3rd Mar 2020 09:40
(Alliance News) - RIT Capital Partners PLC on Tuesday reported a double-digit net asset value rise, but saw its total return eclipsed by its benchmark index.
In 2019, net asset value per share rose 10% to 2,004 pence from 1,821p. Net assets surged 11% to an all-time high of GBP3.15 billion from GBP2.83 billion in the year prior.
Shares in the company were 3.17% higher at 1,983.38p in London on Tuesday morning.
Its NAV per share total return came in at 12% for the year, below the MSCI All Country World Index return of 24%, the investment firm said.
"Following 2018's broad equity market declines, 2019 saw resurgent markets," RIT said.
The company raised its full-year dividend by 3.0% to 34.0p per share from 33.0p in the year prior. Looking to 2020, it eyes another 3.0% rise in its payout to 35.0p.
RIT said: "Despite a muted outlook for global growth and earnings, 2019 was one of the best years for financial assets, with many investors prepared to take more risks than we considered warranted as risk-free rates moved lower and central banks eased policy. We maintained our cautious positioning, mindful of the risks inherent in both fully valued equity markets and historically low returns in bond markets. As a result, our returns lagged fully-invested market indices."
By Eric Cunha; [email protected]
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