RIT Capital Partners

[monabri]

I would imagine that Covid 19 (phase 1 and a possible phase 2) might be the main overall influence.

I note that Emerging Mkts and Global account for ~44% of the holdings by NAV. Then add in the UK & Europe side of things where performance hasn't been great to say the least.

I would hazard a guess that it is the US content, just over a third of the NAV, that has been propping things up.

(taken from the latest factsheet)
North America 37%
Emerging Markets 22%
Global 22%
United Kingdom 9%
Europe 8%
Japan 6%

[scotia]

It may be useful to look at RIT's own performance figures from their monthly fact sheet. Helpfully they provide a NAV total return figure which removes all considerations of Discount or Premium. They also provide a comparative figure for the MSCI All Country Word Index. The latest fact sheet I can find is at 30th April 2020. Source https://www.ritcap.com/factsheets
5 year: RIT = +29.9%; MSCI All Country = +39.3%
10 year: RIT = +86.2%; MSCI All Country = +125.9%
There are also figures for YTD, 1 year and 3 year, but these are probably less interesting for the long term investor.

[mc2fool]

Sorry guys, I'm trying not to troll but ... could it be said that given the 10 year result is pedestrian, you're picking out a period over which RIT does in fact do well?

If that includes the chart I posted, it was simply the longest period chart I found with those two components (RCP & index), and I think it shows at a glance (given the caveat) the performance both over time and during specific periods.

However, in regards to your general accusation, could it be said that in choosing to focus on the to-now 10 year result, you're picking out a period over which RIT is pedestrian?

The problems of recency in performance figures is more usually warned about when noting good performance figures -- e.g. an investment doing very well in the last 3 months with the result that all longer periods look good too, but they may only do so 'cos they include the most recent stonking 3 months -- but similarly applies when noting recent poor performance figures.

It was noted earlier that the 5 & 10 year share price TRs were 20.7% & 89.0% respectively, whereas the 31-Jan-2020 factsheet gives them as 55.1% & 144.2%, so there's quite a recency effect in the to-today figures.

Methinks when assessing long term performance to decide if a currently low price is a bargain (as the OP clearly has), it's a better idea to look at rolling periods over time, rather than get hung up on the most recent to-today figures.....

[monabri]

Interesting thread here :

https://moneyforums.citywire.co.uk/yaf_ ... d-RIY.aspx

[OllyDrod]

Thanks all for a lively discussion - particularly on the impact of discounts on performance figures and the perennial issue of fees. Glad to see the discount already narrowing.
- OllyDrod

[jackdaww]

ive taken the plunge at 1760 .

near its low so far this year .

[monabri]

https://citywire.co.uk/investment-trust ... der+Weekly

"RIT Capital Partners (RCP), the Rothschild family-backed global investment trust, has rebounded from the pandemic crash with an impressive 19% first-half return. The performance was boosted by an unusually big holding in Coupang, Asia’s answer to Amazon."

"fund disclosed in March that it had made an estimated 222% return on its private equity investment in Coupang "

[absolutezero]

I have this as a share certificate. I actually forgot I even have it.
It's more than doubled since I bought it.
Nice to have a slice of money invested alongside the Rothschilds.
If you can't beat them, join them!

[forrado]

Just to awaken this dormant thread with the - make of it what you will - news ...

Shares in the £4.2bn Rothschild-backed multi-asset fund slide to a 17% discount after Telegraph’s Questor column takes fright at its increased private markets exposure.

"RIT Capital Partners (RCP ) sank nearly 10% yesterday after the Daily Telegraph’s influential Questor column withdrew its previous tip for the Rothschild-backed multi-asset fund."

While the Questor column may well be influential with private investors who are Daily Telegraph readers, over the years I've found its output to be very much a 'curate's egg' in terms of outcomes. Nor for that matter have I been tempted to invest with RIT Capital Partners (RCP). To my way of thinking, I've never been entirely comfortable with the opaqueness of some of the holdings.

[Padders72]

I bailed out of RIT last November after a disappointing 18 months or so. Considering it is supposed to be a wealth maintainer, it hasn't done a very good job of it recently. I haven't regretted it.

[DavidM13]

ive taken the plunge at 1760 .

near its low so far this year .

Great timing near the low!

[Dod101]

I have held this fund for a long while. Selling at the moment is surely the classic mistake. Its share price is/was at its lowest for a long while and it is I think still selling at a discount to NAV. If there is a good time to buy, sub £20 was surely the right time.

Its attraction to me is not the opaqueness of its holdings but the fact that I would not know how to go about holding many of these myself. I wold never bet the house on it but I think that RIT is a very useful diversifier. Growth has been off the agenda for a while now but its time will come again. I do not think that it has ever claimed to be a wealth preserver although others have ascribed those qualities to it.

Dod

[Nocton]

ive taken the plunge at 1760 .

near its low so far this year .

Great timing near the low!

1760 is surely a typo? Lowest price over last 12 months was 1952p.

[Itsallaguess]

ive taken the plunge at 1760 .

near its low so far this year .

Great timing near the low!

1760 is surely a typo?

Lowest price over last 12 months was 1952p.

Jackdaww's 1760p trade post was from June 2020 though...

Cheers,

Itsallaguess

[Dod101]

ive taken the plunge at 1760 .

near its low so far this year .

Great timing near the low!

1760 is surely a typo?

Lowest price over last 12 months was 1952p.

Jackdaww's 1760p trade post was from June 2020 though...

Cheers,

Itsallaguess

I have often found those very long and outdated threads very confusing, and here is a prime example.

Dod

[scotia]

Jackdaww's 1760p trade post was from June 2020 though...

Cheers,

Itsallaguess

Its price fell to 1346p (NAV 1930p) on 19/3/20 (the Spring 2020 Market Crash), and thereafter the price climbed to a peak of 2765p (NAV 2794p) on 4/1/22. Since then the price has retreated to 2060p (NAV 2454p) yesterday.
Data from graph on Hargreaves Lansdown Site.

[Adamski]

Considering the multitude of conspiracy theorists on the internet claiming the Rothschilds secretly run the world of finance. They've not done a good job of it lately flagship fund down 21% this year. Might be a buy at this price but not a wealth preserver.

[Lootman]

flagship fund down 21% this year. Might be a buy at this price but not a wealth preserver.

I have never taken the view that RIT is a "wealth preserver" in the same sense as CGT, PNL and RICA. And even Luniversal left RIT out of his "Wealth Preserver Five" or whatever he called it.

RIT is best seen as an unconstrained growth fund - the private equity allocation alone is not consistent with a mandate to avoid losses above all else. As such it can zig when the market zags, and vice versa. There is value to a fund that doesn't behave like the market.

[monabri]

https://citywire.com/investment-trust-i ... 406001#i=4

"We believe this is a significant overreaction and that the current 17% discount is an extremely attractive entry point for both investors with a defensive mindset and those looking for an attractive total return opportunity,’ said analysts at Numis Securities, a joint corporate broker to RCP with JPMorgan Cazenove. "

"JPMorgan Cazenove analyst Christopher Brown acknowledged it was ‘not unreasonable’ to assume lower future returns from the 28% RCP held in external, mostly US venture capital funds, as well as the 13% of direct co-investments in unquoted companies it had with these fund managers. But, he said, adjusting for gearing (borrowing) and public market investments in the portfolio implied the private market assets stood on a 38% discount to their actual value, which was not out of line with the depressed state of listed private equity trusts."

[Dod101]

flagship fund down 21% this year. Might be a buy at this price but not a wealth preserver.

I have never taken the view that RIT is a "wealth preserver" in the same sense as CGT, PNL and RICA. And even Luniversal left RIT out of his "Wealth Preserver Five" or whatever he called it.

RIT is best seen as an unconstrained growth fund - the private equity allocation alone is not consistent with a mandate to avoid losses above all else. As such it can zig when the market zags, and vice versa. There is value to a fund that doesn't behave like the market.

I agree. I said much the same higher up this thread. I am prepared to think that the managers are well aware of the points made and I will trust them as I have done for some years now. Growth has been out of favour for at least this past year as my small growth portfolio can testify.

Dod