RIT Capital Partners have published their 2017 annual report. To download it, please click here. Always an interesting read, especially Lord Rothschild’s letter to shareholders. They tend to be fairly conservative investors and have a good track record in terms of protecting capital, so it’s useful to keep an eye on the asset allocation and positioning of the trust.

Some very brief excerpts / highlights below (paraphrased):

• Key risks in the medium-term include quantitative easing being phased out and rising interest rates, higher debt levels (indeed, higher than at the time of the 2008 financial crisis) and an increasingly uncertain geopolitical outlook.
• The trust’s net quoted equity exposure averaged around 44%, including significant investments in technology in the USA and Asia. Complemented by approximately 22% in private investments, 25% in absolute return and credit and 7% in real assets, including gold. The trust also employs some leverage through short-term revolving credit facilities and derivatives.
• In terms of the quoted equity portfolio, they have slowly reduced their overall allocation to the US, although they remain focused on sectors that will benefit from a late-cycle environment and an increase in interest rates, such as cyclicals and financials. They remain overweight on Europe, while Japan continues to be a core allocation.
• Currency holdings ended the year spread between the Sterling (47%), the US Dollar (30%) and the Euro (12%). They substantially reduced their exposure to the US Dollar over the course of the year, towards the Sterling and Euro. The remaining exposure (11%) is distributed across several Asian currencies.