One of the core components of the Moneyweek Investment Trust Portfolio is RIT Capital Partners (LSE: RCP). We hold it for its generally cautious approach and long-term record of capital preservation.
There’s an update on the portfolio as a whole in our Isa supplement (out 18 March) in the magazine (RIT stays in it!) but we were pleased to see that RIT’s just released final results back up the case for continuing to hold it.
It saw a total net asset value (NAV) return last year of 23.6% against 20% for the MSCI AC World Index – not bad given that the trust has relatively low overall equity exposure. This year hasn’t gone so well (for anyone).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The shares are currently off 10% in the year to date and trading on an 8% discount to their NAV. However the trust remains nicely defensive – only 35% in equities with hedges in place in the more expensive software stocks alongside a rising exposure to European value and to commodity sensitive positions, for example.
The managers note that they expect 2022 to be a tricky year, but also that, while “volatility can often feel uncomfortable... the flipside is that if markets react indiscriminately this can also provide opportunities”.
The analysts at Numis remain fans. They approve of the firm’s high level of exposure to unlisted investments (now well over 30% of the portfolio) and its careful approach to new positions.
The result of this has been a long term NAV total return of 11.3% a year, something that is “significantly ahead” of global equity markets, as well a tendency to participate in most of the market upside (74% of the tie since launch in 1988) and not much of the downside (38%).
It is an exceptional long term record – and the reason why it is staying in our portfolio, and staying as the “core long term recommendation in the Global Investment Companies sector” from Numis.
-
Rightmove: Asking prices edge closer to record peakAsking prices have been driven up by the top-end of the market, Rightmove has found. But how does the situation look in your area?
-
Coventry Building Society bids £780m for Co-operative Bank - what could it mean for customers?Coventry Building Society has put in an offer of £780 million to buy Co-operative Bank. When will the potential deal happen and what could it mean for customers?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsWe round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
-
The top investment funds to invest inTips Investors have favoured passive strategies as the end of the tax year approaches, while AI stocks continue to be a top pick. We look at the top funds, trusts and stocks backed by investors during March
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
