REG - RIT Cap. Partners - Final Results
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RNS Number : 0225V RIT Capital Partners PLC 03 March 2026
3 March 2026
RIT Capital Partners plc ("RIT" or the "Company")
Final Results for the year ended 31 December 2025
· The Company's Annual Report & Accounts are available here:
http://www.rns-pdf.londonstockexchange.com/rns/0225V_1-2026-3-2.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0225V_1-2026-3-2.pdf)
RIT reports strong portfolio performance and shareholder returns
· Delivered a 13.5% Net Asset Value (NAV) per share total return for the year,
and a 16.9% share price total return.
· Double-digit returns from all three investment pillars - Private Investments,
Quoted Equities and Uncorrelated Strategies, led by Private Investments.
· Key areas for new investments in 2025 included the UK and Europe, emerging
markets, commodity-related equities, and technology.
· Since inception, the annualised share price total return has compounded at
10.7% per annum, and the NAV per share total return at 10.6% per annum.
· Share price discount to NAV of -22.3% at 31 December 2025 (2024: -24.0%).
Philippe Costeletos, Chairman of RIT Capital Partners plc, said:
"We're pleased to report a 13.5% NAV per share total return and 16.9% total
shareholder return, alongside our continued dividend growth and emphasis on
share buybacks. These results reflect the strength of our long-term investment
strategy, disciplined risk management and the quality of our portfolio, and
build on our track record of 10.6% annualised NAV per share total return since
our inception."
Maggie Fanari, Chief Executive Officer of J. Rothschild Capital Management,
investment manager for RIT Capital Partners plc, said:
"The global investment landscape continues to undergo a profound
transformation with the impact of AI and a shifting geopolitical environment.
Whilst this creates a more complex backdrop, it equally creates opportunities.
The United States remains a core exposure, but within quoted equity, greater
emphasis has been placed on the UK and Europe, emerging markets and
commodity-related stocks. Opportunities in technology are more focused through
our private investments book, with early investments in fast-growing private
companies including SpaceX, Anthropic and Databricks.
"Looking ahead, we believe that our strong and expanding global network,
experienced investment team and diversified portfolio leave us well positioned
to thrive in 2026 and beyond."
Portfolio highlights
· Private Investments generated an 18.3% return and contributed 6.5% to NAV.
o Multiple exits totalling £232m, equivalent to 5.7% of year-end NAV or 18.6%
of the private portfolio and representing our highest level of realisations
since 2021.
o A 47.4% return from private direct investments including realisations at an
aggregate 112% above carrying value.
o A 10.2% return generated by our specialist funds portfolio, which continues to
be self-funding.
o New investments made in high-growth businesses such as Anthropic and
Databricks, as well as a timely increase in our exposure to SpaceX.
· Quoted Equities generated a 15.0% return and contributed 6.9% to NAV.
o Funds performance was led by specialist managers focused on biotech, Japan and
emerging markets.
o Direct stocks benefitted from European aerospace and defence holdings, with
some idiosyncratic stocks partially offsetting performance.
· Uncorrelated Strategies generated a 12.1% return and contributed 3.4% to NAV.
o Performance was led by absolute return and credit as well as gold.
· Active currency hedging reduced the impact on the portfolio of a near -8% fall
of the US dollar relative to sterling. The net impact of currency after
hedging was -2.9%.
Capital allocation
· The Company bought back a further 3.0% of issued share capital in 2025 at a
total cost of £89 million, adding an estimated 0.9% to NAV per share total
return. This brings total share capital repurchased since 2023 to 11.2%.
· With the ongoing discount to NAV, the Board continues to commit capital to
buybacks.
· Planned dividend of 45p per share in 2026, an above inflationary increase of
4.7%, to be paid in two equal instalments in April and October 2026 - the
13(th) successive year of dividend growth.
Financial Summary
31 December 2025 31 December 2024 Return / Change
RIT NAV per share total return 13.5%(1) 9.4% 4.1% pts
RIT share price total return 16.9% 7.9% 9.0% pts
NAV per share 2,921p(1) 2,614p 11.7%
Share price 2,270p 1,986p 14.3%
Premium/(discount) -22.3% -24.0% 1.7% pts
OCF for the year 0.73% 0.76% -0.03% pts
Total dividend in year 43.0p 39.0p 10.3%
(1) Unchanged from the preliminary, unaudited 31 December 2025 NAV reported to
shareholders on 5 February 2026. Over the same period, the Company's two
reference indices, CPI plus 3% and the ACWI (50% £) were up 6.4% and 17.1%
respectively.
Annual General Meeting:
This year's Annual General Meeting will be held on Thursday, 30 April at 12:00
pm at Spencer House, London SW1A 1NR
For more information:
J. Rothschild Capital Management Limited (Manager):
T: 020 7647 8565
E: investorrelations@ritcap.co.uk (mailto:investorrelations@ritcap.co.uk)
Deutsche Numis Securities Limited (Joint Broker):
Nathan Brown / Vicki Paine
T: 020 7260 1000
JP Morgan Cazenove Limited (Joint Broker):
William Simmonds
T: 020 3493 8000
Brunswick Group (Media enquiries):
Nick Cosgrove / Peter Hesse
T: 020 7404 5959
E: RIT@BrunswickGroup.com (mailto:RIT@BrunswickGroup.com)
www.ritcap.com (http://www.ritcap.com)
The following is extracted from the Company's Report and Accounts
COMPANY HIGHLIGHTS
Key company data 31 December 2025 31 December 2024 Change
NAV per share 2,921p 2,614p 11.7%
Share price 2,270p 1,986p 14.3%
Premium/(discount) -22.3% -24.0% 1.7% pts
Net assets £4,040m £3,731m 8.3%
Gearing(1) 3.2% 8.9% -5.7% pts
Ongoing charges figure(1) 0.73% 0.76% -0.03% pts
Total dividend paid in year 43.0p 39.0p 10.3%
Performance history 1 Year 3 Years 5 Years 10 Years Since
inception,
1988
RIT NAV per share total return(1) 13.5% 28.2% 37.4% 119.1% 4,176%
CPI plus 3.0% per annum 6.4% 20.1% 47.7% 85.9% 716%
ACWI (50% £) 17.1% 66.7% 73.8% 208.6% 1,626%
RIT share price total return(1) 16.9% 13.9% 20.8% 62.0% 4,320%
FTSE 250 Index(2) 13.0% 32.0% 27.4% 70.9% 1,985%
1 The Group's designated Alternative Performance Measures (APMs) are the NAV per
share total return, share price total return, gearing, and ongoing charges
figure (OCF). A description of the terms used in this RNS, including further
information on the calculation of APMs, is set out in the Glossary and APMs
section.
2 RIT's shares are a constituent of the FTSE 250 Index, which is not considered
a Key Performance Indicator (KPI). Before June 1998, when the total return
index was introduced, the index was measured using a capital-only version.
Chairman's Statement
Philippe Costeletos
Introduction
2025 has demonstrated that financial markets, and indeed economies, can make
progress even against a backdrop of expanding geopolitical risk. The past year
was marked by episodes of considerable volatility in markets and the full year
outcome, as measured by leading stock market indices, was a surprisingly
strong one. For investors, these conditions offered the opportunity to both
harvest gains and take advantage of new opportunities.
Performance
We are pleased to report strong portfolio performance and shareholder returns
for the 12 months to 31 December 2025. RIT's net asset value (NAV) per share
increased by 13.5% (with dividends reinvested), to finish the year at 2,921p.
The share price closed at 2,270p, a total return to shareholders of 16.9%
(including dividends). Over the same period, RIT's inflation hurdle, CPI
plus 3%, measured 6.4%, while the ACWI (50% £) equity index was up 17.1%.
All three investment pillars - Quoted Equities, Private Investments and
Uncorrelated Strategies - produced double-digit returns, with performance
driven by a broad range of factors. In the current environment, we firmly
believe that diversification across asset types and geographies is an ever
more critical aspect of prudent risk management. We are pleased that all three
pillars delivered positive returns consistent with RIT's long-term goals.
In line with the Board's previously stated intention of reducing the
proportion of assets in Private Investments to between around a quarter and a
third of NAV, RIT ended 2025 with an allocation of 31.7%. During the year our
Manager selectively deployed new capital where it saw opportunities,
capitalising on the ongoing momentum in initial public offering (IPO) and
mergers and acquisitions (M&A) activity to realise assets.
Share price performance and discount
The Board remained focused on investor engagement, transparency and capital
allocation in a year when the UK investment trust sector experienced both
challenge and change.
We believe that the single most important factor in reducing RIT's discount is
its investment performance. Critical to this are the people we have in place
at the Manager and we are pleased with how the investment team is performing
under CEO Maggie Fanari's leadership.
What we saw in 2025 was a year of two contrasting halves, both for RIT and
global markets. In the first half, we experienced challenging conditions as
discount levels across the UK investment trust sector remained wide and market
sentiment was cautious, with calls for more decisive action on capital
allocation, transparency, and portfolio composition. RIT was not immune to
these pressures.
In the second half, global market conditions improved markedly, which along
with continued efforts on shareholder engagement, contributed to a material
narrowing in RIT's share price discount to NAV from ‑29.7% at the end of
August 2025 to -22.3% by year-end.
This progress, led by strong investment performance, a 16.9% total shareholder
return, exceeding the NAV return over the period, reaffirms the value of
consistency, transparency, and alignment with RIT's long-term approach.
We welcome the clarity from the UK's new Consumer Composite Investment rules
announced by the FCA in December, with costs to be presented as a single
Ongoing Charges Figure (OCF). All costs associated with our business and its
investments have always been reflected in RIT's NAV and therefore the share
price.
Capital allocation, dividend and buybacks
The Board keeps capital allocation under continual review to strike the
appropriate balance between capital returns to shareholders and investment in
long-term opportunities. At current levels, share buybacks are an attractive
and immediately accretive use of capital, and RIT remains active when it
believes they represent compelling value. As at 31 December 2025, the total
share capital repurchased through buybacks since the start of the year
amounted to 3% at a total value of £89m. Since early 2023, RIT has bought
approximately 11.2% (equivalent to £332m) of share capital.
RIT continues its progressive approach to dividends, which provides
shareholders with a growing and reliable source of income. We propose to
increase the dividend for 2026 by 4.7% to 45p per share, an increase above
inflation. This will be our 13th consecutive year of dividend growth, and our
approach remains to maintain or increase the dividend, subject always to the
overriding capital preservation needs.
Shareholder engagement
The Board places a high importance on shareholder engagement and
communications, and further progress was made in this regard in 2025. One
example was the improvement of RIT's disclosure around Private Investments,
with dedicated presentations on RIT's approach and portfolio published on our
website. We have been delighted with the positive feedback these initiatives
have garnered from analysts and investors.
Our Manager has undertaken many more meetings with institutional shareholders
and made material strides in enhancing communications with private investors
through more targeted events and initiatives, including rolling out a webinar
programme specifically for retail shareholders.
We have received encouraging feedback on RIT's increased efforts to
communicate through podcasts and media interviews, as well as its more
content-rich website and company LinkedIn page, which we invite you to follow.
Further initiatives are planned in 2026 to build on this momentum.
Governance
I am pleased to confirm that RIT continues to comply with the recommendations
of the FTSE Women Leaders Review, the Parker Review and the FCA UK Listing
Rules in terms of Board composition. Female Directors currently make up 57% of
the Board, with two Directors from a minority background. The Senior
Independent Director and the chairs of the Audit and Risk, Conflicts,
Remuneration, and Valuation Committee are all female.
ESG remains a key focus and the Manager has recently published its updated
Responsible Investment Framework and Policy, which can be viewed on our
website. Information on ESG initiatives and enhancements, including RIT's Task
Force on Climate-related Financial Disclosures Report, can be found in our
Sustainability Report.
Outlook
Over the past few years, the UK's investment trust sector has adjusted to one
of the sharpest interest rate tightening cycles in recent memory - an
aftershock of the post-pandemic inflation surge. Rising real rates, coupled
with market scepticism around illiquidity and valuation transparency, weighed
on sentiment. As we transition into a period of rate normalisation, history
offers some perspective: we believe investment trusts are best placed to
perform in precisely these conditions.
It is an interesting time for the sector, which has delivered record returns
of capital in 2025, while remaining highly active on the M&A and value
maximisation front. We believe this period of rebalancing and consolidation
will result in a stronger, leaner, and higher quality sector better placed to
exploit the structural advantages of the closed-end model. The underlying
forces driving consolidation remain compelling, with investors increasingly
focused on scale, liquidity, and differentiated sources of return. The Board
believes RIT is well placed in this environment.
The market backdrop I have referred to, of course, prompts caution in some
areas, while presenting opportunities in others. As ever, RIT will maintain a
cautious and opportunistic stance guided by its core principles: to protect
and grow capital over time, to take a thoughtful and patient approach to risk,
and to continue investing in areas where we believe the portfolio can deliver
differentiated returns. RIT's permanent capital, flexibility across asset
classes, and the ability to invest with a long-term view remain powerful
differentiators - particularly in a market increasingly dominated by passive
flows and short-term benchmarks.
On behalf of my fellow Board members, I would like to close by taking this
opportunity to thank you, our shareholders, for your support.
Philippe Costeletos
Chairman
2 March 2026
CEO Letter
Dear Shareholders,
I am pleased to update you on our performance for the 12 months to 31 December
2025. Despite a year marked by heightened macroeconomic and geopolitical
uncertainty, we believe the portfolio navigated this environment well,
delivering a NAV per share total return of 13.5%, with positive returns across
all three investment pillars. This strong performance reflects our
long-standing emphasis on diversification, discipline, and prudent risk
management.
Investing through structural change
The global investment landscape continues to undergo a profound
transformation. Long-standing assumptions around geopolitics, globalisation,
and monetary policy are being challenged, creating a more complex and volatile
environment. We do not view this backdrop simply as a source of risk; history
shows that periods of structural change often generate compelling long-term
investment opportunities.
Two forces increasingly shape how we invest. The first is a shift towards a
more fragmented, multipolar world, where power is being redistributed among
multiple regions. The second is a far-reaching technological revolution, led
by Artificial Intelligence (AI). Together, these trends both inform how we
allocate capital and how we build resilience into the portfolio.
Whilst the United States remains a core exposure, we have been early in
identifying investment opportunities emerging elsewhere. We see potential in
the UK and Europe, where sentiment has been subdued but fundamentals are
improving. Emerging markets have also shown renewed momentum, supported by a
weaker US dollar, higher commodity prices, favourable demographics, and rapid
adoption of new technologies.
Commodities, particularly gold, have re-emerged on the investment horizon.
Persistent inflation concerns, geopolitical uncertainty, and changing monetary
regimes, combined with a renewed focus on infrastructure needs, have reignited
interest in this asset class.
The multipolar world
Recent developments signal a clear break from the post-war global order.
Governments are prioritising national resilience, supply-chain security, and
strategic autonomy. One important consequence has been a renewed willingness
to use fiscal policy, even in countries previously associated with restraint.
This shift is improving medium-term growth prospects outside the United States
and reshaping relative investment opportunities across regions. At the same
time, geopolitical tensions and policy uncertainty are encouraging investors
to reduce concentration risk and adopt a more globally diversified approach.
We believe these forces support a gradual rebalancing of capital towards a
broader and more resilient global opportunity set.
From AI promise to practical impact
Alongside these geopolitical shifts, AI is moving from model training to
real-world deployment. The focus is increasingly on applying existing
technologies at scale, integrating AI into everyday business processes rather
than simply developing ever-larger models. As AI meaningfully improves
efficiency and decision-making and reduces costs for business, the pace of AI
adoption will continue to accelerate further.
We expect the long-term value creation brought by successfully embedding AI
into operations and business models to extend well beyond the traditional
technology sector. We believe this broad diffusion of technological capability
will transform productivity across industries and economies over the coming
decade.
As we outline in our Manager's Report, these factors are reflected in how we
have positioned your portfolio.
Portfolio positioning and performance
We manage a single portfolio comprising three investment pillars, each with an
active role in portfolio construction. We invest across a range of assets
both directly and through our global network and specialist fund managers,
aligned to our long-term themes. These investments are overlaid with macro
exposure management and currency positioning, as well as careful risk
management.
All three investment pillars - Quoted Equities, Private Investments and
Uncorrelated Strategies - delivered positive contributions to NAV during the
period, led by Private Investments.
Our Quoted Equities pillar, which remains our single largest allocation at
43.3% of NAV, returned 15% over the period, benefitting from our core themes,
both through direct investments and via specialist managers. Our overall level
of exposure to public equities came down in the year, though this masks an
increase in allocation to external funds and a reduction in direct equity
exposure. Within the direct equity book, we have transitioned to a more
differentiated and concentrated mandate with an increasing focus on emerging
markets and commodity related equities. Notably, our geographic allocation
shifted significantly, with marked increases in European and Asian markets,
leaving us less exposed to North America.
Our Private Investments pillar delivered a strong return of 18.3%, supported
by improving M&A and IPO conditions and continued growth in high-quality
long-term compounders. Drivers of this performance included strong
realisations across favoured technology themes including artificial
intelligence (Scale AI) and fintech (Webull and Xapo Bank), also expressed in
the strong growth from our private direct portfolio which returned 47.4%. This
included contributions from SpaceX, the private space launch and satellite
communications company, for which we recorded a significant valuation uplift
during the second half of the year. Meanwhile our specialist fund partners
also contributed positively, returning 10.2% and generating healthy
distributions, ensuring the private funds portfolio continued to be
self-funding over the period.
We remained highly selective in our deployment of new private investments,
focusing on our highest conviction themes and ideas. Notably, we further
increased our investment in SpaceX in the second half of the year, following
which we benefitted from the company's latest valuation uplift, making it the
largest direct position in our Private Investments portfolio. We also
initiated two new high-conviction investments in DataBricks, a Data
Intelligence Platform, and Anthropic, an AI safety and research company.
Uncorrelated Strategies again acted as a steady diversifier, supported by
gains in gold and solid performance from absolute return strategies. This
pillar generated a return of 12.1%.
Outlook
US policy uncertainty, tariffs and AI developments kept investor focus on the
United States last year. Yet, the investment returns of non-US markets, which,
for only the third occasion in 15 years, bettered the return of US markets by
some margin, could be considered another telling observation.
I have outlined in this letter the big, structural changes that we believe
will dominate the investing outlook; the degree to which markets of the Rest
of the World bettered the US, may well be a response to these factors. More
critically, we may be early in these trends, corroborated as they have been by
weakness in the US dollar and renewed vigour in parts of the commodity
complex.
At the same time, AI will continue to dominate outcomes, and with initial
enthusiasm largely focused on the innovators and their supply chains,
attention will surely move to include perceived winners and losers in the
application of AI. Whilst we judge the private arena as the optimal space to
access innovators, selectivity in public markets should also offer notable
opportunity.
In an environment rich with a new cast of leaders and talent around the world,
we are excited by the opportunities to deploy capital both directly, and
indeed with specialist fund managers, with a conviction that the opportunity
for skilled stock selection is now meaningfully more attractive.
I have also referenced an unusually complex geopolitical and economic
environment; one that presents quite an array of risks. Mindful of this, we
have made adjustment to our positioning. We have a more diversified set of
exposures, many at lower levels of valuation than is the case for the United
States. Our meaningful and closely managed exposure to Uncorrelated Strategies
should provide further insulation.
Looking ahead, our strong and expanding global network, experienced investment
team, and diversified portfolio, place us well to navigate this environment:
unpredictable but also ripe with significant opportunity, much of it new.
Broadly, our focus remains unchanged: to help shareholders compound wealth
over the long term through a diversified and resilient global portfolio.
Alongside investment performance and long-term value creation, narrowing the
share price discount and strengthening shareholder engagement remain key
priorities.
We thank you for your continued trust and support.
Yours sincerely,
Maggie Fanari
Chief Executive Officer, J. Rothschild Capital Management Limited
MANAGER'S REPORT - EXTRACTS
Performance highlights
Our NAV per share total return for the year was 13.5% with double-digit
returns across all three investment pillars. This takes the annualised return
since inception to 10.6%, underscoring our commitment to delivering healthy
returns over the long term.
Portfolio performance was ahead of our absolute reference hurdle, CPI plus 3%,
which returned 6.4%, while our relative hurdle, ACWI (50% £), delivered
17.1%.
Portfolio highlights
Our strong performance was driven by a broad range of factors:
• Quoted Equities generated a 15.0% return, led by our specialist managers
focused on biotech, Japan and emerging markets. Our direct investments
benefitted from European aerospace and defence, and were negatively impacted
by some idiosyncratic stock picks. Overall the pillar contributed 6.9% to our
NAV.
• Private Investments saw a return of 18.3% and contributed 6.5% to performance.
Key drivers of performance were realisations of £232m due to increased
M&A and IPO activity in technology, while SpaceX benefitted from strong
growth and increasing investor demand. The funds book also contributed
positively and generated healthy distributions, resulting in net realisations
for the second consecutive year.
• Uncorrelated Strategies had a return of 12.1% and contributed 3.4% to our NAV.
This was led by our exposure to absolute return and credit managers. Gold
contributed positively with a small offset from interest rate sensitive
investments and carbon credits.
Currency translation was the largest headwind during the period, as the
continued weakening of the US dollar against sterling resulted in a negative
translation effect on our global portfolio. While the US dollar fell nearly 8%
against sterling over the year, our active currency hedging reduced the impact
on the portfolio. The net impact of currency, after hedging, was -2.9%. The
portfolio returns were also offset by operating costs and interest on our
borrowings and benefitted from the accretion on buybacks.
Asset allocation, returns and contribution
Asset category 2024 2025 2025 2025
% NAV(1) % NAV(1) Return(2) % Contribution
Quoted Equities(3) 46.2% 43.3% 15.0% 6.9%
Private Investments(3) 33.4% 31.7% 18.3% 6.5%
Uncorrelated Strategies 23.8% 25.6% 12.1% 3.4%
Currency -1.1% 0.5% n/a -2.9%
Total investments 102.3% 101.1% n/a 13.9%
Liquidity, borrowings and other(4) -2.3% -1.1% n/a -0.4%
Total 100.0% 100.0% 13.5% 13.5%
1 The % NAV reflects the market value of the positions (excluding notional
exposure from derivatives).
2 Returns are estimated, local currency returns, taking into account
derivatives.
3 Included in the NAV is an estimated adjustment of £175m/4.3% to reallocate
quoted positions held within private funds (2024: £159m/4.3%). The
return/contribution from these positions is in Private Investments.
4 Including interest, expenses, and estimated accretion benefit of 0.9% from
share buybacks (2024: 0.8%).
RISK MANAGEMENT - EXTRACT
Risk management and internal control
The principal risks facing RIT are both financial and operational. The ongoing
process for managing the risks, and setting the overall risk appetite and risk
parameters, is the responsibility of the Board and the Audit and Risk
Committee. The risk evaluation is based on an assessment of the principal and
emerging risks facing the Group, and their mitigating actions. The Manager is
responsible for the implementation and day-to-day management of risk and the
system of internal controls throughout the Group.
The Board sets the portfolio risk parameters within which JRCM operates. This
involves an assessment of the nature and level of risk within the portfolio
using qualitative and quantitative methods.
The Board is ultimately responsible for the Group's system of internal
controls, and has delegated the supervision of the internal control system to
the Audit and Risk Committee. Such systems are designed to manage, rather than
eliminate, the risk of failure to achieve business objectives and, as such,
can provide only reasonable and not absolute assurance against any material
misstatement or loss.
As an investment company, RIT is exposed to financial risks inherent in its
portfolio, which are primarily market-related and common to any portfolio with
significant exposure to equities and other financial assets. The ongoing
portfolio and risk management includes an assessment of the macroeconomic and
geopolitical factors that can influence market risk, as well as consideration
of investment-specific risk factors.
Your Company's broad and flexible investment mandate allows the Manager to
take a relatively unconstrained approach to asset allocation and utilise
whatever action is considered appropriate in mitigating any attendant risks to
the portfolio.
With a high degree of volatility in markets, the rapid integration of AI into
everyday life, and continued geopolitical tensions, risk management remains
critical. The portfolio risk management approach undertaken by the Manager,
and considered regularly by the Board, is designed to produce a healthy
risk-adjusted return over the long term, through careful portfolio
construction, security selection and the considered use of hedging.
As an investment business, the vast majority of the day-to-day activities
involve the measurement, evaluation and management of risk and reward. With a
corporate objective which includes an element of capital preservation, the
culture and practice of seeking to protect the NAV from undue participation in
down markets through the cycles is well-established. However, it is important
to recognise that a carefully designed risk management and internal control
system can only aim to reduce the probability or mitigate the impact; it
cannot remove the risk. With a global investment portfolio having meaningful
exposure to equities, rather than a pure absolute return mandate, RIT's NAV
will not be immune to either falling markets and/or volatility in currency
markets. Equally, with a diversified set of individual and typically
uncorrelated, high return-seeking drivers, the portfolio could encounter
occasions when the level of volatility results in negative alpha in the short
term.
As a permanent capital vehicle, and unlike open-ended funds, we do not need to
manage the portfolio to meet redemptions. With sizeable assets relative to our
modest borrowings and ongoing liabilities, as confirmed later in this section,
we do not consider the Company's viability or going concern to represent
principal risks. Nevertheless, and in particular at times of market stress,
the Manager utilises a detailed, day-to-day liquidity risk management
framework to help effectively manage the balance sheet, ensuring sufficient
liquidity to meet portfolio needs.
Operational and other risks include those related to the legal environment,
regulation, taxation, cyber security, climate and other areas where internal
or external factors could result in financial or reputational loss. These are
also managed by JRCM with regular reporting to, and review by, the Audit and
Risk Committee and the Board.
Principal risks
The Board has carried out a robust assessment of the emerging and principal
risks facing the Company, with input from the Audit and Risk Committee, as
well as the Manager.
Following this assessment, the Board has concluded that there are no material
emerging risks, and the principal risks are described below:
Risk Mitigation
Investment strategy risk The Board is responsible for monitoring the investment strategy to ensure it
As an investment company, a key risk is that the investment strategy, guided is consistent with the Investment Policy and appropriate to deliver
by the Investment Policy: performance in line with the Corporate Objective. The Directors receive a
detailed monthly report from the Manager to enable them to monitor investment
"To invest in a widely diversified, international portfolio across a range of performance, attribution, and exposure. They also receive a comprehensive
asset classes, both quoted and unquoted; to allocate part of the portfolio to investment report from the Manager in advance of the quarterly Board meetings.
exceptional managers in order to ensure access to the best external talent
available." The overall risk appetite is set by the Board, with portfolio risk managed by
JRCM within prescribed limits. This involves careful assessment of the nature
does not deliver the Corporate Objective: and level of risk within the portfolio using qualitative and quantitative
methods.
"To deliver long-term capital growth, while preserving shareholders' capital;
to invest without the constraints of a formal benchmark, but to deliver for The JRCM Investment Committee meets regularly to review overall investment
shareholders increases in capital value in excess of the relevant indices over performance, portfolio exposure and significant new investments.
time."
Discount risk To manage this risk, and to reduce the volatility for shareholders, the Board
Investment trust shares trade at a price which can be at a discount or premium monitors the level of discount/ premium at which the shares trade and the
relative to their net asset value. If trading at a discount, there is a risk Group has authority to buy back its existing shares when deemed to be in the
that a widening of the discount may result in shareholders achieving a return best interest of the Company and its shareholders. Buying back shares at a
which does not reflect the underlying investment performance of the Company. discount signals the Board's confidence in the overall approach and the NAV to
shareholders, and is accretive to the NAV per share return.
In addition to the focus on investment performance, the Group is continuing to
invest in developing its investor relations activity and overall approach to
communications to help ensure that shareholders have the best understanding of
the strategy and approach to investing.
Market risk The Group has a widely diversified investment portfolio which significantly
reduces the exposure to individual asset price risk. Detailed portfolio
Price risk valuations and exposure analysis are prepared regularly and form the basis for
RIT invests in a number of asset categories including stocks, equity funds, the ongoing risk management and investment decisions. In addition, regular
private investments, absolute return and credit, real assets, government bonds scenario analysis is undertaken to assess likely downside risks and
and derivatives. The portfolio is therefore exposed to the risk that the fair sensitivity to broad market changes, as well as assessing the underlying
value of these investments will fluctuate because of changes in market prices. correlations amongst the separate asset classes.
Currency risk Currency exposure is managed via an overlay strategy, typically using a
Consistent with the Investment Policy, the Group invests globally in assets combination of currency forwards and/or options to adjust the natural currency
denominated in currencies other than sterling as well as adjusting currency of the investments in order to achieve a desired net exposure. The geographic
exposure to either seek to hedge and/or enhance returns. This approach exposes revenue breakdown for stocks as well as correlations with other asset classes
the portfolio to currency risk as a result of changes in exchange rates. are also considered as part of our hedging strategy.
Interest rate risk Exposure management is undertaken with a variety of techniques including using
In addition, the Group is exposed to the direct and indirect impact of changes equity index and interest rate futures and options to hedge or to increase
in interest rates. equity and interest rate exposure depending on overall macroeconomic and
market views.
Each of the above market risk categories can be influenced by changes in
geopolitical risk.
Liquidity risk The Group manages its liquid resources to ensure sufficient cash is available
Liquidity risk is the risk that the Group will have difficulty in meeting its to meet its expected needs. It monitors the level of short-term funding and
obligations in respect of financial liabilities as they fall due. balances the need for access to such funding and liquidity, with the long-term
funding needs of the Group, and the desire to achieve investment returns.
The Group has significant investments in and commitments to direct private Covenants embedded within the banking facilities and long-term notes are
investments and funds which are inherently illiquid. In addition, the Group monitored on an ongoing basis for compliance, and form part of the regular
holds investments with other third-party organisations which may require stress tests.
notice periods in order to be realised. Capital commitments could, in theory,
be drawn with minimal notice. In addition, the Group may be required to In addition, existing cash reserves, as well as the significant liquidity that
provide additional margin to support derivative financial instruments. could be realised from the sale or redemption of portfolio investments and
undrawn, committed borrowings, could all be utilised to meet short‑term
funding requirements if necessary. As a closed-ended company, there is no
requirement to maintain liquidity to service investor redemptions. The
Depositary, BNP Paribas S.A, London Branch (BNP) has separate responsibilities
in monitoring the Company's cash flow.
Credit risk The majority of the exposure to credit risk within the absolute return and
Credit risk is the risk that a counterparty to a financial instrument held by credit portfolio is indirect exposure as a result of positions held within
the Group will fail to meet an obligation which could result in a loss to the funds managed externally. These are typically diversified portfolios monitored
Group. by the third-party managers themselves, as well as through JRCM's ongoing
portfolio management oversight.
Certain investments held within the absolute return and credit portfolio are
exposed to credit risk, including in relation to underlying positions held by Listed transactions are settled on a delivery versus payment basis using a
funds. wide pool of brokers. Cash holdings and margin balances are also divided
between a number of different financial institutions, whose credit ratings are
Substantially all of the listed portfolio investments capable of being held in regularly monitored.
safe custody, are held by BNP as custodian and depositary. Bankruptcy or
insolvency of BNP may cause the Group's rights with respect to securities held All assets held directly by the custodian are in fully segregated client
by BNP to be delayed. accounts. Other than where local market regulations do not permit it, these
accounts are designated in RIT's name. The custodian's most recent credit
Unrealised profit on derivative financial instruments held by counterparties rating was A+ from Standard & Poor's (S&P).
is potentially exposed to credit risk in the event of the insolvency of a
broker counterparty.
Key person dependency This risk is closely monitored by the Board, through its oversight of the
In common with other investment trusts, investment decisions are the Manager's incentive schemes (on which it has received external advice) as well
responsibility of a small number of key individuals within the Manager. If for as the succession plans for key individuals. The potential impact is also
any reason the services of these individuals were to become unavailable, there reduced by an experienced Board of Directors, with distinguished backgrounds
could be a significant impact on our business. in financial services and business.
Climate-related risk We do not consider climate-related risks to have material, specific impacts on
Ongoing climate changes may impact either our own business, the external our own asset management businesses as distinct from the investment portfolio.
managers with whom we invest, and/or the underlying portfolio investments. For Our Manager continues to monitor, and minimise, the climate-related impacts of
our own business this could result in increased costs of complying with new our internal operations; we offset the carbon emissions categorised as Scope 1
regulations and/or changes to the way we operate. Portfolio companies could and Scope 2 emissions by the Greenhouse Gas (GHG schemes) Protocol as well as
see demand pressures, an increased cost of capital, tighter regulation or Scope 3 emissions resulting from staff commuting and business travel, through
increased taxation, all impacting profitability. participation in accredited schemes and we are taking steps to further develop
our understanding of our indirect emissions from our investment portfolio. We
Our ability to make climate-change disclosures may be impacted by our work with an external advisor to help us disclose emissions data, where
investment approach if the external fund managers with whom we invest do not available, for our directly held quoted equities portfolio in our annual Task
provide the desired information. Force on Climate-related Financial Disclosures (TCFD) report.
More frequent extreme weather could disrupt businesses, travel, global supply JRCM is a signatory to the UN Principles for Responsible Investment (UN PRI),
chains and profitability. and the Board has worked with our Manager to develop JRCM's Responsible
Investment Framework & Policy, updated in 2026, and which incorporates
environmental factors into our investment approach. This allows us to consider
the potential wider impacts of climate change risks to our investments.
We monitor developments in regulation and disclosures and seek as far as
possible to prepare for future changes.
The Group's adoption of fair value in relation to its investments means that
the climate-related risks recognised by market participants are incorporated
in the valuations.
Legal and regulatory risk The Operational Risk Committee of JRCM provides oversight of all legal,
As an investment trust, RIT's operations are subject to wide-ranging laws and regulatory and other operational risks across the Group. This Committee
regulations including in relation to the Listing Rules and Disclosure, reports key findings to JRCM management and the Audit and Risk Committee.
Guidance and Transparency Rules of the FCA's Primary Markets function, the
Companies Act 2006, corporate governance codes, as well as continued JRCM employs a general counsel and a compliance officer as well as other
compliance with relevant tax legislation, including ongoing compliance with personnel with experience of legal, regulatory, disclosure and taxation
the rules for investment trusts. JRCM is authorised and regulated by the FCA matters. In addition, specialist external advisers are, if required, engaged
and acts as the Alternative Investment Fund Manager. to supplement internal resources in relation to complex, sensitive or emerging
matters.
The financial services sector continues to experience regulatory change at
national and international levels, including in relation to climate change. Where necessary, co-investments and other transactions are subject to review
Failure to act in accordance with these laws and regulations could result by the Conflicts Committee.
in fines, censure or other losses including taxation or reputational loss.
Co-investments and other arrangements with related parties may result in
conflicts of interest.
Operational risk Systems and control procedures are the subject of continued development and
Operational risks are those arising from inadequate or failed processes, regular review including by internal audit. During the year the Audit and Risk
people and systems or other external factors. Committee reviewed, and satisfied itself with, the Manager's approach to
derivatives risk management, counterparty risk management and testing selected
Key operational risks include reliance on third-party managers and suppliers, material controls.
dealing errors, processing failures, pricing or valuation errors, fraud and
reliability of core systems. Processes are in place to ensure the recruitment and ongoing training of
appropriately skilled staff within key operational functions. Suitable
remuneration policies are in place to encourage staff retention and the
delivery of the Group's objectives over the medium term. Independent pricing
sources are used where available, and performance is subject to regular
monitoring. In relation to more subjective areas such as private investments
and property, the valuations are estimated by experienced staff and specialist
external managers and valuers using industry standard approaches, with
the final decisions taken by the independent Valuation Committee, and subject
to external audit as part of the year-end financial statements.
A business continuity and disaster recovery plan is maintained and includes
the ability to use a combination of an offsite facility and cloud resources to
mirror our production systems in the event of any business disruption. This
was satisfactorily tested during the year.
Cyber security risk Cyber security continues to receive an enhanced focus, with policies, systems
RIT is dependent on technology to support key business functions and the and processes designed to combat the ongoing risk developments in this area.
safeguarding of sensitive information. As a result, RIT is exposed to the Such processes are kept under regular review including multi‑factor
increasingly sophisticated nature of cyber attacks, and given the growth in AI authentication, ensuring effective firewall policies, internet and email
and the ability to utilise this for attempts at fraud and data breaches. gateway security and anti-virus software. This is complemented with staff
awareness programmes (including periodic mock-phishing exercises) which
RIT is therefore at risk of potential loss or harm as a result of significant monitor the effectiveness of our staff at identifying potential risks. We also
disruption to information technology systems, including from a potential cyber test our IT business continuity plan at least once every year.
attack, which may result in financial losses, the inability to perform
business-critical functions, loss or theft of confidential data, and resulting The process for assessing, identifying and managing cybersecurity risks is
legal or reputational damage. managed on a day-to-day basis by the Manager's IT team and overseen by the
JRCM Operational Risk Committee. Any material risks are reported to the Audit
and Risk Committee.
The Manager maintains the 'Cyber Essentials Plus' security certification, the
highest level of certification offered by the National Cyber Security Centre,
the UK Government's technical authority for cyber threats. This review is
performed on an annual basis, the most recent completed in October 2025.
Additionally, the Group has specific insurance in place to cover information
security and cyber risks. The Manager periodically also engages external
consultants to assess the robustness of its IT systems.
Corporate Governance Report - Extract
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and Accounts in
accordance with applicable United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the Group
and Parent Company financial statements in accordance with UK adopted
international accounting standards (UK adopted IAS). Under company law the
Directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group and
the Parent Company and of the profit or loss of the Group and the Parent
Company for that period.
In preparing these financial statements the Directors are required to:
• select suitable accounting policies in accordance with IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors and then apply them
consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• present information, including accounting policies, in a manner that provides
relevant, reliable, comparable and understandable information;
• provide additional disclosures when compliance with the specific requirements
in UK adopted IAS is insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the Group and Parent
Company financial position and financial performance;
• in respect of the Group financial statements, state whether UK adopted IAS
have been followed, subject to any material departures disclosed and explained
in the financial statements;
• in respect of the Parent Company financial statements, state whether UK
adopted IAS have been followed, subject to any material departures disclosed
and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Parent Company and the Group will continue
in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Parent Company's and Group's transactions
and disclose with reasonable accuracy at any time the financial position of
the Parent Company and the Group and enable them to ensure that the Parent
Company and the Group financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Group and Parent
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors' Report, Directors' Remuneration
Report and corporate governance statement that comply with that law and those
regulations. The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the Parent Company's
website.
The Directors confirm, to the best of their knowledge:
• that the consolidated financial statements, prepared in accordance with UK
adopted IAS, give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Parent Company and undertakings included in
the consolidation taken as a whole;
• that the Annual Report, including the Strategic Report, includes a fair review
of the development and performance of the business and the position of the
Parent Company and undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and uncertainties
that they face; and
• that they consider the Annual Report and Accounts, taken as a whole, is fair,
balanced and understandable and provides the information necessary for
shareholders to assess the Parent Company's position, performance, business
model and strategy.
FINANCIAL STATEMENTS - EXTRACTS
Consolidated income statement
Year ended 31 December 2025 2024
£ million Revenue Capital Total Revenue Capital Total
Investment income 37.2 - 37.2 29.1 - 29.1
Other income 0.3 - 0.3 0.3 - 0.3
Gains/(losses) on fair value investments - 498.6 498.6 - 345.9 345.9
Gains/(losses) on monetary items and borrowings - (2.3) (2.3) - 1.6 1.6
37.5 496.3 533.8 29.4 347.5 376.9
Expenses
Operating expenses (28.7) (12.3) (41.0) (31.9) (6.6) (38.5)
Profit/(loss) before finance costs and taxation 8.8 484.0 492.8 (2.5) 340.9 338.4
Finance costs (6.7) (26.8) (33.5) (6.7) (26.7) (33.4)
Profit/(loss) before taxation 2.1 457.2 459.3 (9.2) 314.2 305.0
Taxation - - - - - -
Profit/(loss) for the year 2.1 457.2 459.3 (9.2) 314.2 305.0
Earnings/(loss) per ordinary share - basic 1.5p 326.7p 328.2p (6.4p) 217.6p 211.2p
Earnings/(loss) per ordinary share - diluted 1.5p 325.5p 327.0p (6.3p) 216.5p 210.2p
The total column of this statement represents the Group's consolidated income
statement, prepared in accordance with UK adopted international accounting
standards (UK adopted IAS). The supplementary revenue and capital columns are
both prepared under guidance published by the Association of Investment
Companies (AIC). All items in the above statement derive from continuing
operations.
Consolidated statement of comprehensive income
Year ended 31 December
2025 2024
£ million Revenue Capital Total Revenue Capital Total
Profit/(loss) for the year 2.1 457.2 459.3 (9.2) 314.2 305.0
Revaluation gain/(loss) on property, plant and equipment - 0.5 0.5 - 0.3 0.3
Actuarial gain/(loss) in defined benefit pension plan (0.1) - (0.1) 0.3 - 0.3
Deferred tax (charge)/credit allocated to actuarial gain/(loss) 0.1 - 0.1 (0.1) - (0.1)
Total comprehensive income/(expense) for the year 2.1 457.7 459.8 (9.0) 314.5 305.5
Other comprehensive income items are never reclassified to profit or loss.
Consolidated Balance Sheet
At 31 December
£ million 2025 2024
Non-current assets
Investments held at fair value 4,015.3 3,792.1
Investment property 32.7 32.7
Property, plant and equipment 22.3 21.7
Retirement benefit asset - 0.2
Derivative financial instruments 0.3 53.7
4,070.6 3,900.4
Current assets
Derivative financial instruments 35.8 38.5
Other receivables 61.2 123.1
Amounts owed by group undertakings 0.0 -
Cash at bank 220.6 189.4
317.6 351.0
Total assets 4,388.2 4,251.4
Current liabilities
Borrowings (127.4) (160.2)
Derivative financial instruments (2.0) (69.8)
Other payables (24.4) (77.5)
Amounts owed to group undertakings (13.9) (16.3)
(167.7) (323.8)
Net current assets/(liabilities) 149.9 27.2
Total assets less current liabilities 4,220.5 3,927.6
Non-current liabilities
Borrowings (174.8) (173.7)
Derivative financial instruments (0.4) (17.5)
Deferred tax liability - (0.1)
Provisions (3.0) (3.0)
Lease liability (2.2) (2.1)
(180.4) (196.4)
Net assets 4,040.1 3,731.2
Equity attributable to owners of the Company
Share capital 141.1 156.8
Share premium 45.7 45.7
Capital redemption reserve 52.0 36.3
Own shares reserve (20.1) (25.3)
Capital reserve 3,849.4 3,548.3
Revenue reserve (39.1) (41.2)
Revaluation reserve 11.1 10.6
Total equity 4,040.1 3,731.2
Net asset value per ordinary share - basic 2,932p 2,627p
Net asset value per ordinary share - diluted 2,921p 2,614p
The financial statements were approved by the Board and authorised for issue
on 2 March 2026.
Consolidated Statement of Changes in Equity
Capital Own
Share Share redemption shares Capital Revenue Revaluation Total
£ million capital premium reserve reserve reserve reserve reserve equity
Balance at 1 January 2024 156.8 45.7 36.3 (36.7) 3,393.1 (32.2) 10.3 3,573.3
Profit/(loss) for the year - - - - 314.2 (9.2) - 305.0
Revaluation gain/(loss) on property, plant and equipment - - - - - - 0.3 0.3
Actuarial gain/(loss) in defined benefit plan - - - - - 0.3 - 0.3
Deferred tax (charge)/credit allocated to actuarial gain/(loss) - - - - - (0.1) - (0.1)
Total comprehensive income/(expense) for the year - - - - 314.2 (9.0) 0.3 305.5
Dividends paid - - - - (56.5) - - (56.5)
Purchase of treasury shares - - - - (80.4) - - (80.4)
Movement in own shares reserve - - - 11.4 - - - 11.4
Movement in share-based payments - - - - (22.1) - - (22.1)
Balance at 31 December 2024 156.8 45.7 36.3 (25.3) 3,548.3 (41.2) 10.6 3,731.2
Balance at 1 January 2025 156.8 45.7 36.3 (25.3) 3,548.3 (41.2) 10.6 3,731.2
Profit/(loss) for the year - - - - 457.2 2.1 - 459.3
Revaluation gain/(loss) on property, plant and equipment - - - - - - 0.5 0.5
Actuarial gain/(loss) in defined benefit plan - - - - - (0.1) - (0.1)
Deferred tax (charge)/credit allocated to actuarial gain/(loss) - - - - - 0.1 - 0.1
Total comprehensive income/(expense) for the year - - - - 457.2 2.1 0.5 459.8
Dividends paid - - - - (60.2) - - (60.2)
Purchase of treasury shares - - - - (89.0) - - (89.0)
Cancellation of treasury shares(1) (15.7) - 15.7 - - - - -
Movement in own shares reserve - - - 5.2 - - - 5.2
Movement in share-based payments - - - - (6.9) - - (6.9)
Balance at 31 December 2025 141.1 45.7 52.0 (20.1) 3,849.4 (39.1) 11.1 4,040.1
(1) On 21 May 2025, the Company cancelled 15.7 million ordinary shares of
£1 each which were held in treasury.
Consolidated Cash Flow Statement
Year ended 31 December Consolidated cash flow
£ million 2025 2024
Cash flows from operating activities:
Cash inflow/(outflow) before taxation and interest 240.4 123.2
Interest paid (33.6) (33.4)
Net cash inflow/(outflow) from operating activities 206.8 89.8
Cash flows from investing activities:
Sale/(purchase) of property, plant and equipment (0.4) (0.1)
Investments in subsidiary undertakings - -
Divestments from subsidiary undertakings - -
Net cash inflow/(outflow) from investing activities (0.4) (0.1)
Cash flows from financing activities:
Repayment of borrowings (384.1) (288.8)
Drawing of borrowings 362.0 339.7
Purchase of ordinary shares by EBT(1) (6.9) (13.7)
Purchase of ordinary shares into treasury (89.0) (80.4)
Dividends paid (60.2) (56.5)
Net cash inflow/(outflow) from financing activities (178.2) (99.7)
Increase/(decrease) in cash in the year 28.2 (10.0)
Cash at the start of the year 189.4 204.3
Effect of foreign exchange rate changes on cash 3.0 (4.9)
Cash at the year end 220.6 189.4
(1) Shares are disclosed in the own shares reserve on the consolidated
balance sheet.
NOTES TO THE FINANCIAL STATEMENTS - EXTRACTS
Earnings per ordinary share - basic and diluted
The basic earnings per ordinary share for 2025 is based on the profit of
£459.3 million (2024: £305.0 million) and the weighted average number of
ordinary shares in issue during the period of 139.9 million (2024: 144.4
million). The weighted average number of shares is adjusted for shares held in
the EBT and in treasury in accordance with IAS 33 - Earnings per share.
£ million 2025 2024
Net revenue profit/(loss) 2.1 (9.2)
Net capital profit/(loss) 457.2 314.2
Total profit/(loss) for the year 459.3 305.0
Weighted average (million) 2025 2024
Number of shares in issue(1) 147.2 156.8
Shares held in EBT (1.1) (1.2)
Shares held in treasury(1) (6.2) (11.2)
Basic shares 139.9 144.4
(1) On 21 May 2025, the Company cancelled 15.7 million ordinary shares of £1
each which were held in treasury.
pence 2025 2024
Revenue earnings/(loss) per ordinary share - basic 1.5 (6.4)
Capital earnings/(loss) per ordinary share - basic 326.7 217.6
Total earnings per share - basic 328.2 211.2
The diluted earnings per ordinary share for the period is based on the basic
shares (above) adjusted for the effect of share-based payments awards for the
period.
Weighted average (million) 2025 2024
Basic shares 139.9 144.4
Effect of share-based payment awards 0.5 0.7
Diluted shares 140.4 145.1
pence 2025 2024
Revenue earnings/(loss) per ordinary share - diluted 1.5 (6.3)
Capital earnings/(loss) per ordinary share - diluted 325.5 216.5
Total earnings per ordinary share - diluted 327.0 210.2
Net asset value per ordinary share - basic and diluted
Net asset value per ordinary share is based on the following data:
31 December 2025 2024
Net assets (£ million) 4,040.1 3,731.2
Number of shares in issue (million)(1) 141.1 156.8
Shares held in EBT (million) (1.0) (1.1)
Shares held in treasury (million) (1) (2.3) (13.6)
Basic shares (million) 137.8 142.1
Effect of share-based payment awards (million) 0.5 0.7
Diluted shares (million) 138.3 142.8
(1) On 21 May 2025, the Company cancelled 15.7 million ordinary shares of £1
each which were held in treasury.
31 December 2025 2024
pence pence
Net asset value per ordinary share - basic 2,932 2,627
Net asset value per ordinary share - diluted 2,921 2,614
Dividends
2025 2024 2025 2024
Pence per Pence per £ million £ million
share share
Dividends paid in year 43.0 39.0 60.2 56.5
The above amounts were paid as distributions to equity holders of the Company
in the relevant year from accumulated capital profits.
Dividends are not paid on shares held in treasury and the EBT waives its
rights to all dividends.
On 28 February 2025 the Board declared a first interim dividend of 21.5 pence
per share in respect of the year ended 31 December 2025 that was paid on 25
April 2025. A second interim dividend of 21.5 pence per share was declared by
the Board on 6 August 2025 and paid on 31 October 2025.
The Board declares the payment of a first interim dividend of 22.5 pence per
share in respect of the year ending 31 December 2026. This will be paid on 24
April 2026 to shareholders on the register on 7 April 2026, and funded from
the accumulated capital profits.
Glossary and Alternative Performance Measures
Glossary
Within the Annual Report and Accounts, we publish certain financial measures
common to investment trusts. Where relevant, these are prepared in accordance
with guidance from the AIC, and this glossary provides additional information
in relation to them.
Alternative performance measures (APMs): APMs are numerical measures of the
Company's current, historical or future financial performance, financial
position or cash flows, other than financial measures defined or specified in
the Company's applicable financial framework - namely UK adopted IAS and the
AIC SORP. They are denoted with an * in this section.
CPI: The CPI refers to the United Kingdom Consumer Price Index as calculated
by the Office for National Statistics and published monthly. It is the UK
Government's target measure of inflation and, from 1 January 2023, is used as
a measure of inflation in one of the Company's KPIs, CPI plus 3.0% per annum.
Gearing*: Gearing is a measure of the level of debt deployed within the
portfolio. The ratio is calculated in accordance with AIC guidance as total
assets, net of cash, divided by net assets and expressed as a 'net'
percentage, e.g. 110% would be shown as 10%.
£ million 2025 2024
Total assets 4,388.2 4,251.4
Less: cash (220.6) (189.4)
Sub total(a) 4,167.6 4,062.0
Net assets(b) 4,040.1 3,731.2
Gearing(a/b) 3.2% 8.9%
Leverage: Leverage, as defined by the UK Alternative Investment Fund Managers
Directive (AIFMD), is any method which increases the exposure of the
portfolio, whether through borrowings or leverage embedded in derivative
positions or by any other means.
ACWI (50% £): The MSCI All Country World Index is a total return, market
capitalisation-weighted equity index covering major developed and emerging
markets. Described in the Company's Report and Accounts as ACWI (50% £), this
is one of the Company's KPIs or reference hurdles and, since its introduction
in 2013, has incorporated a 50% sterling measure. This is calculated using 50%
of the ACWI measured in sterling and therefore exposed to translation risk
from the underlying foreign currencies. The remaining 50% uses a
sterling-hedged ACWI from 1 January 2015 (from when this is readily
available). This incorporates hedging costs, which the portfolio also incurs,
to protect against currency risk and is an investable index. Prior to this
date it uses the index measured in local currencies. Before December 1998,
when total return indices were introduced, the index was measured using a
capital-only version.
Net asset value (NAV) per share: The NAV per share is calculated by dividing
the total value of all the assets of the trust less its liabilities (net
assets) by the number of shares outstanding. Unless otherwise stated, this
refers to the diluted NAV per share, with debt held at fair value.
NAV total return*: The NAV total return for a period represents the change in
NAV per share, adjusted to reflect dividends paid during the period. The
calculation assumes that dividends are reinvested in the NAV at the month end
following the NAV going ex-dividend. The NAV per share at 31 December 2025 was
2,921 pence, an increase of 307 pence, or 11.7%, from 2,614 pence at the
previous year end. As dividends totalling 43 pence per share were paid during
the year, the effect of reinvesting the dividends in the NAV is 1.8%, which
results in a NAV total return of 13.5%. The since inception return is
calculated using the NAV per share at 2 August 1988.
Net quoted equity exposure: This is the estimated level of exposure that the
trust has to listed equity markets. It includes the assets held in the quoted
equity category of the portfolio adjusted for the notional exposure from
quoted equity derivatives, as well as estimated cash balances held by
externally-managed funds, estimated exposure levels from hedge fund managers,
and an estimate of quoted equities held in private investment funds.
Notional: In relation to derivatives, this represents the estimated exposure
that is equivalent to holding the same underlying position through a cash
security.
Ongoing charges figure (OCF)*: As a self-managed investment trust with
operating subsidiaries, the calculation of the Company's OCF requires
adjustments to the total operating expenses. In accordance with AIC guidance,
the main adjustments are to remove non-recurring costs as well as direct
performance-related compensation from JRCM, as this is analogous to a
performance fee for an externally-managed trust.
£ million 2025 2024
Operating expenses 41.0 38.5
Adjustments (13.1) (10.4)
Ongoing charges(a) 27.9 28.1
Average net assets(b) 3,844 3,688
OCF(a/b) 0.73% 0.76%
Premium/discount: The premium or discount (or rating) is calculated by taking
the closing share price on 31 December 2025 and dividing it by the NAV per
share at 31 December 2025, expressed as a net percentage. If the share price
is above/below the NAV per share, the shares are said to be trading at a
premium/discount.
pence 31 December 31 December
2025 2024
Share price(a) 2,270 1,986
Diluted NAV per share(b) 2,921 2,614
Premium/(discount)(((a/b)-1)) (22.3%) (24.0%)
Share price total return or total shareholder return (TSR)*: The TSR for a
period represents the change in the share price adjusted to reflect dividends
reinvested on the ex-dividend date. Similar to calculating a NAV total return,
the calculation assumes the dividends are notionally reinvested at the daily
closing share price following the shares going ex-dividend. The share price on
31 December 2025 closed at 2,270 pence, an increase of 284 pence, or 14.3%,
from 1,986 pence at the previous year end. Dividends totalling 43 pence per
share were paid during the year, and the effect of reinvesting the dividends
in the share price is 2.6%, which results in a TSR of 16.9%. The TSR is one of
the Company's KPIs. The since inception return is calculated using the closing
share price on 2 August 1988.
Basis of presentation
The financial information for the year ended 31 December 2025 has been
extracted from the statutory accounts for that year. The auditor's report on
these accounts is unqualified and does not contain a statement under either
Section 498(2) or (3) of the Companies Act 2006. The statutory accounts will
be delivered to the Registrar of Companies following the Company's Annual
General Meeting.
The financial information for the year ended 31 December 2024 has been
extracted from the statutory accounts for that year which have been delivered
to the Registrar of Companies. The auditor's report on these accounts is
unqualified and does not contain a statement under either Section 498(2) or
(3) of the Companies Act 2006.
Report and Accounts
The full statutory accounts are available to be viewed or downloaded from the
Company's website at www.ritcap.com (http://www.ritcap.com) . Neither the
contents of the Company's website nor the contents of any website accessible
from the Company's website (or any other website) is incorporated into, or
forms part of, this announcement.
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. END FR JTMBTMTMMTTF
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