RIT Capital Partners : announces Half-Yearly Report

2 August 2021

RIT Capital Partners plc

Results for the half year ended 30 June 2021

RIT Capital Partners plc today published its results for the half year ended 30 June 2021.

Financial Highlights:

• Net asset value per share (NAV) total return of 19.1% for the period
• NAV per share of 2,711 pence at 30 June 2021; a new all-time high
• Share price total return of 18.5% for the period
• Total net assets in excess of £4.2 billion at 30 June 2021
• Growth in net assets of ~£700 million (before distributions) for the period

Performance Highlights:

• Emphasis on capital preservation and long-term capital growth
• Diversified approach successfully produced distinctive sources of return with positive contributions from the majority of asset classes
• Strong contribution from the private investment portfolio (both the direct and fund holdings) underpinned by the successful IPO of Coupang
• Our quoted equity category contributed positively, led by cyclical positions buoyed by increased economic activity as well as some strong single stock picks
• The absolute return and credit book continued to provide steady and largely uncorrelated returns, in particular from distressed debt managers
• The main detractor to performance in absolute terms was the FX translation impact from an appreciating Sterling

Dividends and Buybacks:

• Dividend paid in April of 17.625 pence per share
• The Board has declared a dividend of 17.625 pence per share for October
• This represents an increase of 0.7% over the previous year's dividend
• The Company bought back shares when they were trading on a high single-digit discount; and intends to continue to selectively purchase shares in the market when viewed as beneficial

Summary:

• Over the last five years, net assets have grown in excess of £2 billion (before dividends)
• Since inception, RIT has now participated in 74% of market upside but only 38% of market declines
• Over the same period, the total shareholder return has compounded at 12.1% per annum compared to the ACWI of 7.6%
• £10,000 invested in RIT at inception in 1988 would be worth ~£434,000 today (with dividends reinvested) compared to the same amount invested in the ACWI which would be worth ~£111,000

Commenting, Sir James Leigh-Pemberton, Chairman of RIT Capital Partners plc, said:

"I am pleased to report that your Company's net asset value at the end of June increased to 2,711 pence per share, representing a total return (with dividends reinvested) of 19.1% over the half year. For the same period, the total shareholder return was 18.5%, with the share price on 30 June having increased to 2,430 pence.

The first six months of the year appeared to be a relatively benign time for equity markets, with many developed markets posting low double-digit gains, despite continuing Covid-19 concerns and notably higher inflation figures. However, beneath the surface, the situation was far more volatile, with material rotations between market-leading sectors, regions and themes ... All this resulted in a wide dispersion of underlying asset returns;

the first half of the year reminding us again that decisions over where exposure is held, and not just how much, is the key to achieving our Corporate Objective.

Our focus continued to be on ensuring the investment approach remained disciplined, but with the right amount of agility that these market conditions require.

The two principal KPIs we use for investment performance, the ACWI and RPI+3%, measured 12.2% and 3.4% respectively over the half year, resulting in your Company experiencing healthy outperformance … we saw positive contributions across the majority of your Company's asset categories, with private investments in particular producing strong returns…

Our long-term approach allows us to integrate these private investments with carefully considered allocations to stocks, equity and hedge funds, absolute return and credit, and currencies … We continue to believe this differentiated approach offers something truly distinct from many other offerings in both the investment trust and wider fund universe.

• my Board colleagues and I remain very grateful for the continuing exceptional efforts of our colleagues in JRCM, our suppliers and counterparties, which allow your Company to operate as normal."

Commenting, Francesco Goedhuis, Chairman and Chief Executive Officer of the Company's Manager, J. Rothschild Capital Management Limited (JRCM), and Ron Tabbouche, Chief Investment Officer of JRCM, said:

"While the results so far this year, and over recent years, are pleasing, we nevertheless remain vigilant, and will not hesitate to adjust the portfolio should the need arise … As we emerge from the most serious public health crisis in modern times, with systemic market uncertainties remaining, this is not the time to relax. And rest assured that we will not.

With a strong team around us, we are confident that our dynamic asset allocation and strong security selection skills, together with global deal sourcing and integrated risk management, will provide us with the best platform to continue to deliver equity-type returns with less risk."

ENQUIRIES:

Brunswick Group LLP:

Tom Burns: [phone]

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 in 1988 to over £4.2 billion as at 30 June 2021. Lord Rothschild and his immediate family interests retain a significant holding.

www.ritcap.com

A description of all terms used above, including further information on the calculation of Alternative Performance Measures (APMs) is set out in the Glossary and APMs section at the end of this RNS.