Miton Uk Microcap Share Discussion Threads

[davebowler] 03/9/2020 09:33

01 September 2020, the unaudited Net Asset
Value per share of Miton UK Microcap Trust plc, managed by Premier Miton Asset Management
Limited, is:

With the portfolio valued on a fair value basis:

Including current period revenue to
01 September 2020 63.70p per ordinary share

[viking24] 19/8/2020 21:08

Some very interesting holdings moving up strongly. Avacta 1/2 holding left and moving up another 15% today

[jeffian] 13/8/2020 23:34

" If this is persistent then the trust will eventually be put out of its misery and shareholders get their money back at nav . "

Not necessarily, as Woodford showed. I raised the question because on another site someone is complaining that he exercised his redemption right in MINI and has been told he can't have his money until funds are realised from the sale of underlying assets. And the difference with Woodford is......?

[riverman77] 13/8/2020 21:15

I guess it's almost half way between open and closed ended structure. A couple of important differences - firstly, it's only once a year, compared with an open ended fund which has to deal with daily flows. Also, there is no immediate pressure to sell assets - I believe manager can take several weeks and not be forced to sell when there is no liquidity. This is different to funds - if they get a big outflow they have to meet that request the next day.

On your last point - if the trust is successful and popular it will trade close to nav and there will be no redemption requests (no point if it's already trading close to nav) . There are are several in that category. So annual redemptions only relevant when the trust trades at discount. If this is persistent then the trust will eventually be put out of its misery and shareholders get their money back at nav . I actually think this is far preferable to mediocre trusts trading at huge discounts for years and nothing gets done about it.

[jeffian] 13/8/2020 18:49

Thanks, riverman77. I still don't really get it though as it seems to negate the advantages of being an IT and add the disadvantage of an open-ended fund which has to sell underlying assets to meet redemptions! A lose/lose?

"The idea of these is to prevent the discount to NAV getting too wide - if it starts to get too wide, people will buy simply to capture the nav uplift." Well exactly! That's the way the market works. If it gets too cheap, people will buy it.

"The downside is if too many people redeem then the trust will shrink and have to be wound up." Exactly again! By adding the redemption option, it's not really an IT at all, is it?

[riverman77] 13/8/2020 18:14

Several investment trusts have annual redemption facilities - the opportunity to redeem at book value once a year. The idea of these is to prevent the discount to NAV getting too wide - if it starts to get too wide, people will buy simply to capture the nav uplift. The downside is if too many people redeem then the trust will shrink and have to be wound up. So only really works for popular successful trusts, but at least it stops them being stuck on a permanent discount.

[jeffian] 13/8/2020 17:51

Can someone explain to me why this "Investment Trust" has an "annual redemption facility"? It seems to defeat the whole object of IT's, whose shares have a market quite separate from their underlying investments. Is it actually a true IT at all?

[viking24] 22/7/2020 08:15

Another winner for Miton, their largest holding Avacta had another RNS out this morning !

[viking24] 20/7/2020 15:16

Worth remembering that SNG is a holding of The MicroCap Trust !!!

[viking24] 07/7/2020 12:32

Worth remembering MINI had a good position in Rockrose( just been bid for)

[the bull] 29/6/2020 23:47

How's everyone feeling now about this one. I have been looking into AIM funds for IHT purposes. Not actually ready to get into one yet, it's more of a plan should I pop my dutch footwear for the wife to do. I had heard of Miton as they have a holding in Jubilee Metals. I have a big holding their myself which I am sure will come good as it is really building for the future and making good profits. Miton only hold 1.9%

Anyone, added this to my watch list. I tend to do my own thing with AIM shares to be honest but it wouldn't harm to have a greater spread

[nordic1958] 24/4/2020 10:31

Great beta play on the small/ micro cap market.Discount to NAV

[topvest] 19/12/2019 13:48

I've sold my few. Very poor list of investments in this trust. Dead money for 4 years. Broke-even just!

[bones] 30/7/2019 09:06

It’s a vicious circle. They are having to sell down perfectly valid investments simply because AIM (in particular) and SmallCap indeces have been in a downswing since last October which in turn has spooked investors in small cap funds, and then pile the Brexit collywobbles on top of that to serve up more redemption requests.

When things are this bad it often signals a time to buy, so I will buy small caps now but it will never be through funds like this as I don’t pay people to make bad decisions, I only want myself to blame for poor performance and I don’t charge myself management fees!

[riverman77] 29/7/2019 18:46

Only skimmed through this but sounds like they'll struggle to redeem going forward. Stay well clear anyway. It's interesting that they blame the bad performance on its heavy UK focus, which I don't really buy, more like bad stock selection.

[konkel] 29/7/2019 14:03

This is a dog and it now has fleas!

[konkel] 29/7/2019 14:02

Miton UK MicroCap (MINI) has an annual redemption facility through which shareholders are entitled to request the redemption of all or part of their holding. The trust announced on 3 June 2019 that it received valid redemption requests for 14,317,907 ordinary shares for the 28 June 2019 redemption point (representing 9.4% of the issued share capital). The trust says that it expects to announce the redemption price on 1 July 2019 and, as it had previously noted, it had expected to dispatch the redemption monies by 12 July 2019. However, this will have to be delayed until mid-August.

Redemption delayed due to insufficient reserves
Ordinary shares may only be redeemed or purchased by the trust out of distributable reserves or the proceeds of a fresh issue of shares made for that purpose. The trust says that it does not currently have sufficient distributable reserves, given the size of the election and the impact of the financial year-end portfolio valuation. As a solution to this problem, MINI’s Board is proposing to cancel the trust’s share premium account to create additional distributable reserves. This should allow the trust to satisfy such redemption requests in full.

However, the cancellation of the share premium account requires the passing of a special resolution of the Company at a general meeting and the subsequent approval of the Court, and the intended timetable for these approval and the dispatch of monies is mid-August 2019. There is approximately £87 million currently standing to the credit of the trust’s share premium account. It says that it intends to publish a circular to convene a general meeting during the course of next week and this will also contain details on the timing of the Court hearings. The company says that it intends to fund the redemptions from existing cash resources.

[riverman77] 26/7/2019 13:09

Performance has been absolutely appalling over the past year - nav down around 25%, and discount widened to over 10%. I believe there is an annual redemption option here - so investors can get back at par if they choose. I'd imagine most investors will want to redeem so this trust will surely be wound up at some point - potentially a good discount play.

[pugugly] 11/3/2019 09:55

Taking a hammering since January - Bilby a disaster and now selling down SDI which is ratehr odd as many think SDI still has upside - Thoughts?

[belgraviaboy] 24/10/2018 08:05

YU. second largest holding here

[dmk1198] 22/11/2017 08:13

Miton bought IDP at £2.76It's now £1.88

[shavian] 22/11/2017 07:42

Gervais was an early supporter of Versarien (VRS), and has kept the faith. Watch out for an increase in NAV here and a widening of the discount before people wake up to this.

[luckymouse] 15/9/2016 13:24

This is moving nicely

[quepassa] 10/8/2016 21:58

"At some point".

What does that mean..........?

ALL IMO. DYOR.
QP