by the fund’s allocation to fixed income, is at the higher end of the small cap peer group. Dividend growth has been above 3% in each of the last four financial years and the fund also benefits from a revenue reserve equivalent to 1.4x aggregate dividends in FY2016.

· Discount wider than peers – The fund’s discount is currently around 20%, which is at the wider end of the UK Small Cap peer group. It is broadly in line with its 12 month average, but over the period the discount has ranged between 17% and 25%. In June the differential in discount level between the fund and the UK Small Cap peer group reached its highest level in the last five years, and, although it has since narrowed, it still remains significant.





Winterflood View

Aberdeen Smaller Companies Income has a solid performance record, with outperformance of both its benchmark and peer group over the last five years. However, the focus on quality makes it likely that the fund would lag in rapidly rising markets. In terms of its market capitalisation the fund is at the smaller end of the peer group and so liquidity can be patchy. However, we believe that the 2.8% yield is attractive and the 20% discount offers value, both in absolute terms and also relative to the fund’s small cap peers. Given the relatively small size of the fund, performance is likely to be the key driver of any re-rating rather than share buybacks. It is also possible that there could be some discount tightening in the lead up to the fund’s next continuation vote, which is due in 2020 and is held every five years.

[quepassa] 01/8/2017 22:16

Got ahead of itself and was trading at par or even at a premium to NAV. Became "expensive".

Whereas HRI was behind with a massive discount of 18% which is now narrowing.


ALL IMO. DYOR.
QP

[pjw956] 01/8/2017 21:29

flat ...somewhat odd ... why so flat for so long

[quepassa] 26/7/2017 14:13

Whilst SDT flat, Herald Investment Trust up another 1.5% today.

ALL IMO> DYOR.
QP