Invesco Perpetual Uk Sma... Share Discussion Threads

[brwo349] 04/10/2024 11:27

I added another 1k at 414p this morning. I expect this is an autumnal lull and the shares will be 5%-10% higher by the end of the year.

Let's see what happens next week when the tender proceeds start rolling in. I think some will be buying back in. After all you'll be getting 485p a share for those tendered and can now buy in again at about 420p.

[bitgold] 03/10/2024 17:42

Not necessarily. Uk was heavily out of favour 2010s, while other areas like Asia had low discounts. We just need a government that introduces some harmful policies and that doesn’t seem too far away

[essentialinvestor] 02/10/2024 08:56

* unlikely to fall to a 20% discount unless we see some sharp equity market declines.

[bitgold] 02/10/2024 08:37

Mine too, 2wild. what I see with IPU is that next week 10% of the shareholders will be redeemed at almost full NAV. After that cloud has cleared, we will see the true NAV for the remaining shareholders and depending on how it looks, I could even see a further fall below 400p and 20% discount.

I remain hopeful that I will get a lot more than 10% due to the way nominee accounts work, but let's see.

[2wild] 01/10/2024 21:27

citytilidie Sounds like a good Plan,although I don't think IPU will do another one next year. I think they did it to pass the continuation vote and the next one is in 2027.

Accumulating investment trusts on large discounts is a hobby of mine, so the wider the better.

[citytilidie] 01/10/2024 17:11

To me it doesn’t make much difference if you were fortunate to be in before the special dividend. Buy back in again when you get it, and go for the special dividend again next year. Within 2 years the investment trust will be that small anyway, they will almost certainly redeem the whole lot at NAV by Oct 26. That will work out at an excellent yield over 2 years

[bitgold] 01/10/2024 13:40

it could easily get cheaper. Many of the UK smaller companies trusts were on 20-25% discounts during the Brexit period and were great bargains, as 2wild said, labour are hardly displaying confidence or competence so far and a domestic trust like this could get clobbered.

Once the smoke clears after the dividend tender distribution, let's see if it's worth getting back in.

[brwo349] 01/10/2024 11:47

so nav down 0.7% to 497p and the discount is over 15%. The reason i was surprised was the market is up today so why is this down 1.5%-2% when it already looks cheaper than other smaller companies trusts. I've bought 4K today so far.

[2wild] 01/10/2024 10:40

I think you mean Friday's closing nav. Yesterday's will be around 1% lower. Certainly has come in a lot. Briefly fell below 10% on the day before going Ex dividend. I think it's down to uncertainty over the forthcoming budget. Labour really have blow in the honeymoon period banging on about this £22 billion deficit, without giving any indication how to resolve it. So people just fear the worst.

[brwo349] 01/10/2024 08:15

whats going on? Ive just bought at 420p which is a 16% discount to yesterdays nav.

[bitgold] 20/9/2024 17:59

Not so. If you are in a nominee with one of the big brokerages, as most of us are, then may get up to 100%. It depends if your fellow investors participated or not. I am hoping for 100%, but realistically expecting 70-80%.

I'm not impressed with their long timeline, nor doing a dividend tender. It being dividend-based could mean more of the smaller investors not participating, due to the way personal dividend taxes are. JEDT did a share tender offer and that was announced later than this and got finalised 10 days ago.

[brwo349] 20/9/2024 16:54

We just did not have enough information to work out the percentage return.

If everyone tendered all their shares then everyone would get 10%
However if 50% tendered all and 50% tendered 10% then everyone would still get 10%.

So it's impossible to work out without more information. As it turns out if you tendered all you will get your 10% plus 7% of the remaining 90%

[hericsaba] 20/9/2024 16:43

8th of October, as we can read clearly in the RNS

[andyj] 20/9/2024 03:43

Do we know when payout day is?

[bitgold] 19/9/2024 14:11

if you're in a nominee account, like ii, hl or bell, we won't know what we get until after payout day. If lots of your fellow nominees didn't participate, you might even get 80-100%. Let's see.

[brwo349] 19/9/2024 11:13

Is this what people were expecting. I need to sit down and work out where 7% excess on the basic entitlement comes from. I thought it was to be more than this.


Invesco Perpetual UK Smaller Companies Investment Trust PLC

Result of Special Dividend Offer



Further to its announcement of 20 August 2024, the Board of Invesco Perpetual UK Smaller Companies Investment Trust PLC (the "Company") announces that the Special Dividend will be £4.8485 per Share, which represents 97.5 per cent. of the Net Asset Value per Share (rounded down to four decimal places), calculated in accordance with the terms of the Special Dividend Offer described in the circular published by the Company on 19 July 2024 (the "Circular").

The Company received valid elections to receive the Special Dividend on 12,450,915 Shares. This represents 36.8 per cent. of the Company's issued ordinary share capital (excluding treasury shares) as at the Special Dividend Record Date. As this percentage exceeds the aggregate 10 per cent. cap under the Special Dividend Offer, the Company has scaled back elections in accordance with the process described in the Circular.

Following scaling back:

Each Shareholder who validly elected to receive the Special Dividend on a number of Shares that is equal to or less than their Basic Entitlement (being such number of Shares, rounded down to the nearest whole number, as represents 10 per cent. of the Shares they held as at the Special Dividend Record Date) will have their election satisfied in full.
Each Shareholder who validly elected to receive the Special Dividend on a number of Shares greater than their Basic Entitlement will receive the Special Dividend on such number of Shares as is equal to their Basic Entitlement plus approximately 7.0 per cent. of their Individual Excess Election (rounded down to the nearest whole number of Shares).
In aggregate, the Company will pay the Special Dividend on 3,382,648 Shares[1]. Accordingly, the total amount to be paid by way of Special Dividend will be £16.4 million.

As described in the Circular, the Shares on which the Special Dividend is paid will be cancelled for no payment pursuant to the Reduction of Capital. Assuming no Shares are issued or repurchased by the Company between now and the Reduction of Capital Effective Date, the total number of Shares remaining in issue after the payment of the Special Dividend and Reduction of Capital will be 30,444,281 Shares (excluding treasury shares). The Company currently holds 19,382,155 Shares in treasury.

The implementation of the Special Dividend Offer remains conditional on the Court's approval of the Reduction of Capital, the hearing for which is scheduled for 24 September 2024. An announcement of the results of the Court hearing will be made once known.

Capitalised terms used in this announcement shall have the meaning given to them in the Circular.

[2wild] 18/9/2024 11:14

Spot on bitgold. A bit disappointed Uk market sold off first few days of Sep. Although statistically September is worst month for equities, so could have been worse. Hopefully they will remain subdued until we get cash returned in 3 weeks. Will be interesting to see if much difference in % allocation between my II ISA & SIPP.

[bitgold] 18/9/2024 10:16

this morning NAV is 497p, so should mean a distribution of about 485p with the dividend tender. That will do me, as I see dark times ahead for the UK. Let's hope for a good percentage return given that a lot of people chose not to participate.

[2wild] 02/9/2024 23:20

Yes just 2 weeks to go. Luckily 1 day before FED and 2 days before BOE interest rate decisions, Which have scope for disappointment. 6 weeks before UK budget. Looking good for 500p to 510p,returning next month.

[bitgold] 02/9/2024 18:25

NAV is looking great for the special dividend tender. Let's hope it holds until valuation date for the distribution - I can see the Labour honeymoon ending soon.

[2wild] 02/9/2024 13:32

6 Month Performance
NAV 29 Feb 24: 458.17p
NAV 30 August: 520.05p
Dividends paid 5.41p May, 3.5p August.
Total 528.96p up 15.45%

[2wild] 25/8/2024 17:38

Nice trade. I Previously held. shell, Rio, GSK, HSBC, and Phoenix. As they are now all in the CT UK high income top 10, I sold them on up days and reinvested into CHIBB on around 12% discounts.

I like the changes made by the new manager Over last 12 months. CHIB now my 2nd largest holding after IPU

[carpingtris] 25/8/2024 16:16

I didn't tender anything... happy to continue holding 👍

[brwo349] 25/8/2024 13:04

Yes the discount was often 15% or more.

IPU still looks cheap to me on a 13% discount and CHIB is on a 12% discount and a 6.6% yield. I'll be looking to top up both next week.

[2wild] 24/8/2024 20:23

Well done brwo, did you buy Invesco Select Trust on a wide discount?