RIT Capital Partners half-year results 2026: record NAV, but discount widens to 27.5%

RIT Capital Partners PLC delivered a strong investment performance during the first half of 2026, with positive returns across all three parts of its portfolio and net asset value reaching a record high.

The awkward bit is that shareholders did not receive anything close to the full benefit. NAV per share total return was 9.0%, but share price total return was just 2.0% as the discount widened to 27.5%.

That gap between portfolio performance and shareholder experience is the key issue in these results.

RIT Capital Partners' key half-year figures

Metric	30 June 2026	31 December 2025	Change
NAV per share	3,159p	2,921p	8.1%
Share price	2,290p	2,270p	0.9%
Discount to NAV	27.5%	22.3%	5.2 percentage points wider
Net assets	£4.29 billion	£4.04 billion	6.2%
Gearing	5.5%	3.2%	2.3 percentage points higher
NAV total return	9.0%	-	-
Share price total return	2.0%	-	-
Total 2026 dividend	45.0p	43.0p	4.7%

NAV, or net asset value, represents the value of the trust's assets after liabilities. A discount arises when the shares trade below NAV per share.

At the period end, investors could buy shares for 2,290p despite the underlying NAV being 3,159p. This suggests that the market was applying a substantial deduction for factors including portfolio complexity, private asset valuations and the trust's ability to turn NAV growth into shareholder returns.

All three investment pillars produced positive returns

The strongest feature of the results was the breadth of portfolio performance.

Investment pillar	H1 return	Contribution to NAV	Percentage of NAV
Quoted Equities	7.8%	3.3%	47.8%
Private Investments	9.1%	3.3%	33.4%
Uncorrelated Strategies	5.6%	1.5%	20.2%

Private Investments led with a 9.1% return. RIT highlighted the SpaceX initial public offering, valuation uplifts across direct investments and a 5.9% return from its private fund holdings.

The trust said more than 43% of its private portfolio had been realised over the previous two years, generating £569 million. Direct private investments were realised at an aggregate 70% above their previous carrying values.

That is encouraging because private investments can attract scepticism when valuations are based on estimates rather than regularly traded market prices. Realisations above carrying value provide some evidence that previous valuations were not overly optimistic, although they cannot remove valuation risk across the remaining portfolio.

RIT also increased its exposure to Anthropic and Databricks and made new direct investments in Cognition and Stripe. Its private investment portfolio represented 33.4% of NAV at the end of June.

SpaceX helped both private and quoted investments

SpaceX was transferred from Private Investments to Quoted Equities when it completed its IPO.

Gains made before the transfer remained within the private pillar, while subsequent share price movements were recorded under Quoted Equities. At the IPO point, RIT reported an unrealised gain of £110 million on SpaceX, equivalent to four times its invested capital.

Quoted Equities returned 7.8%, supported by global, emerging markets and biotech managers. SpaceX's post-IPO share price increase also contributed, while quality stocks and commodity-related equities delivered mixed results.

The quoted portfolio still trailed the trust's ACWI benchmark, which returned 12.5% during the half. Management attributed part of this to its geographic diversification away from the narrow US technology-led rally.

Uncorrelated strategies provided useful protection

Uncorrelated Strategies returned 5.6%, contributing 1.5% to NAV.

These strategies are intended to generate returns that are less dependent on mainstream equity markets. RIT said its absolute return and credit managers helped protect the portfolio during first-quarter volatility.

The trust reported a 1.6% return in the first quarter when global equities fell by 2.0%. It also realised gains from an oil position established before the Middle Eastern conflict and reduced its gold exposure after a strong start to the year.

Currency movements added 0.8% to NAV performance as the US dollar strengthened against sterling.

Buybacks helped NAV, but have not closed the discount

RIT spent £60 million buying approximately 2.7 million shares during the first half, equivalent to 1.9% of issued share capital. Because the shares were purchased below NAV, management estimated that buybacks added 0.5% to NAV total return.

Since the start of 2023, more than 13% of RIT's share capital has been repurchased for £392 million, adding an estimated 3.3% to NAV total return.

This is sensible capital allocation when shares trade at a large discount. However, the discount still widened from 22.3% to 27.5% during the half. Buybacks have therefore increased NAV per share without yet producing a sustained improvement in the market rating.

The £300 million tender offer

After the reporting period, RIT completed a tender offer for £300 million of shares at a 15% discount to preliminary NAV.

The trust purchased and cancelled 11.2 million shares at £26.8515 each. Management estimated that the transaction added 1.3% to NAV per share for continuing shareholders.

Approximately 80% of shares were not submitted for tender. The board interpreted this as evidence of shareholder confidence and a long-term investor base. Another interpretation is simply that the tender price still represented a meaningful discount to underlying assets.

The tender formed part of a wider programme that includes continued buybacks and a review of the dividend policy. The board is considering a higher dividend from 2027, with an update expected alongside the annual results next March.

Dividend growth continues

The total dividend for 2026 is 45p per share, up 4.7% and representing the 13th consecutive year of dividend growth.

A first payment of 22.5p was made in April. The second 22.5p instalment is due on 30 October 2026 for shareholders on the register on 2 October.

Both dividends are being funded from accumulated capital profits. This matters because RIT reported a £4.4 million revenue loss during the half, despite generating a £337.9 million capital profit.

What investors should watch next

The investment performance was strong, diversified and ahead of RIT's CPI plus 3% hurdle of 2.8%. The 12-month NAV total return of 19.7% and share price total return of 20.3% also show improved momentum over a longer period.

However, the first-half share price return lagged both NAV and the wider equity benchmark. Gearing increased to 5.5%, while a substantial proportion of the portfolio remains exposed to private investments whose values require judgement.

The main test is now whether the tender offer, ongoing buybacks and dividend review can narrow the discount without restricting the trust's ability to pursue attractive investments.

RIT's portfolio did its job in the first half. The next challenge is ensuring that more of that performance reaches shareholders through the share price.

The full figures and disclosures are available in the original company announcement.