River & Mercantile Micro Cap returning more money – River and Mercantile UK Micro Cap Investment Company completed its first partial compulsory redemption in June 2017. This returned approximately GBP15 million to shareholders and reduced the company’s net asset value to around GBP100 million, in accordance with the fund’s policy of keeping itself small and nimble, given the size of the companies that it is investing in. They says that at the £100m mark, they are able to exploit fully the underlying investment opportunity in micro cap companies.
Since the first partial compulsory redemption, the portfolio, which is managed by Philip Rodrigs with the support of the broader equity investment team at River and Mercantile Asset Management, has continued to deliver strong investment returns, growing the NAV to approximately GBP114 million. Accordingly they plan to implement the company’s second compulsory redemption of shares.
Approximately GBP15 million, less the costs of the redemption, is to be returned to shareholders at a price based on the NAV per share as at close of business on 10 November 2017. This was 191.26p and, accordingly, after deduction for expenses, the amount to be paid to shareholders for each redeemed share is 191.24p (the “Redemption Price”). 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 15 December 2017.
The redemption is being effected pro rata to holdings of shares on the register at the close of business on 1 December 2017, in accordance with the redemption mechanism in the articles of incorporation.
RMMC : River & Mercantile Micro Cap returning more money