| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 864.95 | -59 |
| Intrinsic value (DCF) | 802.97 | -62 |
| Graham-Dodd Method | 28.05 | -99 |
| Graham Formula | 392.03 | -81 |
Rights and Issues Investment Trust Public Limited Company (RIII.L) is a self-managed investment trust specializing in UK small-cap equities. Established in 1963 and headquartered in London, the company focuses on identifying undervalued opportunities within the UK public equity markets, benchmarking its performance against the FTSE All-Share Index. Operating in the Financial Services sector under the Asset Management industry, RIII.L provides investors with exposure to high-growth potential small-cap companies, leveraging deep market knowledge and a long-term investment approach. With a market capitalization of approximately £99.7 million, the trust emphasizes capital appreciation while maintaining a disciplined investment strategy. Its portfolio is designed to outperform broader market indices by targeting niche opportunities often overlooked by larger funds. The trust’s strong historical performance and dividend yield of 44p per share make it an attractive option for investors seeking diversified small-cap exposure in the UK market.
Rights and Issues Investment Trust presents a compelling investment case for those seeking exposure to UK small-cap equities. The trust’s focus on undervalued small-cap stocks, combined with its long-term investment horizon, offers potential for capital appreciation. With no debt and solid operating cash flow of £20.67 million, the trust maintains a stable financial position. However, its small-cap focus introduces higher volatility (beta of 0.79) compared to broader market indices. The dividend yield of 44p per share adds income appeal, but investors should be mindful of the inherent risks associated with small-cap investing, including liquidity constraints and market sensitivity. The trust’s performance is closely tied to the UK economy, making it susceptible to domestic macroeconomic fluctuations.
Rights and Issues Investment Trust differentiates itself through its specialized focus on UK small-cap equities, a niche often underserved by larger asset managers. Its self-managed structure allows for agile decision-making and lower overhead costs compared to externally managed trusts. The trust’s long-term investment approach and deep expertise in the UK small-cap market provide a competitive edge in identifying undervalued opportunities. However, its small-cap focus limits diversification compared to broader market trusts, increasing sector-specific risks. The absence of debt and strong cash flow generation underscore financial stability, but its performance is highly dependent on the UK’s economic conditions. While the trust benchmarks against the FTSE All-Share, its concentrated portfolio may exhibit higher volatility. Competitors with broader mandates or global exposure may offer more stability but lack RIII.L’s targeted growth potential in the UK small-cap space.