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Rights and Issues beats benchmark but NAV falls 10.7%

Rights and Issues Investment Trust (RIII) has announced its annual results for the year ended 31 December 2018. During the year, the trust provided an NAV total return of -9.7% (The NAV fell from 2,372.3p per share to 2,118.1p per share, but paid a modestly higher dividend of 31.5p per share versus 30.75p per share for the prior year). Th trust has therefore outperformed the FTSE All-Share Index, which it says fell by 12.9% during the period. It has also beaten the FTSE Small Cap Index which it says fell by 13.2% during the same. The results contain very little in terms of performance attribution and outlook, so it is very difficult to comment on here. However, the chairman’s statement is included below in its entirety:

“The final income dividend proposed is 21.0p making 31.5p for the year, a 2.4% increase.

The share buy-back programme amounted to £7.9m in 2018. During the year, the average discount of Income shares to net asset value was 8.8% and therefore, in accordance with the Articles, no tender offer is required. The programme is again being extended for a further twelve months to February 2020.

With only weeks now left, Brexit remains uncertain and there is no clarity on the nature of the future relationship. This is now having discernible impacts on the UK economy.”

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