RIT Capital Partners H1 NAV up in 'volatile' market

7th Aug 2018 08:08

(Sharecast News) - Half year net asset value at RIT Capital Partners rose to 1,882p a share from 1,839p despite a "volatile six months for markets".The dividend was increased 3.1% to 16.5p a share for a total return on assets of 3.2%.RIT said it maintained a cautious approach, with a net quoted equity exposure averaging 47%."Many of the world's economies have enjoyed a broad-based acceleration not seen since the aftermath of the financial crisis of 2008, with as many as 120 countries seeing stronger growth last year," said chairman Lord Rothschild."However, we continue to believe that this is not an appropriate time to add to risk. Current stock market valuations remain high by historical standards, inflated by years of low interest rates and the policy of quantitative easing which is now coming to an end.""The cycle is in its 10thpositive year, the longest on record. We are now seeing some areas of weaker growth emerge; indeed the IMF has recently predicted some slowdown."Rothschild said the problems confronting the Eurozone were "of concern...given the potentially destructive levels of debt in a number of countries".He added that likelihood of trade wars had increased tension and the impact on equities had been "marked"."Problems are likely to continue in emerging markets, compounded by rising interest rates and the US Fed's monetary policy which has drained global dollar liquidity.""The resolution of these problems in this unpredictable era will surely be difficult. In 9/11 and in the 2008 financial crisis, the powers of the world worked together with a common approach. Co-operation today is proving much more difficult. This puts at risk the post-war economic and security order."