5th Mar 2019 09:53
LONDON (Alliance News) - RIT Capital Partners PLC on Tuesday said it remains cautious about future prospects for global markets as its net asset value fell in 2018.
The FTSE 250-listed investment company said NAV per share at the end of 2018 stood at 1,821 pence, down 1.0% from 1,839p reported a year earlier.
The company's shares at December 31 were trading at 1,910p, representing a 4.9% premium to NAV.
The stock was trading 0.4% lower on Tuesday at 2,046.52p a share.
RIT Capital's NAV total return was positive 0.8%. In comparison, the MSCI All Country World Index returned negative 5.8%.
"We were able to deliver this return in part by having reduced quoted equity exposure in advance of a fourth quarter which saw global equity indices fall by 13%," said Chair Jacob Rothschild.
The company said its private investment portfolio made positive returns, as did credit and bonds.
RIT Capital's investments in Asia, however, suffered, in particular China, where the stock market fell by 25% during the year. Nevertheless, the trust said it remains committed to the region, believing in its future prospects.
The company upped its total dividend for 2018 by 3.1% to 33.0p from 32.0p paid the year before.
"2018 was the most difficult and treacherous year for investors since 2008, with negative returns in all major asset classes," said Rothschild.
"In the current year stock markets have, so far, shown significant gains. We remain however cautious about future prospects for markets, concerned over the accumulation of downside risks," added Rothschild.
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RIT Capital Partners