W&F Issue 4 2018

Wealth & Finance International - Issue 4 2018 25 Delivering Exceptional Long-Term Performance To enable diversity, RIT’s external manager book is a unique blend of managers with enduring performance over several market cycles, together with early identification of tomorrow’s talent. Each manager is a specialist within their given field, providing RIT with a book that is diversified by asset class, theme, geography and strategy. Management favour stock selection driven strategies and avoid exposure to volatile managers employing high levels of leverage. These relationships are managed by a dedicated funds team who possess strong due diligence skills prior to the initial investment decision and on an ongoing basis. Relationships with external managers are deeply embedded in the company’s overall investment approach, and provides unique insights that help inform its wider investment activities. Overall, private investments have been a key part of RIT since inception and a strong source of outperformance. The combination of our experienced internal team, permanent capital structure, strong track record and unique network continues to generate a deal flow of exceptional quality. Ultimately, RIT typically invests in companies which have a clear business model, a strong position in the value chain, good margins and favourable long-term cash generation. The firm balances a fair valuation with the trade-offs between growth and cash flow. Staff insist on experienced management teams who partner with them to share the risks and rewards of ownership and clear alignment between all stakeholders. RIT leverages its network to enable consortia on larger ticket deals, allowing access to opportunities otherwise outside of its capital structure.