YOUR PORTFOLIO Defensive trusts
Ron Tabbouche
Chief investment officer , RIT Capital Partners
While Ruffer Investment Company was launched in 2004 and Spiller ’ s track record goes back 40 years , RIT Capital Partners gives you the chance to invest alongside the wealth of the Rothschild family , whose banking business was established in the 1700s . The trust was established as Rothschild Investment Trust in 1971 and was later renamed RIT . It listed in 1988 . A statement from the trust says it has “ a relentless determination to deliver long-term capital growth , while preserving shareholders ’ capital ”. To do this it aims to participate in market upturns while aiming for reasonable capital protection on the downside . The managers use a “ six-cylinder ” approach : top-down themes ; investing alongside exceptional managers ; single stocks ; active currency management ; absolute return and credit ; and private investments . Analysts at Numis say these
Ron Tabbouche
cylinders are unlikely to deliver strong returns at the same time . However , they should allow the trust to make positive gains in a range of conditions . “ RIT Capital Partners remains our core long-term recommendation in its sector ,” they say , adding that the trust ’ s current discount of 9 % represents an attractive buying opportunity . It has made 619.3 % over the past 20 years and , unlike the other two trusts mentioned in this article , has had no problem beating the FTSE All Share over the past decade either , making 164 % over this time compared with 117 % from the index .
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