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Rights & Issues
Bellabeck
Posted: 09 November 2017 14:29:18(UTC)
#1

Joined: 15/03/2016(UTC)
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Just seen this interview with manager Simon Knott, this It has not been on my radar before (have HSL and DIVI) but looking to diversify for one son's ISA and his share of UK smaller companies

http://citywire.co.uk/in...nsider-latest-news-list

any comments peeps?

Ermintrade
Posted: 09 November 2017 15:48:54(UTC)
#2

Joined: 27/09/2010(UTC)
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Simon Knott has got a tremendous record. And Rights and Issues is at a 12% discount which he says he is trying to narrow by share buybacks. So those are the plus points.
At a macro level I think all UK equity funds are going to be very volatile until the fog clears around BREXIT. You might be able to buy it cheaper over the next year or two. My personal action has been to keep my UK equity focussed shares and funds below 20% of my portfolio, for the time being.
4 users thanked Ermintrade for this post.
Micawber on 09/11/2017(UTC), Bellabeck on 09/11/2017(UTC), Sara G on 09/11/2017(UTC), Jim S on 10/11/2017(UTC)
Mickey
Posted: 09 November 2017 16:14:48(UTC)
#3

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I took a look at Rights & Issues again after the interview, still prefer Henderson Smaller Co's on the larger discount.
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Keith Cobby on 09/11/2017(UTC), Bellabeck on 09/11/2017(UTC)
Keith Cobby
Posted: 09 November 2017 16:52:20(UTC)
#4

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Like Mickey I also had another look and although performance has been very good it is on a par with several other trusts in the sector. My long term hold is HSL.
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North Star on 09/11/2017(UTC), Mickey on 09/11/2017(UTC)
Alan Selwood
Posted: 09 November 2017 23:45:15(UTC)
#5

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Have some Rights & Issues. Strong performance over a period.

Currently have some BlackRock Smaller Cos IT too.

Would normally have Henderson Smaller Cos, but got tempted by the big discount on Henderson Opportunities Trust, which is now creeping up again after dropping slightly after I bought it. A pity it's so small and therefore prone to liquidity issues.

Should have also bought Independent Investment Trust, or followed micawber into Blue Prism, their best performer! Sadly, IIT is now at a premium!

Given the low discounts or slight premiums at the moment on many ITs, I am tending to concentrate more on individual companies at the moment. Like Big Boy I do find myself drawn to big discounts if the IT concerned is in the sector I want, at the price I'm prepared to pay, and with a quality manager and track record. Otherwise it's direct equities, apart from Fundsmith Equity Fund.

3 users thanked Alan Selwood for this post.
Micawber on 10/11/2017(UTC), Mickey on 10/11/2017(UTC), Jim S on 10/11/2017(UTC)
J E
Posted: 10 November 2017 09:05:10(UTC)
#6

Joined: 05/10/2014(UTC)
Posts: 1

He ought to be judged against the relevant benchmark which in his case is the FTSE Fledgling. Look here https://www.investing.com/indices/ftse-fledgling and click for chart for maximum time frame. As you can see it has gone up near 10 fold since late 90s and has had a tear recently (as has RIII ).

I am reminded of John Lee in the FT who has a great record but the FT writers wont acknowledge he is also a fledgling cap guy and that index has been a non widely remarked upon phenomenon.

The point is if you allocate money to a Fledgling investor, if he tracks (or in RIII case underperforms) that sector, is that to your credit as an investor picking that fund or the managers for just following his mandate within the sector?

I am reminded also of the Asian investment trusts that judge themselves incorrectly against various Asian indexes but those are woefully misrepresentative of what the fund managers say they invest in. EG Aberdeen Asian smaller companies and Scottish Oriental invest in small cap value in Asia... I follow many similar open ended (non UK listed) funds in same space and their total returns are all very similar and all look brilliant to the broad Asian indexes but the real judgement call there was the investor picking a fund that invested in small cap Asian value not the manager just investing there.

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