Lord Rothschild: 'Investors face a geopolitical situation as dangerous as any since WW2'
Chairman of the popular RIT Capital Partners investment trust warns savers of 'chaos, extremism and aggression' around the world, with 'horrendous' problems in Europe
|
|
|
|
|
|
Lord Rothschild has served on the board
of the Courtauld Institute of Art and chaired the National Gallery for
seven years during the 1980s Photo: Rex Features
Send money abroad with TransferWise
The smarter, cheaper way. Find out for yourself in a few clicks
Sponsored by Transferwise
2:32PM GMT 04 Mar 2015
169 Comments
Jacob Rothschild, the 78 year-old banker and chairman of RIT Capital Partners, has delivered savers in the £2.3bn trust a stark warning about global instability and the fragility of future returns.
He used his chairman's statement in the trust's 2014 annual report to
outline his concerns, saying that on top of a "difficult economic
background" investors face "a geopolitical situation perhaps as
dangerous as any we have faced since World War II".
He said this was the result of "chaos and extremism in the Middle East,
Russian aggression and expansion, and a weakened Europe threatened by
horrendous unemployment, in no small measure caused by a failure to
tackle structural reforms in many of the countries which form part of
the European Union".
This was a much gloomier assessment of the world than the picture painted in his statement a year ago.
Then, he listed the major dangers as the slowdown in China's growth and a possible over-valuation of shares.
Related Articles
-
-
Investment gurus going cheap: top trusts trading at discounts
24 Feb 2015 -
Ten investment trusts worth buying on a premium
28 Oct 2014 -
Fund tips for 2015: experts name their top picks
01 Jan 2015 -
Send money abroad with TransferWise
Sponsored by Transferwise
The trust was established in the Sixties with the aim of overseeing much of Jacob Rothschild's personal wealth.
>> How much money do managers put into their own funds?
He and his daughter Hannah, who is also on the trust's board, together own shares worth approximately £160m.
RIT is popular among private investors thanks to its excellent track record and its conservative approach to conserving capital (see graph, below or click here for more charts).
The "preservation of shareholders' capital remains our highest priority, taking precedence over tactical manoeuvres based on short term returns," Lord Rothschild has stressed.
Its 2014 results, just published, show assets up almost 10pc in the year. Increasing demand for its shares meant the share price rose even more significantly, up 13.3pc over the year.
Dividends for 2015, to be paid in April and October will be up 2pc.
The trust was listed on London's Stock Exchange in 1988 since when it has delivered an average annual return of 12pc.
Source: Numis
It invests in a range of assest including shares in quoted businesses, other funds and property. It owns the £33m leasehold of Spencer House, for example, an 18th century mansion in central London, which is let for functions.
• RIT Capital Partners investment trust is available on Telegraph Investor
>> How much money do managers put into their own funds?
He and his daughter Hannah, who is also on the trust's board, together own shares worth approximately £160m.
RIT is popular among private investors thanks to its excellent track record and its conservative approach to conserving capital (see graph, below or click here for more charts).
The "preservation of shareholders' capital remains our highest priority, taking precedence over tactical manoeuvres based on short term returns," Lord Rothschild has stressed.
Its 2014 results, just published, show assets up almost 10pc in the year. Increasing demand for its shares meant the share price rose even more significantly, up 13.3pc over the year.
Dividends for 2015, to be paid in April and October will be up 2pc.
The trust was listed on London's Stock Exchange in 1988 since when it has delivered an average annual return of 12pc.
Source: Numis
It invests in a range of assest including shares in quoted businesses, other funds and property. It owns the £33m leasehold of Spencer House, for example, an 18th century mansion in central London, which is let for functions.
• RIT Capital Partners investment trust is available on Telegraph Investor
