RIT Capital Partners plc
("RIT" or the "Company")
3 March 2025
Results for the year ended 31 December 2024
Positive returns from all three investment pillars, with 10.3% dividend rise planned for 2025
·
The Company's Report and Accounts are available here:
http://www.rns-pdf.londo...s/9766Y_1-2025-2-28.pdf
Highlights
·
Net Asset Value (NAV) per share total return for the year of 9.4%1 (including dividends) (2023: 3.2%)
·
Total shareholder return of 7.9% (including dividends) (2023: -9.6%)
·
Net assets up 4.4% to £3.7bn (2023: £3.6bn)
·
Quoted Equities contributed 6.9% to NAV, with returns of 15.8%
-
Progressively increased portfolio allocation to 46.2% (31 Dec 2023: 38.4%)
-
Strong performances from direct stock investments in Quality and SMID-cap companies, and from specialist managers focusing on Japan and China
·
Private Investments contributed 1.8% to NAV, with returns of 4.8% following two years in negative territory
-
Private fund investments were the biggest contributor, while direct investments were broadly flat
-
£170m of realisations, supported by improving IPO conditions and M&A activity
-
Invested in SpaceX, the private space launch and satellite communications company
-
Reduced allocation to 33.4% (2023: 35.9%), in line with target
·
Uncorrelated Strategies contributed 1.3% to NAV, with returns of 4.5%
-
Allocation decreased marginally to 23.8% (2023: 25.6%) with positive returns from credit, macro and market-neutral strategies partially offset by declines in gilts and carbon credits
·
Currency detracted modestly, as sterling strengthened against other major currencies, except the US dollar
·
Our Ongoing Charges Figure, a measure of day-to-day running costs, was stable at 0.76% for the year (2023: 0.77%)
·
Discount of -24.0% at 31 December 2024, an issue facing much of the investment trust sector. Narrowing the discount remains a key priority of the Board
·
In the last 10 years, RIT has generated a NAV per share total return of 108.6%, more than doubling shareholders' capital
·
Since listing in 1988, the annualised share price total return has compounded at 10.5% per annum, and the NAV per share total return at 10.5% per annum
·
£10,000 invested in RIT at listing would be worth approximately £378,000 today2 compared to the same amount invested in the ACWI (50% £), which would be worth approximately £147,000
·
Sir James Leigh-Pemberton has decided to retire as Chairman at the forthcoming AGM in May due to increased demands from his wider commitments. Subject to his re-election, the Board has nominated the Senior Independent Director, Philippe Costeletos, to replace Sir James
Capital allocation
·
2024 marked the 11th successive year of dividend growth
·
Bought back £80 million or 4.3 million shares, adding 0.8% to the NAV per share return
·
Planned dividend of 43p per share in 2025, a 10.3% increase on 2024, to be paid in two equal instalments in April and October
·
The Board is continuing to allocate capital to buybacks in 2025, signalling its confidence in the NAV and overall approach
Outlook
·
While markets remain uncertain, our flexible and diversified portfolio is designed to be resilient in any environment
·
Buoyant equity markets face risks from high valuations and concentrated technology performance, underlining the importance of a selective approach
·
Private Investments are set to benefit from improved regulatory conditions, which should support growth in M&A and IPO activity, providing monetisation opportunities and enhancing returns
·
In Uncorrelated Strategies, we see compelling opportunities in certain areas of the market, while a more normalised interest rate environment remains supportive
·
We continue to see investment opportunities in megatrends shaping the global economy including the diffusion of technology, medical advances increasing longevity and quality of life, and a multi-polar world
·
Our brand, in-house expertise, network of specialist managers and flexible capital structure enable us to take advantage of these megatrends, driving long-term returns
1
Unchanged from the preliminary, unaudited 31 December 2024 NAV reported to shareholders on 6 February 2025. Over the same period, the Company's two reference indices, CPI plus 3% and the ACWI (50% £) were up 5.5% and 20.1% respectively
2
As at 31 December 2024
Sir James Leigh-Pemberton, Chairman of RIT Capital Partners plc, said:
"All three of our investment pillars saw positive performance, led by the Quoted Equities portfolio which had another good year. In 2024, we carefully reduced our exposure to Private Investments to a third of net asset value and our emphasis on returns to shareholders continues through a progressive dividend policy and share buybacks."
Maggie Fanari, Chief Executive Officer of J. Rothschild Capital Management, said:
"2024 was a year of solid progress for the Company, and we enter 2025 with the portfolio well positioned for continued growth. Our Quoted Equities pillar delivered mid-teen returns, while in Private Investments we enhanced performance and realisations and our SpaceX investment demonstrates our ability to access exclusive opportunities not typically available to individual investors. While macroeconomic uncertainties remain, we believe our flexible and resilient portfolio is well positioned to take advantage of global opportunities across asset classes while managing risks, and to deliver returns in line with our long-term trend."
Annual General Meeting:
This year's Annual General Meeting will be held on Thursday, 1 May at 12:00 pm at Spencer House, London SW1A 1NR