RIT Capital Partners records 'broadly flat' NAV total return in H1 2023
RIT cited difficult market conditions, persistent inflation and rising interest rates as some of the reasons for its results.
The trust closed the six-month period with NAV per share of 2.3 pence, while share price was at 1.8 pence, a 21% discount.
RIT cited difficult market conditions, persistent inflation and rising interest rates as some of the reasons for its results.
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However, it noted since inception its return per annum has been nearly 11%, compared with 7% of the MSCI ACWI.
Over the first half of 2023, the trust's quoted equities returned almost 7%, contributing 2.6% to NAV total return, with Japan and healthcare themes reporting good performance, while Builders FirstSource was marked as «standout performer».
Direct private investments returned 4.5%, with a number of transactions «at or above our December valuations», RIT explained, but overall the book took a slight dip.
Uncorrelated strategies delivered «positive, stable returns», the trust said, helped by interest rate positions, credit and gold.
Currency translation, however, detracted 2.9% from the NAV performance due to sterling strength, particularly against the US dollar.
RIT also paid a dividend of 19 pence per share in April, which will be maintained for October 2023. This represents an increase of just under 3% from last year's dividend.
The trust has bought back 5.6 million shares worth £105m, which added 0.8% to the NAV per share return. RIT's board said there is an opportunity to continue its buyback programme, with the current discount marking a «compelling investment for shareholders».
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