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Fund Profile


Disclosure – Non-substantive Research

This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. With this commentary, Kepler Partners LLP does not intend to influence your investment firm's behaviour. 

RCP’s recent performance - for good and bad - has been driven by private investments…

RIT Capital Partners (LON:RCP) aims to generate long-term capital growth and protect shareholders’ capital. The managers invest in a broad range of asset classes, both directly and through third-party managers, which are expected to deliver returns in a range of different market conditions. As well as portfolio construction helping to reduce risk through diversification, the team can bolster risk management through various hedging strategies. It is this approach, and the underlying funds that RCP is exposed to, that makes RCP a very different beast from many other multi-asset funds.

Overall, RCP has tended to exhibit relatively defensive qualities. RCP provides a statistic that, since inception, the trust has participated in 74% of market upside, but only 41% of market declines. The last three years have been relatively uncharacteristic of RCP’s historical NAV returns. In 2020 and 2021, the trust outperformed during strong years for equity markets, but it also performed in line with the market during the challenging conditions of 2022. We understand that much of the outperformance was attributable to the private investments’ sleeve of the portfolio, but the retrenchment during 2022 has been more broadly-based. Given that the majority of private assets are still valued as at 30/09/2022, there is potential for the NAV to fall further.

The KID Reduction in Yield is 4.44%, including 3.3% due to historic performance fees. RCP announces NAVs monthly and the shares currently trade at a discount of c. 19% to the 31/12/2022 NAV, which is significantly wider than the historical average. As we note above, part of this discount may reflect an expectation that the NAV will fall when private asset valuations are updated to 31/12/2022.

Kepler View

We like to break the AIC Flexible Investment sector into subsectors, and consider RCP a ‘protective diversifier’, alongside Capital Gearing, Ruffer and Personal Assets. That said, compared to this group, it has a much higher equity exposure and does not have an absolute return mandate.

RCP has a historical tendency to underperform rising markets, but perform well in relative terms in falling markets. The period since the start of 2020 has been uncharacteristic, and RCP has been more volatile and had a higher beta than has been the case historically. We do not think this represents a significant lasting change to what RCP offers, but it does serve to highlight that risk exposure in the trust is much higher than that of the other three protective diversifiers.

In our view, 2022’s retrenchment has to be seen in the context of the previous two years, where private investments added approximately 26% to total NAV. It is this same exposure that has contributed to a weaker performance by RCP than one might have expected in 2022. That said, with most private fund holdings still being marked at 30/09/2022 valuations, there is potential for the NAV to fall further, or potentially rise, as valuations in this part of the portfolio catch up. Going forward, RCP offers a highly-differentiated multi-asset offering, which will complement many portfolios.


  • Highly-diversified portfolio, offering access to a full range of asset classes and many soft-closed or inaccessible managers
  • Long-term performance track record, which has seen the trust protecting capital well in falling markets and delivering strong cumulative returns
  • Unique approach, with very few comparators in either closed or open-ended fund worlds


  • Monthly NAV announcements mean it is hard to ascertain what the current discount (or premium) really is
  • Higher costs than a typical fund, but – then again – this is not a typical fund
  • Opaque portfolio may not give granularity of underlying exposures that some investors may want
Continue to Portfolio
2024 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
14 Sep 2023 Risk on, risk off
Capital preservation trusts are maintaining historically low equity levels, despite the rally seen so far in 2023…
01 Aug 2023 Results analysis: RIT Capital Partners
RCP’s interims highlight the inherent defensiveness within the portfolio…
22 Mar 2023 Fund Analysis
RCP’s recent performance - for good and bad - has been driven by private investments…
19 Oct 2022 Gimme shelter
Our analysts examine safe havens and defensive strategies as we endure the market's 19th Nervous Breakdown...
06 Jul 2022 A game of two halves
In the second article of our series on the AIC Flexible Investment sector we see how performance has stacked up during two years when markets were poles apart...
25 Mar 2022 Fund Analysis
RCP continues to deliver good risk adjusted returns…
21 Jul 2021 Every which way but loose
We break down the AIC Flexible sector into more useful segments…
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer a sophisticated, cost effective solution for managing family wealth...
30 Mar 2021 Fund Analysis
RCP continues to deliver on its aims of long-term capital growth while preserving shareholders’ capital...
19 May 2020 Shuffling back towards the door?
Equity markets have rebounded strongly… should you be de-risking your equity exposure?
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
01 Apr 2020 Mind the gap
Discounts have yawned across trusts investing in private companies, but appearances can be deceptive and as COVID-19 unfolds it pays to take care…
30 Jan 2020 Is it time to run away?
With a sense of complacency in the air, our analysts debate the best ways to shore up your portfolio's defenses...
19 Jun 2019 Fund Analysis
Aiming to deliver long-term capital growth, while preserving shareholders’ capital...
30 Jan 2019 The Growth Portfolio
Our ten investment trust picks for long-term capital growth...
25 Jul 2018 The Endurance Growth Portfolio
The purpose of the Endurance Growth Portfolio is to generate long-term capital growth with a bias towards quality and defensive characteristics...
27 Jun 2018 A winning combination
New research from Cass Business school helps explain why closed-ended funds have outperformed their open-ended peers in the major equity sectors since 2000...
19 Apr 2018 Fund Analysis
A highly diversified portfolio of public and private investments, offering access to a full range of asset classes and many soft-closed or otherwise inaccessible managers
28 Feb 2018 Gimme shelter
As the bear market for bonds and corresponding volatility in equities escalates we examine trusts that offer excellent capital protection..
24 May 2017 Hard knocks
Our long term growth model portfolio suffered a serious setback when the Brexit vote came through, but has lived up to its name since then...
24 May 2017 Fund Analysis
Highly differentiated from the majority of other trusts by active equity and currency exposure, with a completely benchmark agnostic approach
12 Jul 2016 Fund Analysis
12 Jul 2016 Riders on the storm
Multi-asset investment trusts for an environment where a global, active, currency-aware approach is essential...
12 Jul 2016 Taking the bull by the horns
We examine the boards which have done most to fight for their shareholders' interests in an unforgiving arena...
01 Dec 2015 Model Portfolio update: Empiric, Edinburgh and RIT Cap...
The latest insight into developments across our three model portfolios...
07 Sep 2015 RIT Cap stands out amid market chaos
RIT Capital, the most risk averse member of The Endurance Growth Portfolio, has eked out a positive return against a backdrop of plunging markets this summer
10 Jun 2015 The Endurance Growth Portfolio
Five investment trusts with outstanding long-term growth prospects
View all

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Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.