RIT Capital Partners : announces Half-Yearly Results

14 August 2017 RIT Capital Partners plc Results for the half year ended 30 June 2017

RIT Capital Partners plc today published its results for the half year ended 30 June 2017.

Financial Highlights:

• Total net assets at 30 June 2017 reached £2.8 billion

• Growth in net assets of £104 million (before distributions) for the period

• Net asset value (NAV) total return of 4.0% for the period

• NAV per share 1,784 pence at 30 June 2017

• Average premium over the period was 6.1%

  Performance Highlights:

• Defensive portfolio positioning with an emphasis on capital preservation

• Returns achieved with prudent net quoted equity exposure, averaging 43% over the period

• Strong performance of the quoted equity portfolio comprising individual stocks and external managers

• Continued steady returns from Absolute Return and Credit portfolio

• Significant new investment with Social Capital, one of Silicon Valley's leading technology investment firms

  Dividends:

• Dividend paid in April of 16 pence per share

• The Board has declared a dividend of 16 pence per share for October

• This represents an increase of 3.2% over the previous year's dividend

  Summary:

• Over the last three years, net assets have grown by £740 million (before dividends)

• Over the same three-year period, the share price total return was 53%

• Since inception, RIT has now participated in 75% of market upside but only 39% of market declines

• Over the same period, total shareholder return has compounded at 12.7% per annum compared to the MSCI ACWI of 6.8%

• £1,000 invested in RIT at inception in 1988 would be worth in excess of £30,000 today compared to the same amount invested in the MSCI ACWI which would be worth approximately £6,700

Commenting, Lord Rothschild, Chairman of RIT Capital Partners plc, said:

"Your Company's net asset value at the end of June had risen to 1,784 pence per share, representing a total return, including the 16 pence interim dividend, of 4.0% for the half year. Over the last three years, the NAV return stands at 34.9%, with shareholder returns of 52.9%...

We do not believe this is an appropriate time to add to risk. Share prices have in many cases 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.

As the 'Fourth Industrial Revolution' develops, it becomes increasingly important for your Company to be able to assess investment opportunities in the innovation-driven changes which are affecting almost every business sector. With this in mind, we have entered into a partnership with Social Capital, one of Silicon Valley's leading technology investment firms…"

ENQUIRIES:

Brunswick Group LLP:

Tom Burns / Rowan Brown 020 7404 5959

About RIT Capital Partners plc:

RIT Capital Partners plc is an investment company listed on the London Stock Exchange. Its net assets have grown from £280 million on listing to £2.8 billion today. It is chaired by Lord Rothschild, whose family interests retain a significant holding. www.ritcap.com