Fund of the Week: Ruffer Investment Company

I was invested heavily with Ruffer before the market tanked and I now wish that I had left my money invested in their investment trust.

They are up to the present time fulfilling their claims of what they can do.

If only all money managers were as competent.

Well done Ruffer.

Ken Malloy

Ruffer IT - does what is says on the tin!

I am surprised (and secretly happy) Ruffer doesn't get more media coverage.

I have been with them since Oct 2008 and will be for many years to come...

Highly recommended, a shining example to the IT industry and a sleep at night company at a very reasonable TER.

I totally agree with Ken, Well done Ruffer!

I discovered the Ruffer Absolute Return fund recenly and was immediatetly struck by the asset allocation which agreed with my pessimistic outlook for the markets. My partner and I are both increasing holdings strongly via a monthly plan into our SIPP and ISA portfolios.

I've never heard of them but I certainly have now!

Please show us their 10 year stanardised record and not a flash in the pan.

Also how much we are to pay the managers for the favour they are doing us

Even the funds themselves are being obliged to tell us that past performance is not an indictor of future performnce. So, what makes you believe they are wrong and you know better, Mr Taylor?

It's quite small at the moment so should be relatively easy to manage.

I hope this article does not alert the rest of the investing public so forcing up the price artificially or for Ruffer to release new shares to mop up the demand but elarging the trust in the process.

Big is nit always best.

Hope people realise that "nit" should be "not".

Thanks for your comments, a couple need answering.

Franco said:

"Please show us their 10 year stanardised record and not a flash in the pan.

Also how much we are to pay the managers for the favour they are doing us"

and Anon said:

"Even the funds themselves are being obliged to tell us that past performance is not an indictor of future performnce.

So, what makes you believe they are wrong and you know better, Mr Taylor?"

These are the questions you need to be asking yourself when making an investment. How has it performed over the long-run? How much does it cost? Will it always do this, i.e. can I trust that what happened in the past will happen again?

Firstly, I would always be wary of anyone who shows me a very short-term picture over how an investment has performed, and expect me to believe that's how it will perform in perpetuity. I could show you a case for investment in almost anything based on that. This trust has consistently delivered, not only in the 18 month snapshot of the credit crises (Oct’07 – Mar’09), since its launch in 2004 it has risen roughly 110%, compared with the FTSE All Share return of 43% and cash in the bank (theoretically) would have netted you 28.14%. But there is always that caveat of past performance, not being indicative of future performance and that is no different here.

What makes me confident enough to recommend Ruffer, and invest my own money, is their approach to wealth preservation, they are extremely prudent. They aren't looking to make a fast buck. Their roots lie in protecting the fortunes of some of the lands wealthiest individuals, most of whom have already made their buck and now want to ensure it’s there for them and theirs when required. They are not afraid to take out large defensive positions that aren’t generating a large return, greed is the downfall of many and they are more than willing to take the view that markets are looking a toppy. They are so paranoid about your wealth and the wealth of their clients, that they unlikely to make a call that will expose you to undue risk.

I’m not expecting them to make a further 26% if markets turn for the worse again. But they’ve made shrewd calls in the latest round of volatility, investing in index linked bonds and gold to protect against the threat of inflation and they are willing to bet against the market (more importantly I’m not afraid for them to do so, they have the expertise). Much of the fund and pensions industry has had to re-think it's approach to investment in the wake of the credit crises, they are becoming more prudent. Whey pension funds didn’t in the first case is still a mystery to me. In short - they are becoming more like Ruffer.

My opinion though hasn’t changed, if you’d have asked me before the crises who I would have put my money with if I was uncertain about markets, it would be the same answer….and I’m not paid to say that. Finally on the subject of costs, there is a 1% annual management charge and no performance fees. Performance fees encourage greed and are in my view not suited to an absolute return style investment.