REG - RIT Cap. Partners - Net Asset Value(s)

RIT Capital PartnersAnnouncement

07/02/2023 07:00

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RNS Number : 0825P  RIT Capital Partners PLC  07 February 2023

RIT CAPITAL PARTNERS PLC (LEI: P31Q1NLTW35JJGHA4667)

7 February 2023

 

 

December 2022 Preliminary Unaudited Net Asset Value

 

The preliminary, unaudited, diluted net asset value of RIT Capital Partners
plc (the Company) as at 31 December 2022 (with debt at fair value) was 2,388p
per £1 ordinary share (30 November 2022: 2,454p).

This represented a decline of -2.7% for the month of December, outperforming
the MSCI ACWI (50% £) which fell -5.0% in the month. The outperformance was
driven by our quoted equity book, and positive contributions from both our
absolute return & credit book as well as real assets.  The NAV reflected
the six-monthly revaluation of our direct private investments to 31 December
2022, and, as normal, the 30 September valuations from external managers for
~94% of our private funds (with around 6% at 31 December).

 

2022 Preliminary Unaudited Performance

 

Last year was one of the most challenging years for financial markets for more
than a decade, with a multitude of issues causing almost all asset classes to
decline during the year.  The S&P 500, the NASDAQ and the FTSE 250 closed
down -18%, -32% and -17% respectively.  Government bonds provided no safe
harbour, with long-term US and UK bonds losing -29% and -40% respectively.
Our NAV was not immune from these pressures, with a preliminary, unaudited NAV
per share total return (including dividends) of -13.3% compared to the ACWI of
-12.9%.  With inflation at multi-year highs, our inflation measure of
CPI+3.0%, was 13.5% for the year.

Key factors impacting our return for the year were:

 -  Retaining one of our lowest quoted equity exposures in a decade, coupled with
    action we took within the quoted equity portfolio, helped limit the
    downside.  Nevertheless, this book saw a negative contribution of around
    -6.7%;
 -  Private investments detracted by -6.2% of NAV, split broadly equally across
    the directs and funds, giving back a portion of the ~+34% NAV contribution
    across 2020 and 2021;
 -  Our absolute return and credit book held up reasonably well, albeit with some
    mixed performance from our macro managers;
 -  Through our currency positioning, we ensured that much of our exposure was
    held outside the weakening sterling, resulting in a positive contribution for
    the year.

While any short-term decline in NAV is uncomfortable, our aims and objectives
are long term.  Over the last three years our NAV returned a preliminary ~25%
against the ACWI at 17.7%.  Similarly, our 5-year performance of around 41%
compares favourably to the ACWI at 35.5%, and over 10-years our NAV (including
dividends) has grown by approximately 140%.

As normal at this stage of our year end, the preliminary NAV is an estimate
and remains subject to adjustment and audit.  Full details will be included
in the 2022 Annual Report & Accounts, which is expected to be published at
the end of February.

 

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