RIT Capital Partners reports full-year growth

(Sharecast News) - RIT Capital Partners reported a 13.5% net asset value per share total return for the year ended 31 December on Tuesday, alongside a 16.9% share price total return, as double-digit gains across all three of its investment pillars drove performance. The FTSE 250 firm said its NAV per share rose 11.7% to 2,921p from 2,614p a year earlier, unchanged from the preliminary figure disclosed in February, while the share price increased 14.3% to 2,270p from 1,986p.

It said the discount to NAV narrowed to 22.3% at year-end from 24% in 2024.

Since inception, the annualised share price total return has compounded at 10.7% per annum and NAV per share total return at 10.6% per annum.

"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," said chairman Philippe Costeletos.

"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."

Private investments generated an 18.3% return, contributing 6.5% to NAV, led by a 47.4% return from private direct investments, including realisations at an aggregate 112% above carrying value.

The company completed multiple exits totalling £232m, equivalent to 5.7% of year-end NAV and 18.6% of the private portfolio, marking its highest level of realisations since 2021.

Its specialist funds portfolio delivered a 10.2% return and remains self-funding. New investments included Anthropic and Databricks, alongside an increased exposure to SpaceX.

Quoted equities returned 15%, contributing 6.9% to NAV, with performance led by specialist managers focused on biotech, Japan and emerging markets.

Direct holdings benefitted from European aerospace and defence stocks, although some idiosyncratic names partially offset gains.

Uncorrelated strategies rose 12.1%, adding 3.4% to NAV, driven by absolute return and credit strategies as well as gold.

Active currency hedging mitigated the impact of an almost 8% fall in the US dollar against sterling, with the net currency impact after hedging at negative 2.9%.

"The global investment landscape continues to undergo a profound transformation with the impact of AI and a shifting geopolitical environment," commented Maggie Fanari, chief executive of J. Rothschild Capital Management, the company's investment manager.

"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."

The ongoing charges figure edged down to 0.73% from 0.76%.

Total dividends paid in the year rose 10.3% to 43p from 39p.

The board planned a 45p per share dividend for 2026, an above-inflation increase of 4.7%, to be paid in two equal instalments in April and October, marking the 13th successive year of dividend growth.

During the year, the company repurchased 3% of its issued share capital at a cost of £89m, adding an estimated 0.9% to NAV per share total return.

Total buybacks since 2023 now amounted to 11.2% of share capital, and the board said it remains committed to deploying capital to buy back shares while the discount persisted.

At 1123 GMT, shares in RIT Capital Partners were down 1.65% at 2,144p.

Reporting by Josh White for Sharecast.com.