RIT Capital outlines plans to tackle discount
The board hopes a tender offer will help moderate the discount.
8th July 2026 11:08
by Dave Baxter from interactive investor
RIT Capital Partners leases 18th-century Spencer House in Westminster, London.
Investment trust RIT Capital Partners Ord (LSE:RCP) has proposed a tender offer for up to £300 million of its shares as part of a series of measures to tackle its wide share price discount.
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The tender offer, if approved by shareholders, would let investors sell their shares at a 15% discount to net asset value (NAV). For context, the shares currently trade on a discount of around 25%.
“The pricing reflects the board’s objective of balancing the interests of all shareholders,” the board said.
“It provides participating shareholders with liquidity at a meaningful premium to the prevailing market price while delivering accretion to NAV per share for those shareholders who remain invested.”
The tender offer would be funded through a combination of portfolio sales and “existing liquidity and balance sheet resources”.
The board said it was also considering changing the trust’s dividend policy, including the consideration of a potential increased payout from 2027, with any changes to be outlined alongside its next set of annual results. The shares currently yield around 2%. The board also wants to maintain an active share buyback programme.
RIT looks to “grow your wealth meaningfully over time, through a diversified and resilient global portfolio” and invests in listed equities, which account for 45% of the portfolio, as well as private investments (33%) and so-called uncorrelated strategies (21%) such as absolute return funds.
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The trust took a big hit in the growth sell-off of 2022, with shareholders losing around 21.5% and then a further 9.6% in 2023.
A new chief executive, Maggie Fanari, took the helm at the trust’s investment manager in 2024. Performance has at points looked more promising as of late, with the shares returning almost 17% in 2025. However, they are flat so far in the first half of 2026, a period when most markets have risen.
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