Half-year Report

RNS Number : 5938Q
Ruffer Investment Company Limited
01 March 2021
 

 

RUFFER INVESTMENT COMPANY LIMITED

(a closed-ended investment company incorporated in Guernsey with registration number 41996)

LEI 21380068AHZKY7MKNO47

 

1 March 2021

HALF-YEARLY FINANCIAL REPORT

 

The Company has today, in accordance with DTR 6.3.5, released its Half-Yearly Financial Report for the six months ended 31 December 2020 and is attached.

http://www.rns-pdf.londonstockexchange.com/rns/5938Q_1-2021-2-26.pdf

The Half-Yearly Financial Report is also available via the Company's Investment Manager's website www.ruffer.co.uk .

Enquiries:

Praxis Fund Services Limited

Shona Darling

DDI: +44(0)1481 755528

Email: ric@praxisifm.com  

 

Key performance indicators

31 Dec 20 %

31 Dec 19 %

Share price total return over six months [1]

9.1

3.8

NAV total return per share over six months 1

6.4

3.3

Premium/(discount) of traded share price to NAV

0.9

(3.5)

Dividends per share over six months [2]

0.95p

0.90p

Annualised dividend yield [3]

0.7

0.8

Annualised NAV total return per share since launch 1

7.5

7.2

Ongoing charges ratio [4]

1.09

1.07

Financial highlights

 

31 Dec 20

 

30 Jun 20

Share price

263.00p

242.00p

NAV as calculated on an IFRS basis 5

£472,446,344

£444,112,381

NAV as reported to the LSE

£471,058,880

£444,389,282

Market capitalisation

£475,473,534

£437,507,967

Number of shares in issue

180,788,416

180,788,416

NAV per share as calculated on an IFRS basis[5]

261.33p

245.65p

NAV per share as reported to the LSE

260.56p

245.81p

 

 

Chairman's review

It is a privilege to have succeeded Ashe Windham as Chairman of the Company and we all wish him well for the future. Ashe joined the Board of Ruffer Investment Company Limited (RICL or 'the Company') in 2009 and became Chairman in 2011. During his tenure as Chairman the total return on the Company's shares was 37.5% and there was significant change, including a new Board, a new broker and a new administrator. Ashe has left the Company in a strong position, at a peak of market capitalisation and with a significantly lower ongoing charges ratio (OCR).

Performance

Lenin said about the year 1917: "there are decades where nothing happens and there are weeks where decades happen". The same was true of 2020. Many financial assets moved more in weeks than they had previously in decades and covid-19 created, or at least furthered, a revolution in a number of areas of commercial, environmental and social life.

RICL achieved its investment objectives in 2020 with colours flying. Over the six months under review the Company's published net asset value (NAV) rose from 245.81p to 260.56p, providing a net asset total return of 6.4%. The share price appreciated from 242p to 263p which, together with the dividends, gave a shareholder total return of 9.1% for the six months, helped by the movement from a small discount to a modest premium over the period.

The 2020 calendar year share price return of 17.8%, and NAV return of 13.5%, contributed to a compound annual NAV return of 7.5% since the Company listed in 2004, compared to 6.8% per annum from the FTSE All-Share Total Return Index.

Ruffer's investment strategy, since before the launch of your Company, has now produced a positive return in the three major bear markets since the firm began in 1994, making money for investors in 2000-2003, 2008 and in 2020. The compound annual return for the strategy is 8.9% after fees with a maximum drawdown of less than 10% compared to a maximum of 48% for the FTSE All-Share Index.

Risk

An American economist named Frank Knight wrote, back in 1921: "if you don't know for sure what will happen, but you know the odds, that's risk, and if you don't even know the odds, that's uncertainty." The future is nearly always uncertain and the past is no guide to the future. However, while history does not necessarily repeat itself, it does tend to rhyme and the results can be measured.

One measure of risk is deviation from an average historical return. More risk should equate to more return, but two portfolios can have identical annual arithmetic average returns over the same period with different wealth outcomes depending on risk. For instance, a portfolio which achieves a mean annual return of 10% over ten years with no volatility will accumulate one fifth more wealth than a portfolio with exactly the same average return but where the return deviates by 20% in two years out of three. For perspective, 20% was the volatility of UK equities over the span of the twentieth century.

The RICL return is not only achieved with the lowest risk of all the funds but with the highest percentage return for every extra percentage point of risk taken.

The Sharpe ratio quantifies the Company's performance relative to a risk-free investment, taking account of any additional risk. The Sortino ratio measures only the downside element of the volatility. The Sortino numbers show that the Company has generated nearly three times more excess return per unit of downside risk since its inception than an investment in the UK stock market.

 

To 31 December 2020

Sharpe ratio

Sortino ratio

Ruffer Investment Company since inception (July 2004)

0.89

1.99

FTSE All-Share Total Return Index since July 2004

0.69

FTSE All-Share index in GBP. Source: Factset. Ruffer Investment Company data is Total Return NAV. All data measured to 31 December 2020.

Investment objective

The Company is classified as part of the flexible investment sector, which has many different benchmarks, although many different funds in the sector have none. The Company has no index-related benchmark, but its principal objective is: 'to achieve a positive total annual return, after all expenses, of at least twice the Bank of England Bank Rate'. The aim is to create an 'all-weather' portfolio which combines growth and protective investments to provide consistent positive returns regardless of the performance of financial markets. In the words of Jonathan Ruffer, the approach is about trying not to be wrong, rather than attempting to be right.

Bank Rate is just one of the tools of monetary policy set by the Monetary Policy Committee of the Bank of England to maintain price stability and support the government's economic policy. Bank Rate determines the interest rate paid to commercial banks holding money with the Bank of England as part of their liquidity requirements. By influencing the rates which those banks charge for lending, Bank Rate affects economic activity and the valuation of assets. It is used as a tool to encourage growth, as now, and control inflation to preserve the value of money as in the 1970s.

Even during the gold standard days of the nineteenth century, Bank Rate ranged between 2% and 10%. The highest rate ever seen was 17% in 1979, when it was known as minimum lending rate. By the time RICL was launched in June 2004, the rate had fallen to 4.5%. Returning twice 4.5% while trying to avoid significant drawdowns was a testing target given the volatility of equities or equity-related securities and bonds in which the Company is predominantly invested.

Simple but not easy

Since February 2009, Bank Rate has been no higher than 1%, the lowest nominal rate since the Bank of England was founded in 1694 until falling to the current 0.1%. Twice bank rate as a target might seem simple but is not always easy. Cash maintains capital value, carries minimal risk; its return is highly predictable in the short term and it is accessible. In the long term, cash returns have been close to the inflation rate, in fact 1% above it over the twentieth century.

However, the valuation of the assets in which the Company invests is not just determined by the nominal rate of interest but the rate relative to inflation or deflation - the real rate. When measured against the Retail Price Index since 2009, Bank Rate has been negative in real terms in every single year, just as it was positive in every one of the previous ten years. This negative real rate both reduces the universe of return-enhancing safe-haven assets available to achieve the Company's investment objective and encourages taking risk.

Furthermore, it is not the rate but a change in rate, especially unanticipated change, which has the greatest impact on the valuations of the assets in which the Company invests and therefore on returns in the short term. Bank Rate is a blunt instrument of monetary policy. It has only a lagged impact on inflation and the real economy, but can have a dramatic effect on financial markets.

The present value of assets is also a function of future income discounted at rates of interest related to Bank Rate. Growth discounted at low rates of interest creates high present values of long duration assets such as long dated bonds and growth equities. These valuations can remain high and become higher if growth or low interest rates are sustained beyond expectation. And they become vulnerable to any sustained change in the direction or amount of earnings growth, of monetary or of fiscal policy.

Marginal changes in low rates can make valuations volatile, while the cost of protection against that volatility remains relatively high in a low return environment. It may be counter-intuitive, but a consistent positive return of twice Bank Rate has rarely been a more challenging target especially given the implied low level of downside risk. There will be times when the Company far exceeds its target but other times when standing still will be an achievement.

Share buy-backs

Although the Company has never yet used the permission of shareholders to buy back its own shares (the redemption in 2007 was technically a tender offer at NAV rather than a buy-back), it subscribes to the Association of Investment Companies (AIC) Corporate Governance Guide for Investment Companies (the AIC Code). This code, which is endorsed by the Financial Reporting Council, imposes a duty on the Board of Directors to monitor and take action to address discounts to NAV. The AIC Code explicitly references buy-backs as one such tool with which to do so.

In July 2020, the AIC published a paper in response to the Pensions & Investment Research Consultants Ltd (PIRC), a corporate governance and shareholder advisory group, on what PIRC views as the circularity of capital which they believe is not to the long-term advantage of shareholders. PIRC shows that a number of trading companies have issued capital and within weeks or even days sought authority to buy back shares and vice versa.

PIRC applies the same argument to investment companies. It maintains that a discount to NAV is largely a product of the management fee. PIRC's hypothesis is that the NAV of an investment company represents the present value of the market's expected future stream of income and gains or losses from its underlying investments, while the share price of that company represents the NAV less the present value of any future expected charges. The assumption is therefore that if there were no future charges then there would be no discount of share price to NAV.

The AIC paper recommends that PIRC distinguishes between investment companies and trading companies and suggests that buy-backs can be an appropriate mechanism to control discount volatility and deliver shareholder value.  

Empirical evidence

With the help of our broker, Investec, we have investigated the empirical evidence of the correlation between ongoing charges and the average discount to NAV of the entire investment company population. The statistic (R-squared) which indicates the extent to which one of those two variables could explain the other is not significant at less than 6%. This statistic implies that factors other than charges explain at least 94% of any correlation between investment company ongoing charges and share price discounts to NAV.

Further analysis showed that some investment companies have sustained a premium of share price to NAV for long periods of time despite costs of management. Some trusts with lower operating costs than others have had higher levels of discount. Discounts for the same company have varied significantly between time periods when the management charges have not. This was especially the case during market disruptions, such as in 2007/2008 and March 2020, when discounts increased substantially.

Apart from this empirical evidence, it is a mathematical fact that buying back shares at a significant discount and cancelling them increases NAV for the remaining shareholders, although at some point shrinking the company size would lead to a higher ongoing charge and less marketability in the shares. There is also evidence that buying shares into treasury and reissuing can help liquidity in the shares, which shareholders also value.

The conclusion from the empirical analysis is that PIRC's working hypothesis, that discounts are 'largely a product of the management fee', does not in fact work. Management fees may be one of a number of factors. Other factors might include both absolute and relative performance of the fund or underlying asset class; expectation of future returns, dividend yield, cover and sustainability; manager depth and resource; marketability of shares; discount control; and confidence in the Board. However, there appears to be no evidence to support the hypothesis that fees and charges are the main factor in explaining discounts of share price to NAV.

Your Directors sought shareholder permission at the annual general meeting (AGM) in December 2020, as they do each year, to repurchase up to 14.99% of the issued preference shares during the 12 months to the next AGM. Shareholders voted 99.96% in favour of the resolution. In the case of your Company, the Board is alerted by our broker to any discount of share-price to NAV greater than mid-single digits. At that point we might expect some investors to trade the discount, taking a view on it narrowing and compounding positive underlying performance. Others may arbitrage between the Company's shares and units in the equivalent Ruffer open-ended fund.

The Board assesses with the broker the market position in the shares: who are the sellers; what are their reasons; what are volumes which are moving the share price significantly relative to the average liquidity levels; where are and what constitutes potential buyers and at what price level. The Investment Manager is not appraised of this discussion because of potential conflict of interest should they choose to buy the Company's shares for their discretionary clients.

The Board makes its own independent judgement on whether it deems the discount to be a temporary aberration, offering the opportunity to add value to shareholders through buyback, or a longer-term signal for which action other than a share buy-back may be required.

Reporting to shareholders

The annual report will elaborate on Ruffer's environment, social and governance (ESG) policies which have been a focus of the Board's attention and are well documented on the Ruffer website. We are pleased to report continued good progress and many examples of Ruffer acting as a leader in this area. This view was endorsed by the latest Assessment Report from the UN-supported network of investors promoting sustainable investment known as Principles for Responsible Investment (PRI) where Ruffer scored A+ (the highest grading) for their overall ESG strategy and governance framework.

One of the revolutions which covid-19 has furthered is digital communication. It has been a feature of some companies, not least those resident in Guernsey, that AGMs have never been easy for shareholders to attend. For many during lock-down under covid-19 it has been impossible.

Covid-19 has shown that technology can mitigate communication issues, as already demonstrated by Ruffer webinars and Ruffer Radio. Your Board and the Investment Manager are considering how to open the AGM virtually later this year to all shareholders who have appropriate internet access. More on this in the annual report.

Earnings and dividends

Earnings for the half year were 0.93p per share on the revenue account and 15.69p per share on the capital account. The Company's investment strategy continues to focus on total return to achieve its objective. Income remains a by-product of this process, given the high level of investment in assets which themselves offer little or no income. Such net income as arises will be distributed, but capital will not be drawn on to maintain the dividend. However, the Company is carrying retained revenue earnings of approximately £2 million, which the Directors may use to supplement future dividends should they consider it appropriate to do so.

Déjà vu

The focus of government policy in 2021 will likely continue to be to avoid the economic and social deflationary abyss of the 1930s. Markets are clearly discounting this outcome but what policy follows, after the expected fiscal and vaccine-induced recovery, will be the issue for 2021 and beyond.

Whether one subscribes to classical economic thinking or to modern monetary theory (MMT) - which some believe to be neither modern, nor monetary, nor theory, but hypothesis - both have points in common. Both acknowledge that once fiscal policy absorbs unemployed resource with continued growth in money, then inflation becomes the most likely outcome, inducing a government policy response of higher taxation and rates of interest.

John Maynard Keynes wrote in 1923: "a change in the value of money, that is to say in the level of prices… has produced in the past, and is producing now, the vastest social consequences... which generally affect different classes unequally, transfers wealth from one to another, bestows affluence here and embarrassment there…". Plus ça change.

Political recognition of this inequality and its cause is only a matter of time. But until general economic recovery and the signs of inflation are well set, governments and central banks will likely be echoing the prayer of St Augustine: "Lord make me pure but not yet."

The Company's strategy recognises that we are moving into a new investment regime. Ruffer's success during 2020 in managing different and unexpected market scenarios is encouraging for 2021. Your Board is confident that the portfolio will continue to provide 'all-weather' portfolio diversification and protection of wealth.

Christopher Russell

26 February 2021

Investment Manager's report

Performance review

For the six months to 31 December 2020 the NAV return was 6.4% (2019: 3.4%). The share price return of 17.8% and the NAV return of 13.5% for the calendar year 2020 marks two consecutive years of good returns for shareholders (+23.0% in NAV performance over 2019 and 2020) following a lean period in the two years before that.

What most people will find surprising about 2020 is that through a severe global recession, most assets ended up making money. This is hard to reconcile with the lived experience of 2020. Despite the rise in asset prices, the portfolio objective of preserving shareholder capital was thoroughly tested as we experienced the broadest possible range of market and economic environments. We often describe the Ruffer investment approach as 'all-weather' and there was certainly a wide variety of investment weather to deal with.

There were three distinct phases of market behaviour, each of which required a different asset mix to navigate successfully.

Period

Environment

RIC TR NAV %

FTSE All-Share TR %

FTSE All World TR %

Q1

Covid crash

-0.7

-25.1

-20.0

Q2+Q3

Stimulus led reflation

+8.0

+7.0

+26.6

Q4

Vaccine recovery and rotation

+5.8

+12.6

+12.9

2020 FY

 

+13.5

-9.8

+14.4

Source: Ruffer LLP, Factset

To illustrate this another way the portfolio appreciated by 4.2% in March 2020 when equities fell 15.1% and also appreciated by 5.2% in November 2020 which was the best month for equities since 1987.

Portfolio attribution

Attribution for the year 2020 tells only part of the story. What was important was not just what you owned, but when you owned it.

In order to hold onto the major positive contributions from gold, illiquid strategies, US Treasury Inflation Protected Securities (TIPS) and option protection, we needed to add opportunistically and lock in gains at various points during the year. Similarly, while we lost money in equities over the year as a whole (too much cyclical exposure in Q1), timely additions in the middle of the year and a further rotation into cyclical stocks meant that this part of the portfolio performed strongly in the bounce in markets and vaccine announcement in November 2020.

Within the equity book the standout stock has continued to be Ocado, rising 79% in 2020, 13% since 30 June and 774% since purchase. Three other notable successes were Fujitsu (+45% in 2020, +82% since purchase), Sony (+39% in 2020 and +271% since purchase) and Weiss Korea (+59% in 2020 and +138% since purchase).

Having been a drag in the first half of 2020 our positions in cyclical and value stocks were justified in the second half of the year as they acted as an offset to long duration assets and covid-19 winners (gold and long dated index-linked bonds for us, technology and growth stock for many others). Stocks exposed to a 'v for vaccine' recovery have done well since purchase - notable contributions came from Cemex (+98%), Uber (+44%), Barratt Development (+42%) and Vinci (+42%). At the very end of the period under review the announcement of a post-Brexit trade deal benefited our position in domestic UK equities and the decision to add to this part of the portfolio in October 2020. The reaction was more muted than we expected, but as the covid-19 clouds start to clear we expect the discount on UK equities to narrow.

Portfolio changes

There was some profit taking in gold and trading in US TIPS as mentioned above and the equity weighting rose from c 30% to c 40%. As we reported in July, a portfolio of index-linked bonds, gold and cyclical/value stocks (which benefit from stimulated GDP growth) and a significant sprinkling of protection against market calamity looks to be the right mix for the current environment.

Although our cyclical/value stocks were strong immediately following the vaccine news, we must remember both the portfolio role they play and the longer-term context. These stocks are geared to improving economic prospects and rising interest rates - this is vital as the rest of the portfolio stands to benefit more from continued financial repression and poorer market and economic outcomes. Secondly, these types of stocks have underperformed growth and quality factors for a decade. If there is an extended rotation, which would rely upon improved economic growth, then the recent outperformance has much further to run.

One notable addition to the portfolio during November 2020 was bitcoin exposure. We gained our bitcoin exposure via the Ruffer Illiquid Multi Strategies Fund and two proxy equities in Microstrategy and Galaxy Digital Holdings. At the period end the combined exposure of these was just over 3%. In the short period since investing both stocks are up more than 100% and bitcoin is up 90%.

Our rationale has been well publicised but, briefly, we have a history of using unconventional protections in our portfolio. This is another example, a small allocation to an idiosyncratic asset class which we think brings something significantly different to the portfolio. Due to zero interest rates the investment world is desperate for new safe-havens and uncorrelated assets. We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialisation of bitcoin. Think of bitcoin's bad reputation as a risk premium - as we move through the process of normalisation, regulation, and institutionalisation, the compression of this premium can have a dramatic effect on the price. If we are wrong, bitcoin will return to the shadows and we will lose money - this explains why we have kept the position size small but meaningful.

Investment outlook

As we enter 2021 there is near consensus in financial markets on four things -

Covid-19 will be conquered by the vaccine

Central banks will keep printing money without limit

Governments will keep spending without limit

Valuations no longer matter because the winners and losers have been settled

But coming into 2020 there was near universal consensus that global growth would accelerate. The one thing that mattered in 2020, coronavirus, was on few people's radar. Most did not see it coming and markets were complacent to the risk. As Daniel Kahneman put it: "the correct lesson to learn from surprises is that the world is surprising."

Given the unique blow to the economy and the co-ordinated shock-and-awe global response, it seems fair to conclude that the distribution of possible outcomes from here is wider than it has ever been. This makes a genuinely all-weather portfolio even more important.

The economy

It now seems we are in a K-shaped recovery - that means winners and losers. The unique shape of the covid-19 crisis and accompanying recession has meant some industries have thrived whilst others have suffered. What does the K mean? In caricature, everyone now uses Zoom and Peloton and offices and gyms are forced to close. Big beats small. The digital economy beats everything. Covid-19 acted as the 'Great Accelerator' to a whole host of trends which were already in motion.

This applies to individuals as much as it does to companies. The rich have benefited from asset prices rising, access to cheap debt and more independence. Those less fortunate have faced job losses and managing precariously through a patchwork of government support.

The K is not OK because it leads to a hollowing out of the economy and, as we are observing, it will exacerbate inequality and cost far too many jobs. Despite the government schemes, the job losses dwarfed any historical comparison. Even after a significant recovery, US levels of unemployment are only just back to those levels seen at the trough of the global financial crisis.

It feels like we live in a world of two extremes - the real economy which has been severely wounded and a rose-tinted, utopian, liquidity-fuelled world in the financial economy.

Why does this matter? Because governments have a habit of bending to popular will and there are a lot of disenfranchised people as a result of covid-19 who are looking for someone/something to blame. Capitalism, big business, the rich - all seem to be probable targets who will have to 'pay their fair share'. Furthermore, because politicians can read the mood of voters too, this will ultimately lead to government intervention and antitrust. The first signs are showing with talk of student debt forgiveness, a $15 minimum wage in the US and a coming reckoning for Big Tech in the US.

The optimistic take on the current economic situation is, as governments have realised through necessity, that the frontiers of tolerable levels of government borrowing and spending are further out than previously thought. Those, including Ruffer, who have worried about the unsustainable debt dynamics are looking more wrong than ever. This is music to political and Keynesian ears and it is an invitation they won't need to be offered twice to get more active in 'investing in the economy'. Such a policy is entirely unsustainable if bond yields rise, hence the obsession by the authorities in keeping interest rates nailed to the floor.

We can layer on top of this unexpected debt headroom the possibility of significant pent-up demand. After the Spanish flu in 1918 came the roaring 20s. The combination of the First World War plus a pandemic meant that people had put their lives on pause. It is entirely possible that for many something similar has happened during covid-19 - delayed weddings, cancelled holidays, etc. Might the animal spirits post-vaccine in mid-2021 catch us all by surprise? If so it seems plausible that bond yields will indeed rise and there will be upward pressure on prices.

A new investment regime

The question all investors need to be asking themselves today is 'why do I own conventional bonds?'

Bonds have been the cornerstone safe haven asset for investor portfolios since the creation of modern portfolio theory in the 1950s. As an asset class they have done a fantastic job, delivering strong returns and crucially acting as a wonderful portfolio offset. This is because bonds have gone up at times of stress when riskier assets in portfolios have fallen. They have been a hedge, but one with significant positive carry - the holy grail! But from here - with yields as low as they are - it is hard to see why anyone would own them. What do they add to your portfolio?

Bond prices are not just at record highs. They now offer guaranteed negative returns before considering inflation. As Jim Grant famously observed: 'they have gone from risk free return, to return free risk.' This has not escaped the notice of investors, which is why they have taken on more credit risk in order to achieve required yields and branched into assets outside traditional fixed income markets. These bond proxies (think infrastructure, renewable energy projects, property, private credit, defensive equities) are now exposed to the same risks as conventional bonds.

nvestors are prepared to hold around $18tn worth of bonds knowing full well they will get back less than their original investment if held to maturity. Only 15% of the entire world bond market yields more than 2%.

At best, this is a bubble in pessimism. Are asset allocators so devoid of good ideas they will guarantee a small loss at the risk of anything worse happening? At worst, this is the tyranny of benchmarking writ large as 'investors' paint by numbers into assets guaranteeing losses.

But bonds are a mathematically bounded asset class - from here the 'bond math' is challenging. In the US the ten year bond yield would have to fall to -0.7% to offset a 10% fall in the S&P 500 in a typical 60/40 portfolio. This is possible, but not likely, and anything worse than a 10% fall in the equity market would require even more sharply negative yields.

It is worth drawing on a recent example - had you held 10 year German bunds from 2019 through the covid-19 crash you would have lost money. That is to say that through the sharpest, deepest recession in recorded history you lost money in one of the ultimate safe-haven conventional government bonds.

For these reasons we do not hold conventional government bonds in the Company. Inflation-linked bonds offer a different opportunity as explained below.

The big question - how do we pay for all this?

Regardless of how the economy recovers from the pandemic, we can say for sure that western societies will come out of this carrying significantly more debt than before. The need to address this issue has become a necessity. Step 1 is to ensure that borrowing costs are kept as low as possible. Step 2 is to look at ways to start deleveraging. We all know that austerity is politically toxic and ineffective. Growing our way out of this bind is vanishingly unlikely given that it hasn't worked for at least the last half a century. While default will always be the nuclear option to be avoided at all costs, history does show us that a default via the back door of inflation is both the most effective 'solution' and the most politically palatable. In the current situation this option also has the added political benefit of appeasing the social pressure to address wealth inequality. Financial repression (interest rates below the rate of inflation) rewards the have-nots of society at the expense of the haves. Debt is inflated away and asset values typically fall.

Conventional bonds offer no protection in this scenario and equities tend to perform poorly when inflation starts to pick up materially. Our belief is that a combination of index-linked bonds, gold and some digital currency will offer protection.

Summary

We are moving into a new investment regime in the post-covid-19 world. As ever in a regime change, there will be individual winners and losers, but perhaps more importantly the investment template from the previous regime is unlikely to work (aka driving with the rear view mirror). Our key takeaways are as follows-

Covid-19 as the Great Accelerator - many existing trends have been amplified. Of these the greatest threat to investors is the necessity of financial repression to pay for past debts.

The negative bond/equity correlation trade may be over - conventional portfolios are riskier than they appear through back-testing scenarios.

Expect the unexpected - a genuinely all-weather portfolio is going to be essential.

Beware the duration trade - many different assets have benefited from falling bond yields. A mix of cyclical equities and interest rate options gives you a genuine diversifier.

Faced with these challenges our job is to construct a portfolio for the Company which will protect and grow our investors' capital in a wide variety of market scenarios. Constructing a genuinely diversified portfolio has never been more challenging, but the results from this year, where we have experienced the full spectrum of market scenarios, is encouraging. On the protective side we have exposure to anti-assets like credit default swaps, index-linked bonds, gold, bitcoin or expressions of volatility. These are assets which, in isolation, may make traditional investors uncomfortable, but through the prism of the whole portfolio can be true diversifiers. On the growth side, if policy makers and vaccine producers are successful in facilitating a re-opening and nominal GDP growth then cyclical equities, those geared into the economic recovery, will be the place to be. We saw the first hint of this trend in November.

Ruffer AIFM Limited

26 February 2021

 

Top ten holdings

 

Investments

 

Currency

 

Holding at
31 Dec 20

 

Fair value £

 

% of total
net assets

Ruffer Illiquid Multi Strategies Fund 2015†

GBP

52,961,000

37,071,905

7.85

US Treasury inflation indexed bond 1.75%15/01/2028

USD

22,000,000

24,534,858

5.19

UK index-linked gilt 0.125% 22/03/2068

GBP

6,800,000

23,526,064

4.98

LF Ruffer Gold Fund*

GBP

6,714,906

21,722,721

4.60

UK index-linked gilt 0.375% 22/03/2062

GBP

6,050,000

20,117,300

4.26

Ruffer UK Mid & Smaller Companies

GBP

71,400

18,198,455

3.85

UK index-linked gilt 1.875% 22/11/2022

GBP

9,000,000

14,100,384

2.98

US Treasury inflation indexed bond 0.875%15/01/2029

USD

15,000,000

13,296,606

2.81

US Treasury inflation indexed bond 0.25%15/02/2050

USD

14,862,400

13,113,808

2.78

Lloyds Banking Group

GBP

31,776,800

11,579,466

2.45

* LF Ruffer Gold Fund is classed as a related party because its investment manager, Ruffer LLP, is the parent company of the Company's Investment Manager.

† Ruffer Illiquid Multi Strategies Fund 2015 Ltd is classed as a related party as it shares the same Investment Manager as the Company.

 

Statement of principal risks and uncertainties

The Board is responsible for the Company's system of internal controls and for reviewing its effectiveness. The Board, through its Audit and Risk Committee, has carried out a robust assessment of the principal risks and uncertainties facing the Company by using a comprehensive risk matrix as the basis for analysing the Company's system of internal controls while monitoring the investment limits and restrictions set out in the Company's investment objective and policy.

The principal risks assessed by the Board relating to the Company were disclosed in the Annual Financial Report for the year ended 30 June 2020. The principal risks disclosed include investment risk, operational risk, accounting, legal and regulatory risk and financial risks. A detailed explanation of these can be found within the Annual Financial Report. The Board and Investment Manager do not consider these risks to have materially changed during the six months ended 31 December 2020, and are not expected to change in the remaining six months of the financial year.

Going concern

The Directors believe that, having considered the Company's investment objective (see Business Model and Strategy within the Annual Financial Report), financial risk management and associated risks (see note 19 to the Financial Statements within the Annual Financial Report) and in view of the liquidity of investments (assuming, as the Board does, that market liquidity continues), the income deriving from those investments and its holdings in cash and cash equivalents, the Company has adequate financial resources and suitable management arrangements in place to continue as a going concern for at least 12 months from the date of approval of these Interim Financial Statements. The Directors also note that overall, due to the nature of the Company's portfolio, which comprises both equities and other more defensive assets, it has not been materially adversely affected in terms of value or cashflows by the effects of the covid-19 pandemic.

Responsibility statement

Responsibility statement of the Directors in respect of the half-yearly financial report

We confirm that to the best of our knowledge

the half-yearly financial report and Unaudited Condensed Interim Financial Statements have been prepared in accordance with International Accounting Standards (IAS) 34, Interim Financial Reporting as adopted by the European Union and

the half-yearly financial report and Unaudited Condensed Interim Financial Statements (including the Chairman's Statement and the Investment Manager's Report) meet the requirements of an interim management report and include a fair review of the information required by

DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of principal risks and uncertainties for the remaining six months of the year and

DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period and any changes in the related party transactions described in the last Annual Financial Report that could do so.

On behalf of the Board

David Staples, Director

26 February 2021

 

Independent review report to the shareholders of Ruffer Investment Company Limited

 

We have been engaged by Ruffer Investment Company Limited ('the Company') to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2020 which comprises the condensed statement of comprehensive income, condensed statement of financial position, the condensed statement of changes in equity and the condensed statement of cash flows and related notes 1 to 13. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2020 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Use of our report

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

 

Deloitte LLP

St Peter Port

Guernsey

26 February 2021

 

Condensed statement of financial position (unaudited)

as at 31 December 2020

 

 

31 Dec 2020 £

30 Jun 2020 £

 

Notes

(unaudited)

(audited)

Assets

 

 

 

Non-current assets

 

 

 

Investments at fair value through profit or loss

10,11

432,272,347

400,997,042

Current assets

 

 

 

Cash and cash equivalents

 

36,981,180

42,667,336

Trade and other receivables

 

471,968

8,877,207

Derivative financial assets

11

4,036,172

-

Total current assets

 

41,489,320

51,544,543

Total assets

 

473,761,667

452,541,585

Liabilities

 

 

 

Current liabilities

 

 

 

Trade and other payables

 

493,710

4,887,485

Derivative financial liabilities

11

821,613

3,541,719

Total liabilities

 

1,315,323

8,429,204

Net assets

 

472,446,344

444,112,381

Equity

 

 

 

Capital and reserves attributable to the Company's shareholders

 

 

 

Share capital

4

186,459,986

186,459,986

Capital reserve

 

187,219,226

158,853,795

Retained revenue reserve

 

3,717,573

3,749,041

Other reserves

 

95,049,559

95,049,559

Total equity

 

472,446,344

444,112,381

Net assets attributable to holders of redeemable
participating preference shares (per share)

 

12

 

261.33p

 

245.65p

 

The Unaudited Condensed Interim Financial Statements were approved on 26 February 2021 and signed on behalf of the Board of Directors by

David Staples, Director

The notes form an integral part of these Unaudited Condensed Interim Financial Statements

Condensed statement of comprehensive income (unaudited)

for the period ended 31 December 2020

 

 

 

 

Notes

 

 

Revenue £

Capital £

1 Jul 20to

31 Dec 20

total £

1 Jul 19to

31 Dec19

total £

Fixed interest income

 

548,004

-

548,004

681,489

Dividend income

 

1,592,879

-

1,592,879

2,093,889

Net changes in fair value of financial assets at fair value through profit or loss

5,10

-

18,983,644

18,983,644

9,065,572

Other gains

6

-

11,543,891

11,543,891

4,236,668

Total income

 

2,140,883

30,257,535

32,668,418

16,077,618

Management fees

8

-

(2,162,104)

(2,162,104)

(1,917,784)

Expenses

7

(310,557)

-

(310,557)

(328,847)

Total expenses

 

(310,557)

(2,162,104)

(2,472,661)

(2,246,631)

Profit for the period before tax

 

1,830,326

28,365,431

30,195,757

13,830,987

Withholding tax

 

(144,304)

-

(144,304)

(250,171)

Profit for the period after tax

 

1,686,022

28,365,431

30,051,453

13,580,816

Total comprehensive income

for the period

 

1,686,022

28,365,431

30,051,453

13,580,816

Basic and diluted earnings per share*

 

0.93p

15.69p

16.62p

7.51p

 

The revenue and capital return columns are prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations.

 

* Basic and diluted earnings per share are calculated by dividing the profit after taxation by the weighted average number of redeemable participating preference shares in issue during the period. The weighted average number of shares for the period was 180,788,416 (31 Dec 2019: 180,788,416). As there are no items which would cause a dilution to occur, the basic and diluted earnings per share are the same.

 

 

The notes form an integral part of these Unaudited Condensed Interim Financial Statements.

Condensed statement of changes in equity (unaudited)

for the period ended 31 December 2020

 

 

Notes

Share capital £

Capital
reserve £

*Retained revenue
reserve £

*Other reserves £

Total 1 Jul 20to 31 Dec 20£

Balance at 30 June 2020

 

186,459,986

158,853,795

3,749,041

95,049,559

444,112,381

Total comprehensive income for the period

 

-

28,365,431

1,686,022

-

30,051,453

Transactions with Shareholders

 

 

 

 

 

 

Distribution for the period

3

-

-

(1,717,490)

-

(1,717,490)

Balance at 31 December 2020

 

186,459,986

187,219,226

3,717,573

95,049,559

472,446,344

 

 

 

 

 

 

 

 

Notes

Share capital £

Capital
reserve £

Retained revenue
reserve* £

Other reserves* £

Total 1 Jul 19to 31 Dec 19 £

Balance at 30 June 2019

 

186,459,986

121,407,708

3,357,744

95,049,559

406,274,997

Total comprehensive loss for the period

 

-

13,580,816

 

-

13,580,816

Transactions with Shareholders

 

 

 

 

 

 

Distribution for the period

3

-

-

(1,627,096)

-

(1,627,096)

Balance at 31 December 2019

 

186,459,986

134,988,524

1,730,648

95,049,559

418,228,717

 

*Under the Companies (Guernsey) Law, 2008, the Company can distribute dividends from share capital and reserves, subject to satisfying a solvency test. However, the Company's dividend policy is that dividends will only be paid from accumulated revenue reserve. In order to provide clearer information relating to this reserve, the Company has separately identified it in these financial statements as a 'Retained revenue reserve' in the Statement of Financial Position and the Statement of Changes in Equity. 'Other reserves' represents amounts converted from share premium in 2004 and 2008.

 

The notes form an integral part of these Unaudited Condensed Interim Financial Statements.

Condensed statement of cash flows (unaudited)

for the period ended 31 December 2020

 

 

 

Notes

1 Jul 20to

31 Dec 20£

1 Jul 19to

31 Dec 19£

Cash flows from operating activities

 

 

 

Profit for the period after tax

 

30,051,453

13,580,816

Adjustments for

 

 

 

Net realised gains on investments

5,10

(16,343,029)

(20,351,226)

Movement in unrealised (gains)/losses on investments

5,10

(2,640,615)

11,285,654

Realised gains on forward foreign exchange contracts

6

(4,767,122)

(3,282,313)

Movement in unrealised gains on forward foreign exchange contracts

6

(6,756,278)

(1,077,612)

Foreign exchange (gains)/losses on cash and cash equivalents

 

(20,491)

123,257

Decrease/(increase) in trade and other receivables

 

331,842

(92,790)

Increase/(decrease) in trade and other payables

 

6,225

(332,040)

 

 

(138,015)

(146,254)

Net cash received on closure of forward foreign exchange contracts

 

4,767,122

3,282,313

Purchases of investments

 

(160,332,564)

(130,482,705)

Sales of investments

 

151,714,300

149,674,298

Net cash (used in)/generated from operating activities

 

(3,989,157)

22,327,652

Cash flows from financing activities

 

 

 

Dividend paid

3

(1,717,490)

(1,627,096)

Net cash used in financing activities

 

(1,717,490)

(1,627,096)

Net (decrease)/increase in cash and cash equivalents

 

(5,706,647)

20,700,556

Cash and cash equivalents at beginning of the period

 

42,667,336

19,375,840

Exchange gains/(losses) on cash and cash equivalents

 

20,491

(123,257)

Cash and cash equivalents at end of the period

 

36,981,180

39,953,139

 

The notes form an integral part of these Unaudited Condensed Interim Financial Statements.

Notes to the unaudited condensed interim financial statements

for the period ended 31 December 2020

 

The Company

The Company was incorporated with limited liability in Guernsey on 1 June 2004 as a company limited by shares and as an authorised closed-ended investment company. As an existing closed-ended fund the Company is deemed to be granted an authorised declaration in accordance with section 8 of the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended and rule 6.02 of the Authorised Closed-ended Investment Schemes Rules 2008. The Company is listed on the Main Market of the London Stock Exchange (LSE) and was admitted to the premium segment of the Official List of the UK Listing Authority on 20 December 2005.

 

Significant accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered to be material in relation to the Company's Unaudited Condensed Interim Financial Statements.

Basis of preparation

The Unaudited Condensed Interim Financial Statements for the period ended 31 December 2020 have been prepared using accounting policies consistent with IFRSs as adopted by the European Union and in accordance with IAS 34 as adopted by the European Union, and the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

They have been prepared on a going concern basis and under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss.

This half-yearly financial report, covering the period from 1 July 2020 to 31 December 2020, is not audited.

The Unaudited Condensed Interim Financial Statements do not include all the information and disclosures required in the Annual Financial Report and should be read in conjunction with the Annual Financial Report for the year ended 30 June 2020, which was prepared in accordance with IFRSs as adopted by the European Union. The Audit Report on those accounts was not qualified.

Significant judgements and estimates

In the financial period under review, there were no changes to the significant accounting judgements, estimates and assumptions from those applied in the Annual Financial Report for the year ended 30 June 2020.

Standards, amendments and interpretations effective during the period

The accounting policies adopted are consistent with those used in the Annual Financial Report for the year ended 30 June 2020. There were no new standards, interpretations or amendments to standards issued and effective for the period that materially impacted the Company.

 

Dividends to shareholders

Dividends, if any, are declared semi-annually, usually in September and March each year. The Company declared and paid the following dividends during the period.

 

1 Jul 20 to

31 Dec 20 £

1 Jul 19 to

31 Dec 19 £

Interim dividend of 0.95p (2019: 0.90p)

1,717,490

1,627,096

A second interim dividend of 0.95p per share in respect of the half year ended 31 December 2020 was declared on 26 February 2021. The dividend is payable on 27 March 2021 to shareholders on record at 13 March 2021.

 

Share capital

Authorised share capital

31 Dec 20 £

30 Jun 20 £

Unclassified shares of 0.01p each

Unlimited

Unlimited

75,000,000 C shares of 0.10p each

75,000

75,000

 

75,000

75,000

 

 

Number of shares

 

Share capital

Issued share capital

1 Jul 20to

31 Dec 20

1 Jul 19to

30 Jun 20

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

30 Jun 20 £

Redeemable Participating Preference Shares of 0.01p each

 

 

 

 

 

Balance at start of period/year

180,788,416

180,788,416

 

186,459,986

186,459,986

Balance as at end of period/year

180,788,416

180,788,416

 

186,459,986

186,459,986

Unclassified shares

Unclassified shares can be issued as nominal shares or redeemable participating preference shares. Nominal shares can only be issued at par to the Administrator. The Administrator is obliged to subscribe for nominal shares for cash at par when redeemable participating preference shares are redeemed to ensure that funds are available to redeem the nominal amount paid up on redeemable participating preference shares. The holder or holders of nominal shares shall have the right to receive notice of and to attend general meetings of the Company but shall not be entitled to vote thereat. Nominal shares shall carry no right to dividends. In a winding-up, holders of nominal shares shall be entitled to be repaid an amount equal to their nominal value out of the assets of the Company.

The holders of fully paid redeemable participating preference shares are entitled to one vote at all meetings of the relevant class of shareholders.

C shares

There were no C shares in issue at period end (30 June 2020: Nil).

 

Block listing and additional shares issued

At the start of the period, the Company had the ability to issue 6,321,341 redeemable participating shares under a block listing facility. No new redeemable participating preference shares were allotted and issued under the block listing facility during the period (30 June 2020: no new shares). New redeemable participating preference shares rank pari passu with the existing shares in issue.

As at 31 December 2020, the Company had the ability to issue a further 6,321,341 (30 June 2020: 6,321,341) redeemable participating preference shares under the block listing facility.

On 4 February 2021, the Company announced a tap issue of 500,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 270.0p per share.

On 10 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 275.5p per share.

On 11 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 275.5p per share.

On 18 February 2021, the Company announced a further tap issue of 500,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.5p per share.

On 24 February 2021, the Company announced a further tap issue of 750,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.25p per share.

On 25 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.25p per share.

Redeemable participating preference shares in issue

As at 31 December 2020, the Company had 180,788,416 (30 June 2020: 180,788,416) redeemable participating preference shares of 0.01 pence each in issue. Therefore, the total voting rights in the Company at 31 December 2020 were 180,788,416 (30 June 2020: 180,788,416).

Purchase of own shares by the Company

A special resolution was passed on 4 December 2020 which authorised the Company in accordance with the Companies (Guernsey) Law, 2008 to make purchases of its own shares as defined in that Ordinance of its Participating Shares of 0.01 pence each, provided that -

the maximum number of shares the Company can purchase is no more than 14.99% of the Company's issued share capital

ii  the minimum price (exclusive of expenses) which may be paid for a share is 0.01 pence, being the nominal value per share

iii  the maximum price (exclusive of expenses) which may be paid for the share is an amount equal to the higher of (i) 105% of the average of the middle market quotations for a share taken from the LSE Daily Official List for the 5 business days immediately preceding the day on which the Share is purchased and (ii) the price stipulated in Article 5(i) of the Buy-back and Stabilisation Regulation (No 2237 of 2003)

iv  purchases may only be made pursuant to this authority if the shares are (at the date of the proposed purchase) trading on the LSE at a discount to the lower of the undiluted or diluted NAV

the authority conferred shall expire at the conclusion of the Annual General Meeting of the Company in 2021 or, if earlier, on the expiry of 15 months from the passing of this resolution, unless such authority is renewed prior to such time and

vi  the Company may make a contract to purchase shares under the authority hereby conferred prior to the expiry of such authority which will or may be executed wholly or partly after the expiration of such authority and may make an acquisition of shares pursuant to any such contract.

 

Net changes in financial assets at fair value through profit or loss

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

31 Dec19 £

Net changes in financial assets at fair value through profit or loss
during the period comprise

 

 

Gains realised on investments sold during the period

19,603,238

22,393,284

Losses realised on investments sold during the period

(3,260,209)

(2,042,058)

Net realised gains on investments sold during the period

16,343,029

20,351,226

Movement in unrealised gains/(losses) arising from changes in fair value

2,640,615

(11,285,654)

Net changes in fair value on financial assets at fair value through profit or loss

18,983,644

9,065,572

 

Other gains/(losses)

 

1 Jul 20 to

31 Dec 20 £

1 Jul 19 to

31 Dec 19 £

Movement in unrealised gain on forward foreign currency contracts

6,756,278

1,077,612

Realised gains on forward foreign currency contracts

4,767,122

3,282,313

Foreign exchange gains/(losses) on cash and cash equivalents

20,491

(123,257)

 

11,543,891

4,236,668

 

Expenses

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

31 Dec19 £

Administration fee*

82,149

82,017

Directors' fees (note 8)

89,977

80,919

Custodian and Depositary fees*

42,903

40,066

Broker's fees

18,132

17,604

Audit fee

11,550

13,475

Auditor's remuneration for interim review

8,500

8,400

Other expenses

57,346

86,366

 

310,557

328,847

* The basis for calculating the Administration fee as well as the Custodian and Depositary fees are set out in the General Information section.

Ongoing charges ratio

The ongoing charges ratio (OCR) of an investment company is the annual percentage reduction in shareholder returns as a result of recurring operational expenditure. Ongoing charges are classified as those expenses which are likely to recur in the foreseeable future, and which relate to the operation of the company, excluding investment transaction costs, financing charges, gains or losses on investments and any other expenses of a non-recurring nature. The OCR for the current period has been calculated as the total ongoing charges for the period divided by the average net asset value over that period, in accordance with the methodology recommended by the Association of Investment Companies.

 

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

31 Dec19 £

Management fee (see note 8)

 

2,162,104

1,917,784

Other expenses (see above)

 

310,557

328,847

 

 

2,472,661

2,246,631

Excluded expenses*

 

-

(27,000)

Total ongoing expenses

 

2,472,661

2,219,631

Average NAV

 

452,235,618

414,408,659

Annualised ongoing charges ratio

 

1.09%

1.07%

* Excluded expenses in the prior period included consultancy costs relating to Board recruitment and certain non-recurring project costs.

 

Related party transactions and material contracts

The Directors are responsible for the determination of the investment policy of the Company and have overall responsibility for the Company's activities, and are therefore regarded as related parties.

Investment Management Agreement

The Company is managed by Ruffer AIFM Ltd, a subsidiary of Ruffer LLP, a privately owned business registered in England and Wales as a limited liability partnership. The Company and the Investment Manager have entered into an Investment Management Agreement under which the Investment Manager has been given responsibility for the day-to-day discretionary management of the Company's assets (including uninvested cash) in accordance with the Company's investment objective and policy, subject to the overall supervision of the Directors and in accordance with the investment restrictions in the Investment Management Agreement and the Company's Articles of Incorporation.

The market value of holdings in the LF Ruffer Funds where an investment management fee is already charged from within that fund are deducted from the NAV of the Company before the calculation of management fees on a monthly basis. For additional information, refer to the Portfolio Statement.

Total management fees charged to the capital reserves of the Company, including the outstanding management fees at the end of the period, are detailed below.

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

31 Dec19 £

Management fees for the period

2,162,104

1,917,784

 

31 Dec 2020 £

30 June 2020 £

Payable at end of the period

377,614

375,692

Shares held in Ruffer Management Limited ('RML'), the Managing Member of Ruffer LLP

During the period ended 31 December 2020, an immediate family member of the Ashe Windham, Chairman of the Company until his resignation on 4 December 2020, owned 100 (30 June 200: 100) Shares in RML, the Managing Member of Ruffer LLP, which is the parent entity of the Investment Manager of the Company. This amounts to less than 1% (30 June 2020: less than 1%) of RML's issued share capital.

Directors

As at 31 December 2020, the Company had five non-executive Directors, all of whom were independent from the Investment Manager and its parent entity, Ruffer LLP. During the period, Nick Pink was appointed as a Director on 1 September 2020 and Ashe Windham retired as a Director on 4 December 2020. On 4 December 2020, Jill May was appointed as Senior Independent Director and Christopher Russell was appointed as Chairman. There were no other changes to directorships during the period ended 31 December 2020.

The Directors of the Company are remunerated for their services at such a rate as the Directors determine provided that the aggregate amount of such fees does not exceed £200,000 (30 June 2020: £200,000) per annum.

During the period, each Director was paid a fee of £29,500 (30 June 2020: £29,500) per annum, except for the Chairman, who was paid £41,700 (30 June 2020: £41,700) per annum and the Chairman of the Audit Committee, who was paid £33,950 (30 June 2020: £33,950) per annum.

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

31 Dec19 £

Directors' fees for the period

89,977

80,919

 

31 Dec 2020 £

30 June 2020 £

Payable at end of the period

-

-

Shares held by related parties

As at 31 December 2020, Directors of the Company held the following numbers of shares beneficially.

Directors

31 Dec 20 shares

30 Jun 20 shares

Ashe Windham*

na

Christopher Russell

100,000

75,000

David Staples

80,000

80,000

Jill May

11,000

11,000

Shelagh Mason

-

-

Nick Pink

36,023

na

 

227,023

346,000

* Ashe Windham held 135,000 shares whilst his wife held 45,000 shares

Subsequent to the period end, Shelagh Mason acquired a holding of 11,325 shares in the Company.

As at 31 December 2020, Hamish Baillie, Investment Director of the Investment Manager owned 205,000 (30 June 2020: 205,000) shares in the Company.

As at 31 December 2020, Duncan MacInnes, Investment Director of the Investment Manager owned 43,100 (30 June 2020: 43,100) shares in the Company.

As at 31 December 2020, Jonathan Ruffer, chairman of Ruffer LLP, owned 1,039,335 (30 June 2020: 1,039,335) shares in the Company.

As at 31 December 2020, Ruffer LLP (the parent entity of the Company's Investment Manager) and other entities within the Ruffer Group held 7,140,778 (30 June 2020: 6,896,028) shares in the Company on behalf of its discretionary clients.

Investments in related funds

As at 31 December 2020, the Company held investments in four (30 June 2020: four) related investment funds valued at £85,695,486 (30 June 2020: £91,153,877). Refer to the Portfolio Statement for details.

 

Operating segment reporting

The Board of Directors makes the strategic decisions on behalf of the Company. The Company has determined the operating segments based on the reports reviewed by the Board, which are used to make strategic decisions.

The Board is responsible for monitoring the Investment Manager's positioning of the Company's portfolio and considers the business to have a single operating segment.

There were no changes in the reportable segments during the period.

Revenue earned is reported separately in the Statement of Comprehensive Income as dividend income received from equities, and interest income received from fixed interest securities and bank deposits.

The Statement of Cash Flows separately reports cash flows from operating and financing activities.

 

10  Investments at fair value through profit or loss

 

1 Jul 20 to

31 Dec 20 £

1 Jul 19 to

30 Jun 20 £

Cost of investments at the start of the period/year

350,041,991

351,139,573

Acquisitions at cost during the period/year

155,932,564

353,038,268

Disposals during the period/year

(143,640,903)

(391,462,001)

Gains on disposals during the period/year

16,343,029

37,326,151

Cost of investments held at the end of the period/year

378,676,681

350,041,991

Fair value above cost

53,595,666

50,955,051

Fair value of investments held at the end of the period/year

432,272,347

400,997,042

 

11  Fair Value Measurement

IFRS 13 establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value, and requires the Company to classify its financial instruments into the level of the fair value hierarchy that best reflects the significance of the inputs used in making fair value measurements. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows -

Level 1: Quoted prices, based on bid prices, (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (that is, as prices) or indirectly (that is, derived from prices) and

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

The determination of what constitutes 'observable' requires judgment by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The following table presents the Company's financial assets and liabilities by level within the valuation hierarchy at 31 December 2020.

 

Level 1 £

Level 2 £

Level 3 £

31 Dec 20

total £

Financial assets at fair value through profit or loss

 

 

 

 

Non-UK index-linked bonds

103,327,610

-

-

103,327,610

Long-dated index-linked gilts

43,643,364

-

-

43,643,364

Other index-linked gilts

14,100,384

-

-

14,100,384

Illiquid strategies and options

-

46,044,310

-

46,044,310

Equities

173,924,238

18,198,455

-

192,122,693

Gold and gold equities

11,311,265

21,722,721

-

33,033,986

Derivative financial assets

-

4,036,172

-

4,036,172

Total assets

346,306,861

90,001,658

-

436,308,519

Financial liabilities at fair value through profit or loss

 

 

 

 

Derivative financial liabilities

-

821,613

-

821,613

Total liabilities

-

821,613

-

821,613

The following table presents the Company's financial assets and liabilities by level within the valuation hierarchy at 30 June 2020.

 

Level 1 £

Level 2 £

Level 3 £

30 Jun 20

total £

Financial assets at fair value through profit or loss

 

 

 

 

Non-UK index-linked bonds

95,722,858

-

-

95,722,858

Long-dated index-linked gilts

44,790,755

-

-

44,790,755

Short-dated gilts

16,016,640

-

-

16,016,640

Other index-linked gilts

2,367,022

-

-

2,367,022

Illiquid strategies and options

-

57,608,234

-

57,608,234

Equities

115,865,893

15,477,398

1,593,750

132,937,041

Gold and gold equities

33,486,247

18,068,245

-

51,554,492

Total assets

308,249,415

91,153,877

1,593,750

400,997,042

Financial liabilities at fair value through profit or loss

 

 

 

 

Derivative financial liabilities

-

3,541,719

-

3,541,719

Total liabilities

-

3,541,719

-

3,541,719

The Company recognises transfers between levels of fair value hierarchy as of the end of the reporting period during which the transfer has occurred. During the period ended 31 December 2020, no transfers were made. In the prior year ended 30 June 2020, no transfers were made.

Movements in Level 3 investments

 

1 Jul 20to

31 Dec 20 £

1 Jul 19to

30 Jun 20 £

Opening valuation

1,593,750

1,593,750

Liquidation distribution received

(1,809,375)

-

Realised gain

215,625

-

Closing valuation

-

1,593,750

During the period, the liquidators of Renn Universal Growth Investment Trust, the Company's sole Level 3 investment, made a third liquidation distribution to shareholders of £1.93 per share. There is a chance of a further small residual payment, but of an unknown amount at an unknown date in the future, as a result of which no value has been ascribed to this investment at 31 December 2020.

Assets classified in Level 1 consist of listed or quoted equities or bonds which are issued by corporate issuers, supra-nationals or government organisations.

Assets classified in Level 2 are investments in funds fair-valued using the official NAV of each fund as reported by each fund's independent administrator at the reporting date. Where these funds are invested in equity type products, they are classified as equity in the table above. Options and foreign exchange forwards are fair valued using publicly available data. The foreign exchange forwards are shown as derivative financial assets and liabilities in the fair value hierarchy table.

Assets classified in Level 3 consist of investments for which no market exists for trading, for example investments in liquidating or illiquid funds, and are reported using the latest available official NAV less dividends declared to date of each fund as reported by each fund's independent administrator at the last reporting date. Where a market exists for trading in illiquid funds, these are classified in Level 2.

 

12  NAV reconciliation

The Company announces its NAV, based on bid value, to the LSE after each weekly and month end valuation point. At the time of releasing the NAV to the LSE for 31 December 2020, not all the latest prices for the investments were available. Adjustments are made to the NAV in the Financial Statements once these prices became available. The following is a reconciliation of the NAV per share attributable to redeemable participating preference shareholders as presented in these Financial Statements, using IFRS, to the NAV per share reported to the LSE.

 

31 Dec 20

 

30 June 20

 

NAV £

NAV per share £

 

NAV £

NAV per

share £

NAV per share published on the LSE as at the period/year end

471,058,880

2.6056

 

444,397,682

2.4581

Adjustments to valuations

1,387,464

0.0077

 

(285,301)

(0.0016)

Net assets attributable to holders of redeemable participating preference shares

472,446,344

2.6133

 

444,112,381

2.4565

 

 

13  Subsequent events

These Financial Statements were approved for issuance by the Board on 26 February 2021. Subsequent events have been evaluated up until this date.

On 4 February 2021, the Company announced a tap issue of 500,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 270.0p per share.

On 10 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 275.5p per share.

On 11 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 275.5p per share.

On 18 February 2021, the Company announced a further tap issue of 500,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.5p per share.

On 24 February 2021, the Company announced a further tap issue of 750,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.25p per share.

On 25 February 2021, the Company announced a further tap issue of 1,000,000 redeemable participating preference shares in the Company under its block listing facility at an issue price of 276.25p per share.

A second interim dividend of 0.95p per share in respect of the half year ended 31 December 2020 was declared on 26 February 2021. The dividend is payable on 27 March 2021 to shareholders on record at 13 March 2021.

Portfolio statement

as at 31 December 2020 (unaudited)

 

 

Currency

Holdingat

31 Dec 20

Fair
value £

% of total

netassets

Government bonds 34.09%

 

 

 

 

(30 Jun 20: 35.78%)

 

 

 

 

Non-UK index-linked bonds

 

 

 

 

Japanese index linkedbond10/03/2026

JPY

350,000,000

2,520,155

0.53

Japanese index linkedbond10/03/2027

JPY

350,000,000

2,530,496

0.54

Japanese index linkedbond10/03/2028

JPY

350,000,000

2,503,594

0.53

US Treasury inflation indexed bond 0.125%15/04/2021

USD

10,000,000

8,065,124

1.71

US Treasury inflation indexed bond 0.125%15/04/2022

USD

11,986,100

9,585,206

2.03

US Treasury inflation indexed bond 0.625%15/04/2023

USD

12,049,300

9,728,679

2.06

US Treasury inflation indexed bond 1.75%15/01/2028

USD

22,000,000

24,534,858

5.19

US Treasury inflation indexed bond 0.875%15/01/2029

USD

15,000,000

13,296,606

2.81

US Treasury inflation indexed bond 0.625%15/02/2043

USD

4,900,000

5,058,935

1.07

US Treasury inflation indexed bond 0.75%15/02/2045

USD

9,836,000

10,259,177

2.17

US Treasury inflation indexed bond 1.0%15/02/2049

USD

2,000,000

2,130,972

0.45

US Treasury inflation indexed bond 0.25%15/02/2050

USD

14,862,400

13,113,808

2.78

Total non-UK index-linked bonds

 

 

103,327,610

21.87

UK index-linked gilts

 

 

 

 

Long-dated index-linked gilts

 

 

 

 

UK index-linked gilt0.375%22/03/2062

GBP

6,050,000

20,117,300

4.26

UK index-linked gilt0.125%22/03/2068

GBP

6,800,000

23,526,064

4.98

Total long-dated index-linked gilts

 

 

43,643,364

9.24

Other index-linked gilts

 

 

 

 

UK index-linked gilt1.875%22/11/2022

GBP

9,000,000

14,100,384

2.98

Total UK index-linked gilts

 

 

57,743,748

12.22

Total government bonds

 

 

161,071,358

34.09

Equities 40.67%

 

 

 

 

(30 Jun 20: 29.93%)

 

 

 

 

Europe

 

 

 

 

Aena

EUR

20,000

2,540,903

0.54

Arcelormittal

EUR

200,000

3,375,950

0.71

Carrefour

EUR

180,000

2,257,845

0.48

Vinci

EUR

60,000

4,364,417

0.92

Volkswagen

EUR

34,000

4,620,474

0.98

Yara

NOK

105,000

3,190,781

0.68

Total Europe equities

 

 

20,350,370

4.31

 

 

 

 

Currency

Holdingat

31 Dec 20

Fair
value £

% of total

netassets

United Kingdom

 

 

 

 

Aberforth Smaller Companies

GBP

45,400

562,960

0.12

Artemis Alpha Trust

GBP

160,000

630,400

0.13

Barclays

GBP

3,400,000

4,987,120

1.06

Barratt Developments

GBP

300,000

2,009,400

0.43

Belvoir Lettings

GBP

695,000

1,042,500

0.22

BP

GBP

2,200,000

5,605,600

1.19

Breedon

GBP

1,700,000

1,485,800

0.31

Countryside Properties

GBP

1,050,206

4,908,663

1.04

Grit Real Estate

GBP

1,626,850

780,888

0.17

Hipgnosis Songs Fund

GBP

1,400,000

1,729,000

0.37

Independent Investment Trust

GBP

100,000

512,000

0.11

Land Securities

GBP

340,000

2,288,200

0.48

Lloyds Banking Group

GBP

31,776,800

11,579,466

2.45

Montanaro UK Smaller Companies

GBP

300,000

432,000

0.09

Natwest Group

GBP

3,736,790

6,259,123

1.32

North Atlantic Smaller Companies

GBP

15,500

573,501

0.12

Ocado Group

GBP

115,000

2,613,950

0.55

PRS Real Estate Investment Trust

GBP

2,500,000

1,900,000

0.40

Renn Universal Growth Trust

GBP

937,500

-

-

Royal Dutch Shell B

GBP

440,000

5,541,360

1.17

Ruffer SICAV UK Mid & Smaller Companies Fund*

GBP

71,400

18,198,455

3.85

Secure Trust Bank

GBP

58,345

491,265

0.10

Tesco

GBP

3,000,000

6,942,000

1.47

Tufton Oceanic Assets

USD

2,348,347

1,563,274

0.33

Total UK equities

 

 

82,636,925

17.48

 

 

 

 

Currency

Holdingat

31 Dec 20

Fair
value £

% of total

netassets

North America

 

 

 

 

Aflac

USD

84,000

2,731,997

0.58

Ambev

USD

1,688,700

3,767,765

0.80

American Express

USD

55,000

4,863,899

1.02

Berkshire Hathaway

USD

13,000

2,204,770

0.47

Bristol Myers Squibb CVR

USD

77,000

38,866

0.01

Cemex

USD

370,000

1,396,635

0.30

Centene

USD

75,000

3,291,331

0.70

Charles Schwab

USD

90,000

3,474,250

0.74

Cigna

USD

30,000

4,568,691

0.97

Ehealth

USD

40,300

2,081,921

0.44

Galaxy Digital Holdings

CAD

350,000

2,169,671

0.46

General Motors

USD

136,000

4,141,683

0.88

Microstrategy

USD

4,009

1,139,500

0.24

Uber

USD

25,000

932,699

0.20

Walt Disney

USD

56,000

7,418,873

1.57

Total North America equities

 

 

44,222,551

9.38

Japan

 

 

 

 

Central Glass

JPY

13,000

206,760

0.04

Dena

JPY

28,600

372,002

0.08

Fuji Electric

JPY

105,000

2,763,471

0.58

Fuji Media

JPY

34,600

269,635

0.06

Fujitec

JPY

18,900

298,187

0.06

Fujitsu

JPY

32,000

3,377,871

0.71

Japan Petroleum Exploration

JPY

10,800

143,537

0.03

Kato Sangyo

JPY

17,900

441,305

0.09

Koito Manufacturing

JPY

6,500

322,803

0.07

Mitsubishi Electric

JPY

280,000

3,087,550

0.65

Mitsubishi Heavy Industries

JPY

120,000

2,656,673

0.56

NEC

JPY

78,000

3,055,811

0.65

Nippo

JPY

13,500

270,088

0.06

Nippon Seiki

JPY

35,500

293,499

0.06

Nippon Television

JPY

22,300

177,415

0.04

 

 

 

Currency

Holdingat

31 Dec 20

Fair
value £

% of total

netassets

Nissan Shatai

JPY

55,000

336,807

0.07

Nomura Real Estate

JPY

270,000

4,365,019

0.92

Orix

JPY

370,000

4,152,061

0.88

Sekisui Jushi

JPY

8,800

135,659

0.03

Shin-Etsu Polymer

JPY

33,100

221,129

0.05

Sony

JPY

46,000

3,351,729

0.71

Sumitomo Mitsui Financial Group

JPY

170,000

3,839,494

0.81

Tachi-S

JPY

43,200

359,607

0.08

Teikoku Sen-I

JPY

26,900

455,277

0.10

Toagosei

JPY

31,600

271,105

0.06

Toei Animation

JPY

11,500

657,473

0.14

Toei

JPY

2,000

238,038

0.05

Token

JPY

4,400

254,049

0.05

Tokio Marine

JPY

62,000

2,331,029

0.49

Tokyo Broadcasting System

JPY

17,400

223,241

0.05

Toppan Forms

JPY

26,800

200,496

0.04

Torii Pharmaceutical

JPY

9,700

221,276

0.05

Toyota

JPY

5,100

295,550

0.06

TS Tech

JPY

10,000

225,640

0.05

TV Asahi

JPY

15,900

190,479

0.04

Total Japan equities

 

 

40,061,765

8.47

Asia (ex-Japan)

 

 

 

 

Swire Pacific

HKD

730,000

2,963,082

0.63

Weiss Korea Opportunity Fund

GBP

800,000

1,888,000

0.40

Total Asia (ex-Japan) equities

 

 

4,851,082

1.03

Total equities

 

 

192,122,693

40.67

Gold and gold equities 6.99%

 

 

 

 

(30 Jun 20: 11.61%)

 

 

 

 

AngloGold Ashanti

USD

90,000

1,488,588

0.31

IAmGold

USD

1,100,000

2,953,182

0.63

Ishares Physical Gold

USD

120,000

3,245,135

0.69

Kinross Gold

USD

675,000

3,624,360

0.76

LF Ruffer Gold Fund*†

GBP

6,714,906

21,722,721

4.60

Total gold and gold equities

 

 

33,033,986

6.99

 

 

 

Currency

Holdingat

31 Dec 20

Fair
value £

% of total

netassets

Illiquid strategies and options 9.75%

 

 

 

 

(30 Jun 20: 12.97%)

 

 

 

 

Ruffer Illiquid Multi Strategies Fund 2015*

GBP

52,961,000

37,071,905

7.85

Ruffer Protection Strategies International*

GBP

3,769,126

8,972,405

1.90

Total illiquid strategies and options

 

 

46,044,310

9.75

Total investments

 

 

432,272,347

91.50

Cash and other net current assets

 

 

40,173,997

8.50

 

 

 

472,446,344

100.00

* Ruffer Protection Strategies International and Ruffer Illiquid Multi Strategies Fund 2015 Ltd are classed as related parties as they share the same Investment Manager (Ruffer AIFM Limited) as the Company. LF Ruffer Gold Fund and Ruffer SICAV UK Mid & Smaller Companies Fund are also classed as related parties as their investment manager (Ruffer LLP) is the parent of the Company's Investment Manager.

No management fee is charged by Ruffer AIFM Limited on this investment.

General information

 

Ruffer Investment Company Limited was incorporated in Guernsey as a company limited by shares and as an authorised closed-ended investment company on 1 June 2004. The Company launched on the London Stock Exchange on 8 July 2004, with a launch price of 100p per share and an initial net asset value of 98p per share. The principal objective of the Company is to achieve a positive total annual return, after all expenses, of at least twice the Bank of England base rate. The Company invests predominantly in internationally listed or quoted equities or equity related securities (including convertibles) and/or bonds which are issued by corporate issuers, supra-nationals or government organisations.

The Company's redeemable participating preference shares are listed on the London Stock Exchange.

The Company reports its audited annual results each year for the year ended 30 June, and its unaudited interim results for the six months ended 31 December. These Unaudited Condensed Interim Financial Statements were authorised for issue on 26 February 2021 by the Directors.

The Investment Manager is authorised and regulated by the United Kingdom Financial Conduct Authority as a full-scope Alternative Investment Fund Manager (AIFM). The Investment Manager is entitled to an investment management fee payable to the AIFM monthly in arrears at a rate of 1% of the Net Asset Value per annum.

The Investment Manager and the Board intend to conduct the affairs of the Company so as to ensure that it will not become resident in the United Kingdom. Accordingly, and provided that the Company does not carry on a trade in the United Kingdom through a branch or agency situated therein, the Company will not be subject to United Kingdom Corporation Tax or Income Tax.

The Company intends to be operated in such a manner that its shares are not categorised as non- mainstream pooled investments. This means that the Company might pay dividends in respect of any income that it receives or is deemed to receive by reference to UK tax rules so that it would qualify as an investment trust if it were UK tax-resident.

Praxis Fund Services Limited (the 'Administrator') is entitled to receive an annual fee equal to 0.08%. per annum on the first £100 million; 0.04%. per annum between £100 million and £200 million; 0.02%. per annum between £200 million and £300 million; and 0.015%. per annum thereafter; based on the NAV of the Company on a mid-market basis, subject to a minimum fee of £100,000 per annum.

Northern Trust (Guernsey) Limited (the 'Custodian') is entitled to receive from the Company a fee of £2,000 per annum. The Custodian is also entitled to charge for certain expenses incurred by it in connection with its duties.

Northern Trust (Guernsey) Limited (the 'Depositary') is entitled to an annual Depositary fee payable monthly in arrears at a rate of 0.01% of the Net Asset Value of the Company up to £100 million, 0.008% on the next £100 million and 0.006% thereafter as at the last business day of the month subject to a minimum fee of £20,000 per annum.

Management and administration

Directors

Christopher Russell

Jill May

David Staples

Shelagh Mason

Nicholas Pink

Registered office

Sarnia House

Le Truchot

St Peter Port

Guernsey GY1 1GR

Auditor

Deloitte LLP

Regency Court

Glategny Esplanade

St Peter Port

Guernsey GY1 3HW

Investment Manager and Alternative Investment Fund Manager

Ruffer AIFM Limited

80 Victoria Street

London SW1E 5JL

Sponsor and broker

Investec Bank plc

30 Gresham Street

London EC2V 7QP

Solicitors to the Company as to UK law

Gowling WLG

4 More London Riverside

London SE1 2AU

Company Secretary and Administrator

Praxis Fund Services Limited

Sarnia House

Le Truchot

St Peter Port

Guernsey GY1 1GR

CREST agent

Computershare Investor Services (Jersey) Limited Queensway House

Hilgrove Street

St Helier

Jersey JE1 1ES

Advocates to the Company as to Guernsey law

Mourant Ozanne

Royal Chambers

St Julian's Avenue

St Peter Port

Guernsey GY1 4HP

Custodian

Northern Trust (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey GY1 3DA

Depositary

Northern Trust (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey GY1 3DA

 

Appendix (unaudited)

 

Performance data

To 31 Dec

96

97

98

99

00

01

02

03

04

05

06

07

08

Ruffer

10.6

19.8

22.7

-0.2

16.8

5.5

3.0

16.8

11.3

-

-

-

-

RIC NAV TR

-

-

-

-

-

-

-

-

-

14.0

0.1

6.0

23.8

FTSE All-Share

16.7

23.6

13.8

24.2

-5.9

-13.3

-22.7

20.9

12.8

22.0

16.8

5.3

-29.9

Twice Bank Rate

12.7

13.8

15.6

11.3

12.5

11.0

8.3

7.7

9.0

9.7

9.6

11.5

10.3

 

 

09

10

11

12

13

14

15

16

17

18

19

20

 

-

-

-

-

-

-

-

-

-

-

-

-

 

15.1

16.5

0.7

3.4

9.5

1.8

-1.0

12.4

1.6

-6.0

8.4

13.5

 

30.1

14.5

-3.5

12.3

20.8

1.2

1.0

16.8

13.1

-9.5

19.2

-9.8

 

1.5

1.0

1.0

1.0

1.0

1.0

1.0

0.8

0.5

1.2

1.5

0.5

 

Source: Thomson Datastream, Ruffer, FTSE International (FTSE). Ruffer performance comprises the performance from June 1995 to July 2004 for Ruffer's representative portfolio, an unconstrained segregated portfolio following Ruffer's investment approach (derived from internal management information produced by Ruffer LLP), and from July 2004 to December 2020 for the Ruffer Investment Company Limited NAV (total return). Performance is shown after deduction of all fees and management charges, and on the basis of income being reinvested. Please note that past performance is not a reliable indicator of future performance. The value of the shares and the income from them can go down as well as up and you may not get back the full amount originally invested. The value of overseas investments will be influenced by the rate of exchange. Calendar quarter data has been used up to the latest quarter end and monthly data thereafter. † FTSE International Limited (FTSE) © FTSE 2021. FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE's express written consent. FTSE does not promote, sponsor or endorse the content of this communication.

 

 

[1] Assumes reinvestment of dividends

[2] Dividends declared during the period

[3] Annual dividend yield is calculated using share price at the period end and dividends declared during the period

[4] See note 7

[5] This is the NAV per share as per the Financial Statements. Refer to note 12 for a reconciliation between this figure and the NAV per share as reported to the LSE

 

 

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