River & Mercantile UK Micro Cap Inv Portfolio Update (2652U)
January 16 2017 - 6:44AM
UK Regulatory
TIDMRMMC
RNS Number : 2652U
River & Mercantile UK Micro Cap Inv
16 January 2017
Press Release 16 January 2017
River and Mercantile UK Micro Cap Investment Company Limited -
Portfolio update
River and Mercantile UK Micro Cap Investment Company Limited
confirms NAV has reached GBP100m for the first time since launch
and highlights redemption mechanism.
River and Mercantile UK Micro Cap Investment Company Limited
("RMMC" or the "Company") was formed following the placing of
shares on the Main Market of the London Stock Exchange plc in
November 2014. The portfolio is managed by Philip Rodrigs with the
support of the broader equity investment team at River and
Mercantile Asset Management and has delivered strong investment
returns, growing the net asset value ("NAV") by 42.1% since launch
(to 31 December 2016). The Board notes that the NAV of the Company
has now exceeded GBP100m for the first time since launch and
reminds investors of the redemption mechanism designed to maintain
the NAV at around this level.
The Board is committed to achieving long term capital growth
and, where possible, returning such growth to Shareholders
throughout the life of the Company. At the time of the original
placing, the Portfolio Manager advised the Board that, under normal
circumstance, it believed a NAV in the region of GBP100 million
would best position the Company to take advantage of a portfolio of
micro cap companies. Accordingly, the Directors stated that they
would intend to operate a redemption mechanism, from time to time,
pursuant to which shares may be redeemed compulsorily so as to
return the NAV back to around GBP100 million.
In the Board's opinion, the Portfolio Manager is best placed to
determine when such a redemption should be implemented and the
requirements for Portfolio realisations to fund any such
redemption, taking into account both the Company's cash position
and the desire to minimise any adverse impact on Shareholders from
the realisation process. Redemptions will, subject to compliance
with all applicable law and regulation and the original prospectus,
take place on a pro rata basis but all redemptions will normally be
subject to a de-minimis value to be returned of approximately GBP10
million (before costs).
When the Board decides to operate the Redemption Mechanism, the
Directors will promptly announce their intentions and such an
announcement will include the full details.
Andrew Chapman, chairman of RMMC commented:
"At the time of the placing, we stated that in the event the NAV
were to grow in excess of GBP100m, the Directors intended to
operate a redemption mechanism under which a portion of share
capital may be redeemed compulsorily so as to return the NAV back
to around GBP100 million. This allows the Company to exploit fully
the underlying investment opportunity and to deliver high and
sustainable returns to shareholders, principally in the form of
capital gains. This will enable portfolio holdings to have a
meaningful impact on the Company's performance, which might
otherwise be marginal within the context of a larger fund; and
ensure that the Company can continually take advantage of the
illiquidity risk premium inherent in micro cap companies."
ENDS
Notes for Editors:
River and Mercantile Asset Management LLP (RAMAM) is a UK based,
long-only investment management firm, established in 2006,
specialising in managing UK and Global equity portfolios for
Institutional and other professional investors and now manages
assets in excess of GBP2.7bn as of 30 September 2016.
River and Mercantile Group PLC (R&M Group) is an advisory
and investment solutions group with a broad range of services, from
consulting and advisory to fully-delegated fiduciary and fund
management. R&M Group is focused on creating investment
solutions for its clients across its core markets: UK defined
benefit pension schemes, UK defined contribution pension schemes,
US pensions, insurance, retail and strategic relationships.
R&M Group was formed by the merger of P-Solve Limited
(P-Solve) and River and Mercantile Asset Management LLP (RAMAM)
which was approved by the UK Financial Conduct Authority in March
2014 and listed on the London Stock Exchange in June 2014.
Press Enquiries Contact:
River and Mercantile
Group
James Barham 0207601 6262
jb@riverandmercantile.com 07785 718 121
Mark Thomas 0207 601 6262
mt@riverandmercantile.com 0785 037 4884
Winterflood Securities
Limited 020 3100 0000
Joe Winkley
Neil Morgan
This information is provided by RNS
The company news service from the London Stock Exchange
END
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