Lord Rothschild casts dim view on bull market

 
Michael Bow
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LORD Rothschild, scion of banking’s most famous dynasty, yesterday said investors should not rely on the “punchbowl” of cheap central bank money to deliver investment returns.

The old school financier, aged 78, said that despite a strong 2013 his fund, RIT Capital Partners, had seen a 0.9 per cent decline in net asset values in January against a broader market fall of three to four per cent.

This compared to a bull run last year, which saw US equity markets rise 30 per cent and the FTSE 100 up 14 per cent. Rothschild’s fund climbed 18.6 per cent in 2013.

“With the world recovery still fragile and reliant to a large extent on policy support, it is not hard to envisage markets having to deal with such shocks in the coming year and indeed they were felt during January,” he warned. “We cannot rely on the upward trajectory of markets to deliver performance.”

RIT said the value of its fund rose by £299m to £2.15bn.