River And Mercantile Uk ... Share Discussion Threads

[mike the mechanic] 28/7/2020 11:15

Yes, RMMC is tarred by other small ITs and the wide buy/sell spread. Good to see movement today

[nimbo1] 28/7/2020 09:26

was buying this recently - decent underlying NAV performance and this is too cheap discount wise!

[a1samu] 04/2/2020 13:26

There should be something this fund manager should be able to do to narrow the gap between net asset value and share price like buy back shares if he is unable to pick winners, which the market believes by downgrading substantially the value here!

Discount or premium is an indicator as to the prospects of a fund.

This fund is habitually under performing and shareholders can only sell the shares at a massive discount!

The best solution would be to wind up this fund and return the monies to the shareholders.

This is a repeat of Woodford, the Manager having spent all of his cash, sitting om his hands, hoping something will turn up and in the meantime regardless his responsibility towards his shareholders, continues to charge them fees, costs, wages whatever he can get away with! The FCA should step in and liquidate hopeless situations like this, just like they have never done it with Woodford!

[skyship] 11/11/2019 12:48

Bought in today on a 13% discount after Farage decides not to contest the 317 Tory seats. Great news for Brexit and great news for a Tory victory in the GE.

[riverman77] 31/8/2018 13:27

Just bought back in here on a 8% discount by my reckoning. This seems to have stabilised now after the earlier wobble. The compulsory redemption mentioned above is one of the best things about this Trust in my view - fund managers are usually focused on making their funds as big as possible to maximise fees, to the detriment of performance. This fund has a cap of around 100m to ensure they can stay nimble, which is very refreshing. Investors can simply top up their holding if they want to maintain their exposure.

[mad foetus] 10/8/2018 10:05

i like the compulsory redemption, though would like the facility to convert into another R&M fund. The key point is that it is not in the manager's interest: they are on a percentage fee so a bigger market cap suits them. what it does is ensure that the focus remains on microcaps and does not drift to small caps. so i see nothing to complain about, and although the number of shares we hold declines, the overall value should not.

[petewy] 10/8/2018 09:53

Henry: I have had shares redeemed but not been paid although Corporate action says "around"
August 10th
Got paid later today.

[henryatkin] 30/7/2018 08:56

River and Mercantile UK Micro Cap Investment Company Limited

Completion of partial compulsory redemption and total voting rights

Pursuant to the River and Mercantile UK Micro Cap Investment Company Limited's (the "Company") compulsory partial redemption of its redeemable ordinary shares of no par value (the "Shares") announced on 11 July 2018, 5,506,817 Shares, approximately 10.6% of Shares in issue, were redeemed and cancelled on 27 July 2018 and, accordingly, 46,445,043 Shares remain in issue. The remaining Shares which have not been redeemed will trade under a new ISIN - GG00BZ8VFG05 (the "New ISIN"), which will be enabled and available for transactions from 8.00 a.m. today, 30 July 2018. CREST will automatically transfer any open transactions to the New ISIN.

It is expected that payments of redemption monies will be effected either through CREST (in the case of Shares held in uncertificated form) or by cheque (in the case of Shares held in certificated form) by 10 August 2018.

The above figure (46,445,043) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.

[tin5866] 15/7/2018 18:27

Thank you, westcountryboy.

Excuse my ignorance, but could the company not pay investors a 'special dividend' of some sort rather than cancel shares?
Surely, that would be more accretive for shareholders - a nice payout and still the same number of shares held...



I know I can't moan about the deal I signed up to, but still this is not nice reading:

"To the extent that any redemption takes place at a time when the Ordinary
Shares are trading at a significant premium to the prevailing unaudited NAV, Shareholders may receive an amount in respect of their redeemed Ordinary Shares that is materially below the market value of those shares prior to redemption."

[westcountryboy] 15/7/2018 15:20

The main question must be whether the managers have a portfolio and a skillset that is worth backing - and also whether you could do better in this particular part of the stockmarket universe by buying companies yourself. I like the smallcap sector and mostly buy for myself, but I think the managers here have a risk appetite and an eye for tech style growth opps which I don't have (and in any case don't have the time to acquire). So I like to have a small exposure to these sorts of shares through an additional holding here.

The question of compulsory redemptions seems to me rather a red herring. There won't be any unless the portfolio value grows. Currently you are only losing 10% of your holding, though I agree that it would be better to keep them all if the company was happy to do that. I would wait to buy more until the discount widens again - there are bound to be opportunities sooner or later!

[tin5866] 15/7/2018 15:05

Having bought this a few months back - when the discount seemed irrationally large - I am wondering if there is much point in continuing to hold it.

Compulsory redemption means number of shares held reduces.

Buying some more shares means more dealing costs (and shares now more expensive as discount has narrowed - although accepting that share price could go the other way as well).

Compulsory redemption is also a nice payday for the manager (performance fee triggered).

Any future compulsory redemption (always at NAV) could be when NAV is well below share price.

Company will never pay dividends.

[westcountryboy] 13/7/2018 19:58

The shares are redeemed at the stated price so you are deemed to have sold them at that price and obviously you then have fewer shares. What the share price subsequently does is up to the market. The share price has been depressed recently for other reasons, to do with the forced change of management - perhaps unreasonably (I think so anyway). In the recent past RMMC traded at a premium to NAV which was probably also unreasonable. In general I think a discount of 5-10% to NAV is the most likely share price outcome going forward, assuming the market gets more comfortable with the new management's performance.

[dragonsteeth] 13/7/2018 16:08

Excuse my ignorance but this “Redemption221; is a new one on me, I’m more used to share buy backs . So the share price goes up , then at a certain date 10% approx of shares/ NAV is redeemed and the proceeds paid to shareholders of record. Presumably the share price will fall back close to price a few days ago but we receive extra money? Is that about right, thanks ?

[tin5866] 12/7/2018 12:00

Tipped by Questor in Telegraph.

[watchlist1] 12/7/2018 10:08

Partial compulsory redemption at 216p probably why

[petewy] 12/7/2018 09:49

Why the rise? Someone press the wrong button.

[nimbo1] 21/5/2018 16:08

agree with you, bought a load this am.

[luckymouse] 14/5/2018 17:56

Seems cheap

[eh9] 23/4/2018 11:50

Numis 370p price target 23/4/18

[eh9] 10/3/2018 17:28

hTTps://www.telegraph.co.uk/investing/funds/willing-take-punt-outcome-brexit-trust-one-portfolio/?li_source=LI&li_medium=li-recommendation-widget

[petewy] 22/2/2018 20:10

It had a sell rating by Questor today..

[mad foetus] 22/2/2018 16:35

Sorry...I suspect Rodrigs will turn up elsewhere. Polar seem to be getting a lot of good young managers at the moment (Rushton and Hamilton and Godber spring to mind). I sold most of mine here at 230 but liquidity meant I couldn't shift them all. Whatever he was doing, it is not good for R&M as he was their star performer.

[mad foetus] 22/2/2018 16:33

Discount looking chunky though, could be a time to buy in.I suspect