Questor: This trust will make good after worst slump in 36 years
Questor has reversed its “sell” recommendation on RIT Capital Partners following full-year results showing the Rothschild-backed investment trust pulling through the worst slump in its 36-year history. RIT’s 2023 annual report last month showed the £3.6bn global portfolio disappointed last year. A 3.2pc rise in assets trailed the 18.4pc return from the MSCI All Country World index, and the 7pc rise in the inflation benchmark it also uses. The report made for a sobering read for long-term shareholders. While the company’s underlying investment return of 3,343pc since listing in 1988 has smashed both benchmarks, which have gained 1,607pc and 637pc respectively, performance has dropped off alarmingly in the past decade. The value of RIT’s diverse investments has lagged behind the MSCI index over three, five and 10 years, and over three years has fallen well behind its annual target of delivering at least three percentage points more than the consumer price index. Shareholder returns have been far worse. From the top of the market in November 2021, the shares have slumped 36pc, largely over concern about the 45pc exposure to riskier unquoted assets held by 2022. At £17.86, the shares have fallen 19pc since we dropped our “buy” rating on...