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Interim Results

RIT cautious amid geopolitical tensions

14 August 2017 08:00

RIT Capital Partners grew its net asset value (NAV) to 1,784 pence per share at the end of June, representing a total return of 4% for the half year.

Over the last three years the NAV return stands at 34.9%, with shareholder returns of 52.9%.

Lord Rothschild, chairman of RIT Capital Partners, said it is not an appropriate time to add to risk.

He said share prices have risen to unprecedented levels at a time when economic growth is by no means assured.

The S&P is selling at 25 times trailing 12 months' earnings, compared to a long-term average of 15, while the adjusted Shiller price earnings ratio, which averages profits over 10 years, is approximately 30 times.

"The period of monetary accommodation may well be coming to an end. Geopolitical problems remain widespread and are proving increasingly difficult to resolve. We therefore retain a moderate exposure to equity markets and have diversified our asset allocation towards equity investments where value creation is driven by some identifiable catalyst or which are exposed to longer-term positive structural trends.

"We have a particular interest in investments which will benefit from the impact of new technologies, and Far Eastern markets, influenced by the growing demand from Asian consumers."

RIT has entered into a partnership with Social Capital, one of Silicon Valley's leading technology investment firms.

RIT will invest in a range of funds to benefit from Social Capital's data-driven approach and expertise in this area, as well as looking at specific opportunities.

At 8:00am: (LON:RCP) RIT Capital Partners Plc share price was +11.5p at 1943.5p

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Related Company: RCP

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