Rodrigs’ UK Micro Cap trust reports results since IPO

The River and Mercantile UK Micro Cap Investment Company has reported pre-tax profits of £6.3m for the period October 2 2014 to September 30 2015.

The investment trust was launched for manager Philip Rodrigs by River and Mercantile in November 2014.

By the end of September last year, it had total assets of £56m, according to the financial statement.

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Chairman Andrew Chapman highlighted the “strong investment return” and “positive share price performance” achieved by Mr Rodrigs in the first 10 months since the trust’s initial public offering (IPO) which aimed to raise £100m.

Mr Rodrigs said: “With cash moving below 10 per cent of the portfolio during calendar Q2 2015, the company achieved fully invested status approximately six months after IPO.”

In the statement, Mr Chapman said “conditions remain healthy at the smaller end of the UK market”.

He added: “With continued domestic and stock-specific growth, the outlook remains positive for UK micro caps.”

The board of the investment trust confirmed it will not pay any dividends for the period to the end of September 2015.

According to FE Analytics, the River and Mercantile UK Micro Cap trust generated a return of 10.8 per cent for the 12 months to January 21, slightly lagging the AIC IT UK Smaller Companies sector average of 12 per cent.