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Rights and Issues (RIII)

Closed-end funds and OEICs
OllyDrod
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Rights and Issues (RIII)

#361219

Postby OllyDrod » November 29th, 2020, 4:41 pm

Rights and Issues (RIII) is on a wide ~10% discount and a z-score of -2. The charges are low, I like the look of the portfolio and the long-term performance is good. Anyone know why the discount has pushed out so far?
- OllyDrod

everhopeful
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Re: Rights and Issues (RIII)

#361453

Postby everhopeful » November 30th, 2020, 2:47 pm

UK smaller companies are generally out of favour. The AIC shows an average discount for UK smaller company ITs of above 7% and historically the discount on Rights and Issues has often been wider. The Z score only looks at last twelve months.

Lootman
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Re: Rights and Issues (RIII)

#361457

Postby Lootman » November 30th, 2020, 2:54 pm

OllyDrod wrote:I like the look of the portfolio and the long-term performance is good.

Be careful when you look at the long-term returns on this trust, because until 2016 it was a split capital trust, having both capital shares and income shares. Are the returns quoted prior to 2016 computed as some type of blended return? Or for one or other of the two share classes?

OllyDrod
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Re: Rights and Issues (RIII)

#361520

Postby OllyDrod » November 30th, 2020, 5:24 pm

Lootman wrote:
OllyDrod wrote:I like the look of the portfolio and the long-term performance is good.

Be careful when you look at the long-term returns on this trust, because until 2016 it was a split capital trust, having both capital shares and income shares. Are the returns quoted prior to 2016 computed as some type of blended return? Or for one or other of the two share classes?


Thanks for that - greatly appreciated. Will do some digging...
- OllyDrod

Aminatidi
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Re: Rights and Issues (RIII)

#405093

Postby Aminatidi » April 18th, 2021, 11:56 am

I was just reading a bit on RIII having seen it mentioned elsewhere.

10% discount which is the wider end of its range as you say.

No flashy factsheets but reasonable fees and the daily NAV seems to list the full holdings.

OllyDrod
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Re: Rights and Issues (RIII)

#405323

Postby OllyDrod » April 19th, 2021, 12:09 pm

Aminatidi wrote:I was just reading a bit on RIII having seen it mentioned elsewhere.

10% discount which is the wider end of its range as you say.

No flashy factsheets but reasonable fees and the daily NAV seems to list the full holdings.


I couldn't establish a rationale for the extended discount and purchased in December 2020. It's up around 15% since (but a rising tide lifts all boats...) The discount has come in slightly, but not materially. The holdings look well-positioned to benefit from a wider economic recovery - lots of industrials and commodities. Too soon to judge but I'm satisfied so far!
- OllyDrod


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