# RIT Capital Partners plc   Results for the half year ended 30 June 2019

- Link: https://www.directorstalkinterviews.com/rit-capital-partners-plc-results-for-the-half-year-ended-30-june-2019/412789363
- Published: 2019-08-05T07:31:18+01:00
- Author: Amilia Stone

**RIT Capital Partners plc** (LON:RCP) today published its results for the half 
year ended 30 June 2019.

**Financial Highlights:**

·      Total net assets in excess of £3 billion as at 30 June 2019; a new all-time
high

·      Growth in net assets of £241 million (before distributions) for the period

·      Net asset value (NAV) total return of 8.5% for the period

·      NAV per share 1,958 pence at 30 June 2019

·      Share price increased by 10.1% on a total return basis over the period

·      Average premium over the period was 7.1%

**Performance Highlights:**

·      Cautious portfolio positioning with an emphasis on capital preservation

·      Returns achieved with prudent net quoted equity exposure, averaging 45% over
the period

·      Diversified approach successfully produced distinctive sources of return

·      Strong contribution from the single stocks portfolio

·      Continued steady returns from the Absolute Return and Credit portfolio

·      Useful contribution from gold-related investments

·      Capital deployed into several new private investments

**Dividends:**

·      Dividend paid in April of 17 pence per share

·      The Board has declared a dividend of 17 pence per share for October

·      This represents an increase of 3.0% over the previous year’s dividend

**Summary:**

·      Following RIT’s success in preserving capital during a turbulent 2018, the
portfolio generated healthy returns over the first six months of 2019

·      Over the last five years, net assets have grown by over £1.1 billion (before
dividends)

·      Over the same five-year period, the share price total return was 73.3% versus
64.2% for our equity index (MSCI ACWI^(1))

·      Since inception, RIT has now participated in 73% of market upside but only
38% of market declines

·      Over the same period, the total shareholder return has compounded at 12.3%
per annum compared to the MSCI ACWI of 7.2%

·      £10,000 invested in RIT at inception in 1988 would be worth c.£360,000 today(
with dividends reinvested) compared to the same amount invested in the MSCI ACWI
which would be worth c.£85,000

> **Commenting, Lord Rothschild, Chairman of RIT Capital Partners plc, said**:
> “Total returns for the six-month period under review amounted to 8.5%, with your
> Company’s net asset value per share increasing to 1,958 pence. Net assets reached
> an all-time high of over £3 billion and your Company’s share price increased by
> 10.1% on a total return basis.
> …The last decade has seen a confluence of factors which have benefitted companies’
> earnings to an unprecedented extent. Lower cost of capital, reduced taxes, stagnant
> wages and the influence of globalisation contributed to record profit margins.
> These positive factors are, however, unlikely to be sustained. Trade wars, the
> weakening of economic growth and the risk of recession are of concern, particularly
> at a time when stock markets have reached all-time highs.
> Against this backdrop we are seeking to invest in situations that either give 
> us a degree of protection in potentially deteriorating conditions or in areas 
> where structural growth rates are sufficiently high for valuations to hold their
> own or indeed prosper. This approach shapes our asset allocation and security 
> selection. We seek to identify and to invest in companies with strong balance 
> sheets, attractively low valuations and which are likely to exceed GDP growth 
> rates. Many of our recent private investments are designed to benefit from some
> structural protection. Outside of equities, we look for uncorrelated strategies
> which are not dependent on economic growth and which we expect to produce positive
> returns.
> …At our AGM, we welcomed Maggie Fanari and Sir James Leigh-Pemberton to our Board
> as non-executive Directors. James will be taking over as Chairman from 30 September
> 2019. Our family ties and investments will be represented through my daughter 
> Hannah, who will continue to serve on the Company’s Board. Our management company,
> JRCM, is secure in the hands of its Executive Committee, led by Francesco Goedhuis(
> CEO) and Ron Tabbouche (CIO), together with Andrew Jones (CFO) and Jonathan Kestenbaum(
> COO)…”

Please click here to view the Company’s Half-Yearly Financial Report: 

http://www.rns-pdf.londonstockexchange.com/rns/8135H_1-2019-8-2.pdf

Share on: