Herald Investment Trust

RomfordNavy

Symbol: HRI, ISIN:GB0004228648

Any thoughts on the future of Herald Investment Trust?

Just had the majority of my shares in this sold via corporate event (I had previously agreed to this). From what I can establish it seems that Herald are being taken over by Aberdeen which appears to have become necessary due to hostile actions by rogue investor Saba.

Now at a profit of 13.5% since I purchased the first of these I am not unhappy with their return, Question is will things change now of shall I just buy back into them again. Corporate action price paid was £32.90 and current offer price is £29.15 (£30.61 including stamp duty)..

the_seer

I sold my long term holding in Herald in the tender offer, with a view to buying back in, but have decided to hold fire for now. Tech stocks seem a bit nervy after a good recent run, so I'm happy to watch from the sidelines for now.
BTW stamp duty in "only" 0.5%, so the offer price of £29.15 would cost £29.30

RomfordNavy

Yep sorry stamp duty as 0.5%. That was me using the windows calculator which somehow I managed to get at 5% instead.

RomfordNavy

Might be more in Fundsmith then but I already have quite a holding in that already.

clivep

I'm glad this thread was posted.

All my shares were sold in the tender offer but I haven't had any notification of this from IWeb (now Scottish Widows), nor is there any document relating to the trade when I log in. Consequently, I have had a large cash balance sat there for a few days earning no interest.

Now to decide whether or not to buy back in.

Surely there's no stamp duty on buying this ETF is there?

Update…

Email from Scottish Widows about the corporate action received 20 mins after I posted my message here.

I re-purchased 479 shares from the proceeds of the 439 sold (+ a bit of cash left over).

I've just realised that there is indeed stamp duty on the purchase as this is an investment trust not an ETF.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82077442#Comment_82077442

"Surely there's no stamp duty on buying this ETF is there?"

You're referring to repurchasing shares in Herald Investment Trust? It isn't an ETF and is a company domiciled in Britain - see its "GB" ISIN - so yes, stamp duty (SDRT) will be due.

https://www.londonstockexchange.com/stock/HRI/herald-investment-trust-plc/company-page

Henry53

I can understand why some investors are waiting before buying back in. After a big corporate event it's often worth taking a little time to see how things settle. If the long-term strategy still looks solid, I wouldn't rule out investing again, but there's no harm in being patient.