W&F Issue 4 2018
www.wealthandfinance-news.com 24 Wealth & Finance International - Issue 4 2018 RIT’s corporate objective is to deliver long-term capital growth, while preserving shareholders’ capital and to invest without the restrictions of a formal benchmark, whilst also being able to deliver for shareholders increases in capital value in excess of the relevant indices over time. Therefore, the firm aims to deliver healthy participation in up markets with reasonable protection in down markets. Over time, this should allow the firm to compound ahead of markets through the cycles. Since its inception, the company has participated in 75% of market upside but only 39% of the market declines. A shareholder who invested in RIT at inception has seen a share price total return of 12.6% per annum, which represents a meaningful outperformance of global equity markets. The Board at RIT is led by its Chairman, Lord Rothschild and the portfolio is managed by its wholly owned subsidiary, J. Rothschild Capital Management Limited (JRCM). The day to day business is run by JRCM’s Executive Committee, whose Chief Executive is Francesco Goedhuis. The firm believes that its approach to active management of equity exposure, combined with the early identification of opportunities and themes across asset classes, is more likely to lead to long- term outperformance. There is a relentless determination within the firm to deliver long-term capital growth, while at the same time preserving shareholders’ capital. In doing so, the firm has consistently outperformed markets through the various investment cycles. The decision making at the company begins with a considered top down macro-economic view. During times where there is a heightened risk, the firm tends to keep its exposure to quoted equity markets at moderate levels. RIT is discerning over the investments that make it into its portfolio, as each investment is the subject of rigorous analysis and must bring something genuinely unique in order to be included in the portfolio. Strong macro-economic views also allow staff to deploy active currency strategies and appropriate overlays. RIT will always take active currency positions where it believes there is an opportunity to enhance returns for its shareholders. The firm does this whilst remaining ever mindful that Sterling is its base currency. As such, while it is able to retain at its core an equity bias, the firm nonetheless have the freedom to invest the portfolio across multiple asset classes, geographies, industries and currencies. This has been the basis of the team’s style over many years - combining thematic investing with individual securities, and private investments with public stocks. The long-term success of RIT has been drawn from a distinctive blend of individual stocks, private investments, equity funds and currency positioning, all overlaid with macro exposure management. In-house stock picks typically represent between 15% and 30% of the firm’s portfolio. Possessing an experienced in-house team dedicated to stock selection, their decisions are characterised by discipline and conviction. This concentrated approach means that every position matters, and ensures that this element of the book contributes meaningfully to the company’s overall performance. Working with exceptional managers has always been a cornerstone of RIT’s distinctive investment approach and typically makes up between 40% to 60% of its portfolio. The firm invests in managers that will compound returns over time in excess of their respective benchmarks. RIT offers exposure to managers that in many cases would be difficult for retail investors to access. Of the organisation’s current top ten managers, eight are closed to new money. Delivering Exceptional Long-Term Performance RIT is an investment trust listed on the London Stock Exchange with a widely diversified portfolio. Free from the constraints of a formal benchmark, RIT has a remit to invest globally in any asset class. Recently, we profiled the firm to discover more about their remarkable success. 1803WF18 Contact: Jonathan Kestenbaum Company: RIT Capital Partners, Spencer House, 27 St. James Place, London, SW1A 1NR, UK Telephone: +44 (0) 207 647 8565 Web Address: www.ritcap.com
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