British based investment trust RIT Capital Partners plc (LON: RCP) books bumper NAV returns and growth in assets during the first half.
The Company recorded all-time-high net assets of £3 billion on 30 June 2019, with growth before distributions of £241 million. Further, the Company’s net asset value yielded a total return of 8.5% during the first half, with NAV per share at 1,958 pence as of 30 June.
RIT Capital also noted their share price increased 10.1% on a total return basis and average premium of 7.1%.
The Company stressed a diverse and cautious approach to portfolio management, based on a capital preservative approach with strong focus on gold.
RIT Capital also stated that net assets had grown by £1.1 billion over the last five years (before dividends), and that £10,000 invested in the Company in 1988 would now be worth £360,000.
RIT Capital comments from Lord Rothschild
Commenting on the update, Company Chairman Lord Rothschild noted,
“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.”
The Company’s share price has dipped 1.44% or 30.00p to 2,050.00p a share 05/08/19 12:40 BST. The Group’s dividend yield is 1.61%.
Elsewhere in large financial player and investment trust news, there have been updates from; London Stock Exchange Group (LON: LSE), F&C Investment Trust PLC (LON: FCIT), River and Mercantile Group PLC (LON: RIV), Brewin Dolphin Holdings plc (LON: BRW) and Hansard Global plc (LON: HSD).