Rights and Issues Investment Trust plc
Rights and Issues Investment Trust plc Back to Company
Investment Policy
INVESTMENT OBJECTIVE & POLICY
The Board’s objective is to exceed the benchmark index over the long term whilst managing risk.
The Company invests in equities with an emphasis on smaller companies. UK smaller companies will normally constitute at least 80% of the investment portfolio. UK smaller companies include both listed securities and those quoted on the Alternative Investment Market (“AIM”).
The investment portfolio will normally lie in the range of 80% to 100% of shareholders’ funds and therefore gearing will normally be between -20% and 0%. As a result of the Alternative Investment Fund Managers Regulations 2013 it has been decided that the Company will not use gearing.
In January 2021 the Board reviewed the performance of the Company in the context of the investment objective, the investment policy and the continuation of the Company. The Directors unanimously supported the continuation for a minimum period of five years to 2026.
STRATEGY FOR MEETING THE OBJECTIVES
The Board’s objective is to exceed the benchmark index over the long term whilst managing risk.
To achieve this objective, the Board continues with its long-term strategy of seeking out undervalued investments that have characteristics consistent with a matrix of criteria developed by the Investment Director. This is supported by the five-yearly review that addresses the above objective. The latest review was conducted in January 2021, which concluded that the continuation of the Company for the period until July 2026 was in the best interests of shareholders.
The Board fulfils its investment objective and policy by operating as an investment company, enabling it to delegate operational matters to specialised third-party service providers. The close-ended nature of the Company allows a longer-term view on investments and means liquidity issues as a result of redemptions are less likely to arise.
In pursuing its strategy, close attention is also paid to the control of costs. Further information on this is contained in the Key Performance Indicators on page 13.
INVESTMENT SELECTION
There is a rigorous process of risk analysis at the level of the individual investment, based on the characteristics of the investee company. This controls the overall risk profile of the investment portfolio, allowing a higher level of concentration in the investment portfolio.
In January 2021, the Board reviewed the levels of concentration within the investment portfolio and agreed with the Investment Manager that the portfolio would be refocused in 2021 to balance risk and improve performance.
The investment portfolio is managed on a medium-term basis with a low level of investment turnover. This minimises transaction costs and ensures medium-term consistency of the investment approach.
The Company’s investment activities are subject to the following limitations and restrictions:
The policy does not envisage hedging either against price or currency fluctuations. Whilst performance is compared against major UK indices, the composition of indices has no influence on investment decisions or the construction of the portfolio. As a result, it is expected that the Company’s investment portfolio and performance will deviate from the comparator indices.
Full details of the Company’s portfolio are set out on page 8 and further information is set out in Notes 8 to 11 inclusive.
AIFMD Directive
The Company has appointed Jupiter Unit Trust Managers Limited (“Jupiter”) to act as its AIFM. Jupiter is authorised and regulated by the Financial Conduct Authority (the “FCA”) as a “full scope UK AIFM” for the purposes of the AIFM Directive.
Non Mainstream Investment Products
The Financial Conduct Authority rules in relation to non-mainstream pooled investments do not apply to the Company.
Information and Forms
Financial Reports & Accounts
Company Announcements
All company announcements are available on the London Stock Exchange Regulatory News Service website
Click Here to View Company AnnouncementsCompany Statutory History & Filings
The Company’s statutory history and publicly available documents are available from the Companies House website here
Shareholders intending to vote using the online portal provided by the Company’s Registrars Link Group at www.signalshares.com will need their Investor Code, which is available on their share certificate or online account summary. Link Group will not be able to process any proxy votes electronically without this. In the event of queries please contact Link Group on 0371 664 0300 or, if calling from overseas, on +44 (0) 371 664 0391. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Link Group are open between 09:00 – 17:30, Monday to Friday excluding public holidays in England and Wales.
