At the heart of our approach is a relentless determination to deliver long-term capital growth, while preserving shareholders’ capital.
In pursuit of this objective, we aim for meaningful participation in market upturns whilst aiming for reasonable capital protection on the downside. Over time, this has meant that RIT outperformed markets, with less volatility. The outcome of this approach has been notable – a shareholder who invested in RIT at inception will have seen a share price total return of 12.4% per annum.
Our decision making begins with a considered top down macro-economic view. At times of heightened risk, we tend to keep our exposure to quoted equity markets at moderate levels. We are discerning over the investments that make it into our portfolio – each investment is the subject of rigorous analysis and must bring something genuinely unique to be included.
Strong macro-economic views also allow us to deploy active currency strategies and appropriate overlays. We will always take active currency positions where we believe there is an opportunity to enhance returns for our shareholders. We do this whilst remaining ever mindful that sterling is our base currency.
So, while we retain at our core an equity bias, we nonetheless have the freedom to invest the portfolio across multiple asset classes, geographies, industries and currencies. This has been the basis of our style over many years - combining thematic investing with individual securities, and private investments with public stocks. The long-term success of RIT has been drawn from a distinctive blend of individual stocks, private investments, equity funds and currency positioning, all overlaid with macro exposure management.