(Jack Burns) RIT Capital Partners fund issued its 2016 year-end report in late February. While the company was pleased to report a net profit of 12.1 percent and total shareholder returns hold at 14.2 percent, the company, and its chairman Lord Jacob Rothschild, seem preoccupied with risks associated with political and economic instability.
by Jack Burns, March 10th, 2017
Rothschild announced that while the funds’ assets are at an all-time high, the announcement comes, “Against a background of daunting uncertainty and political turmoil.” Going further, he stated a more ominous warning. “At this time of upheaval and uncertainty, our investment portfolio will continue to be well diversified,” he wrote comforting his shareholders their fund’s portfolio would be as protected as possible from any coming downturns in the market.
However comforting the report may be for individual investors, Rothschild’s final comments loom large over the mostly positive economic report. He wrote, “There could well be a period ahead of us when the avoidance of risk is as high a priority as the pursuit of gain.” The investment banker’s chosen word of “period” seems to indicate a coming downturn in profitability, even though for the past five years the fund has realized a profit of more than 1 billion Euros.
According to the report, Rothschild and his very powerful family have a vested interest in preserving their assets. “RIT Capital Partners plc is an investment company listed on the London Stock Exchange. Its net assets have grown from £280 million on listing in 1988 to over £2.7 billion today. RIT is chaired by Lord Rothschild, whose family interests retain a significant holding,” the issue reveals. If the fund, whose value is at an
If the fund, whose value is at an all-time high, suddenly declines, falling with it will be a large portion of wealth the Rothschild family enjoys. Although, any such declines would hardly come as a surprise to the Rothschild family who reportedly controls much of the world’s wealth and has a hand in nearly all of the world’s banking institutions, including the Federal Reserve, as some have stated…