Interim Management Statement

Ruffer Investment Company Limited
02 November 2007


               Ruffer Investment Company Limited ('the Company')
           Interim Management Statement - 30 June to 31 October 2007

Performance Summary

The NAV of the Company increased from 116.70p at 30 June 2007 to 120.10p at 31
October 2007, net of a 1.25p dividend. For the period under review, the Company
recorded a positive total return (net of fees and expenses) of 4.0%, compared to
the objective return of 3.8%, being twice the time weighted Bank of England base
rate over the period. Since inception, the Company has achieved a positive total
return of 27.1%.

The price increased from 112.25p at 30 June 2007 to 117.50p at 31 October 2007.
The discount to NAV decreased from -5.2% at 30 June 2007 to -2.4% at 31 October
2007.

Quarterly return history

Date  30 Sep 04  31 Dec 04  31 Mar 05 30 Jun 05 30 Sep 05  31 Dec 05  31 Mar 06
                                          
NAV     101.2p    106.7p    107.2p*    112.2p    117.4p*    120.5p    122.5p*
% Growth +3.3%     +5.4%     +0.5%     +4.3%     +4.6%      +2.6%     +2.1%


Date  30 Jun 06  30 Sep 06  31 Dec 06 30 Mar 07  30 Jun 07   30 Sep 07
NAV     119.4p     118.8p*    119.6p     118.7p*    116.7p     120.4p*
% Growth +2.5%      -0.5%      +0.7%      -0.8%      -1.7%      +3.2%


*  Ex dividend 0.5p 30 Mar 05, 7 Sept 05, 31 Mar 06, 27 Sept 06, 1.25p 30 Mar 07
   and 28 Sept 07 Source: Ruffer LLP

Financial Position

Ten largest holdings Ten largest holdings
31 October 2007 30 June 2007

Stock                  % of Fund   Stock                               % of Fund
UK Treasury 4.25% 2011       8.7   UK Treasury 4% 2009                     9.0
Austria 3% 2009              8.1   Austria 3% 2009                         8.3
UK Treasury 4% 2009          7.7   Swiss Govt 3.5% 2033                    5.7
UK Treasury 4.75% 2010       5.5   UK Treasury 4.75% 2010                  5.5
Norway Govt 6% 2011          5.1   Norway Govt 5.5% 2009                   5.5
UK Treasury 5% 2012          4.7   Norway Govt 6% 2011                     4.9
Swiss Govt 4% 2028           4.4   Swiss Govt 4% 2028                      4.4
Swiss Govt 1.75% 2009        4.2   Swiss Govt 1.75% 2009                   4.3
UK Treasury 1.25% 2017       3.6   UK Treasury 5.75% 2009                  3.4
Swiss Govt 3.5% 2033         2.4   Unilever                                2.6
Source: Ruffer LLP

Five largest equity holdings Five largest equity holdings
31 October 2007 30 June 2007

Stock                 % of Fund   Stock                                % of Fund
Nippon Tel & Tel            2.3   Unilever                                 2.6
Newmont Mining              2.1   Invensys                                 2.1
Newcrest Mining             2.0   Central Japan Railway                    2.0
Kao                         1.9   United Microelectronics                  1.9
Central Japan Railway       1.9   Kao                                      1.8
Source: Ruffer LLP


Material Transactions

Five largest purchases
30 June 2007 - 31 October 2007

Date          Security Description                                     Cost

18/09/2007    4.25% Treasury Stock 2011                            £11,111,580
28/09/2007    5% Treasury Stock 2012                                £5,996,400
03/10/2007    1.25% Treasury Loan Stock 2017                        £4,603,823
31/07/2007    Swisscom                                              £1,697,539
25/10/2007    Coca-Cola                                             £1,465,470

Source: Ruffer LLP
Five largest sales

30 June 2007 - 31 October 2007

Date           Security Description                                  Proceeds

18/09/2007     4% Treasury Stock 2009                              £11,119,200
23/10/2007     Norway Govt 5.5% 2009                                £7,472,660
28/09/2007     5.75% Treasury Stock 2009                            £4,307,800
25/10/2007     Swiss Govt 3.5% 2033                                 £2,923,467
28/09/2007     UK Treasury STRIP 5.75% 2009                         £1,789,200

Source: Ruffer LLP

The Company increased its cash weighting during the period from zero at 30 June
2007 to 2.5% at 31 October 2007.

The NAV of the Company at 30 June 2007 was £123.8m and this increased to £127.4m
at 31 October 2007. The market capitalisation was £125.6m at the start of the
period under review and this increased to £126.2m at 31 October 2007.

On 28 September 2007 the Company paid a dividend per share of 1.25p (£1.326m in
aggregate), giving a total dividend for 2007 of 2.50p.

Material Events

The Board of the Company is not aware of any significant event which has
occurred between the 30 June 2007 and the date of the publication of this
statement which would have a material impact on the financial position of the
Company.

However, please note the following two announcements made during the period:

16 October 2007: 'The Directors have, on this occasion (the first opportunity
for the redemption facility to operate), resolved to exercise their discretion
to offer a redemption facility for up to 25 per cent of the Company's issued
share capital at the prevailing Net Asset Value per Share on the Redemption Date
(29 November 2007) (less the costs of the redemption)'.

27 September 2007: 'Under the Company's Articles there is the requirement that
shareholders vote on the future of the Company after its operation for 3 years.
This is therefore the subject of Special Resolution No 3 at the forthcoming AGM.
The directors recommend shareholders vote in favour of the Company continuing as
an investment company because the investment manager's ability to earn a
positive return in turbulent economic times is proven.'

2 November 2007



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