RIT Capital Partners results for 2014 show the company generating a return on net assets of 9.5% and a return to shareholders of 13.3% as the discount narrowed from 9% to 5.8%. They are keen to stress that the performance has been achieved with a relatively low average exposure to equities of 56% over the year. The Board intends to pay 30p of dividends in 2015 (15p in April and 15p in October). This represents an increase of 2% over 2014.
They break down the performance of the fund over the year – 4.7% of the NAV return came from their listed equity portfolio, 3.1% from private investments, 3% from currency movements and 1.3% from their absolute return and credit portfolio. The weightings to government bond and interest rates lost them money.
They sold Martin Currie – an investment manager, Chart Show – a media company, and Metron – an oil services company specialising in the Norwegian North Sea from the private equity portfolio during the year. In January they acquired GVO Investment Management and say they are confident that assets under management can be grown in the years ahead.
The statement highlights RIT’s performance in falling markets – they say that, since inception, RIT has participated in 75% of market upside but only 38% of market declines.
RCP : RIT Capital Partners stresses defensive nature of portfolio