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Ruffer Investment Co (RICA)

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Monday 19 July, 2021

Ruffer Investment Co

Investment Manager's Year End Review

RNS Number : 5821F
Ruffer Investment Company Limited
19 July 2021
 

Ruffer Investment Company Limited

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

LEI 21380068AHZKY7MKNO47

19 July 2021

Investment Manager's Year End Review

For the year ended 30 June 2021

The following review from the Investment Manager of Ruffer Investment Company Limited (the "Company") covers 12 month period to 30 June 2021. This review is intended to give shareholders unaudited key performance indicators and a portfolio review in a timely fashion. The audited Annual Financial Statements for the year ended 30 June 2021 will be released in the usual manner prior to the end of October 2021.

Attached is a link to the Year End Review - http://www.rns-pdf.londonstockexchange.com/rns/5821F_1-2021-7-17.pdf

The Year End Review is also available via the Company's Investment Manager's website ruffer.co.uk 

Key performance indicators

 

30 June 2021 %

30 June 2020 %

Share price total return over 12 months1

19.5

12.4

NAV total return per share over 12 months1

15.3

10.1

Premium/(discount) of share price to NAV

2.0

(1.5)

Dividends per share over 12 months2

1.90p

1.85p

Annualised dividend yield3

0.7

0.8

Annualised NAV total return per share since launch1

7.9

7.4

Ongoing charges ratio4

1.08

1.08

Financial highlights

 

30 June 2021

30 June 2020

Share price

287.00p

242.00p

NAV

£575,913,008

£444,389,282

Market capitalisation

£587,541,854

£437,507,967

Number of shares in issue

204,718,416

180,788,416

NAV per share5

281.32p

245.81p

1 Assumes reinvestment of dividends

2 Dividends paid during the period

3 Dividends paid during the year divided by closing share price

4 Calculated in accordance with AIC guidance

5 NAV per share as released on the London Stock Exchange

 

Investment Manager's report

Performance review

For the year to 30 June 2021 the company had a share price return of 19.5% and the NAV return of 15.3%.

The company has achieved its objective of preserving shareholder capital regardless of the market conditions. In last year's report we wrote "we feel confident about our prospects from here" and results have borne that out.

Today, our conviction in the long-term inflationary endgame has never been higher but we are cognisant of the fact that the journey to that point will not be direct and the timing is uncertain. For that reason it has never been more important to hold a mix of assets that will deliver our investment objectives regardless of the direction of financial markets. We will continuously aim to provide a superior risk adjusted return which focuses on preservation of capital and is uncorrelated with equities or any other asset class.

Performance

NAV TR %

NAV TR
annualised %

Share price
TR %

Share price TR annualised  %

Correlation
with equities

1 year

15.3

15.3

19.5

19.5

0.69

3 years

25.8

8.0

26.9

8.3

0.43

5 years

37.9

6.6

41.2

7.1

0.45

10 years

62.7

5.0

59.5

4.8

0.51

Since inception (Jul 2004)

259.4

7.8

265.2

7.9

0.45

Portfolio attribution

Ruffer Investment Company is not alone in posting good performance numbers over the last 12 months. However, our returns are distinctive both in terms of their source and profile.

The shape of the equity book - our equity risk has been focused on value, cyclicals, commodities, and financials since 2018. We added to these positions in the summer of 2020 when the market was most enamoured with the 'covid winners'. We enjoyed particularly strong returns from the stocks geared into re-opening and recovery; UK banks (+57% and 256bps), Walt Disney (+67% and 82bps), General Motors (+135% and 84bps), Cemex (+115% and 40bps) and Arcelor Mittal (+97% and 65bps). These thematic exposures in the portfolio drove significant performance, particularly since the announcement of the vaccine approvals in November 2020.
Exposure to UK equities, previously unloved by investors, also came to life with our smaller companies exposure of around 5% adding 186bps to the return in the 12 months.

Bitcoin - exposure to bitcoin was a significant contributor over the period (+515bps) and offers a good example of the flexibility of the Ruffer strategy and our willingness to embrace uncomfortable or idiosyncratic risks. A well-timed exit of our exposure in April 2021 avoided giving back much of the gain in the recent sell-off. MicroStrategy (+421% and 47bps) and Galaxy Digital (+337% and 58bps) were also sold in February.

Active duration management - Q1 2021 was one of the worst for bonds in modern history. Despite having over 30% of the portfolio in index-linked bonds, we were able to offset the damage from this risk through the opportunistic use of payer swaptions that lowered the net portfolio duration (sensitivity to changes in interest rates) to zero and index-linked bonds were helped by rising inflation expectations.

Credit protections which helped the portfolio to weather the covid crash were significantly monetised in the heat of the crisis in March 2020. However, within the period, the remaining position gave back 250bps of performance as governments and central banks rode to the rescue of corporate debt markets. We decided it was necessary to retain some of these positions due to ongoing fragility and uncertainty in markets, but the position was reduced in both size and potency.

Gold's contribution was also negative, something that feels quite anomalous in the context of rampant monetary stimulus and inflation concerns. On 30th June 2020, the gold price was $1,780 and it closed the period a year later at $1,790 up less than 1% with the gold mining equities index also flat. Our exposure is focused on higher beta, more operationally geared smaller gold mining stocks.

Portfolio changes

In the interim report we covered our rationale for adding bitcoin exposure plus two bitcoin proxies (MicroStrategy and Galaxy Digital) in November 2020. The rationale was that bitcoin was an emerging store of value and institutional investors would move to adopt it as a 'digital gold'. This narrative played out faster than we could have foreseen.

Bitcoin may yet fulfil its potential, but the market displayed many signs of froth - retail speculation, excessive leverage, the Coinbase IPO, Tom Brady's laser eyes, Dogecoin, Elon Musk hosting Saturday Night Live, $60m non-fungible tokens (NFTs) etc.

In the short term at least, bitcoin was exhibiting the characteristics of a risky, speculative asset and therefore no longer fulfilled the portfolio role we had intended for it as a protective and diversifying asset. We sold all our exposure in April (+515bps performance contribution). Our Chief Investment Officer, Henry Maxey, surmised that excess liquidity has a wonderful way of bringing the hopes of the future into the prices of the present.

During the period there were two returns of capital from Ruffer Illiquid Multi-Strategies Fund 2015. Firstly 0.7% in March and then 2.3% in June 2021. In effect, this was a return of some of the profits from the bitcoin exposure.

Having been hedged for the interest rate spike in Q1 2021, in May and June we added 3% to the long-dated UK index-linked gilts taking these to 13% of the portfolio. We continue to believe these are the best assets for the extended period of financial repression we envisage for the coming years.

Within the equity book, we have been focused on reducing risk in the summer months after value and cyclical stocks experienced a strong run. We have kept equities at around 40% with consistent sales and we have slowly rotated into what we have come to call 'the forgotten middle' making up around 8% of the portfolio. This is a cohort of defensive companies which are delightfully dull, sit outside the bluster of the value/growth debate and offer solid cyclically insensitive earnings on low valuations. This includes Tesco, Cigna and Centene, but also newer purchases like GlaxoSmithKline, Fresenius Medical and BAE Systems.

Investment outlook

A new inflationary regime

In previous reports and elsewhere we have argued covid has acted as an accelerant, catapulting the world into a new economic regime. This new regime is characterised by the adoption of more interventionist policies to target explicitly political causes such as climate change or inequality. This blurring of the lines between monetary and fiscal policy will lead to higher economic and inflation volatility and marks a stark contrast to the benign period of the past 40 years.

However, we are currently enjoying an economic boom which may well extend into 2022. What is the recipe? Take one-part unleashed animal spirits as we exit lockdown, mix with accumulated lockdown savings, pour on lashings of stimulus - serve in a supply constrained glass.

The debate du jour is whether the current inflationary spurt we are living through is a symptom of this new economic regime or a transitory hangover from the supply and demand disruptions of the lockdowns. The scale and breadth of the inflationary impulse is stunning. The percentage of businesses raising prices is at a 35 year high in the US.

This is not a US phenomenon: global data is very similar. Wage pressures are everywhere, companies cannot get staff. McDonalds are paying candidates $50 to attend interviews. Shortages are a key sign of inflation. The US administration has no sympathy for corporates: if you want workers back, pay them more - this is about levelling up and inequality too.

Used car prices, container shipping rates, house prices, hotel rates, the cost of eating out - the trend is clear, and it is up. Yet long term measures of inflation expectations remain anchored, the market is confident this impulse shall recede.

We think this 'transitory debate' misses the point entirely. Of course, house prices will not rise at 10-20% annualised forever. Inflation is simply a measure of the rate of change. If that delicious beer garden pint was £4.50 in 2019 and now it costs £6, it has inflated by 33%. Next year it might cost £6.25. The Bank of England might say "See! Inflation was transitory, it's only 4%, we told you!", but unless wages have risen by 39% since 2019, you should be feeling worse off.

We fully appreciate that due to base effects it is highly likely that as re-opening enthusiasm wanes inflation is likely to be lower next year. Technically, the transitory crew might be correct, but unless the beer reverts to £4.50, we would say it is 1-0 to the inflation hawks in the real world. The price level is what comes out of your pocket not the second derivative.

This is a febrile environment for a wage and demand spiral considering the context of vast ongoing quantitative easing and seemingly endless fiscal stimulus packages.

The big problem is if the inflationary genie is out of the bottle, how might policymakers get it back in?

The textbook response is that the central bank should raise interest rates. Realistically however, this tool is not available to today's cohort of central bankers for multiple reasons. Firstly, the burden of debt in the world is just too great to service at higher interest costs. Secondly, the political pressures to keep financial conditions supportive in aid of activist policy goals such as tackling climate change or inequality have only grown stronger. So, if these inflationary pressures prove more than transitory, we may realise for the first time in a few decades that central bankers are not omnipotent.

"No, Mr Bond, I expect you to die."

What are the portfolio implications of all this?

Despite global stock indices finishing the period at all-time highs, bond yields remaining low, credit spreads tight and property prices booming, we must re-emphasise how dangerous we believe the coming environment of inflation and volatility is for conventional portfolios.

Inflation changes the way cross-asset correlations behave. Today, the portfolio role of bonds is spent: their role as a hedge is suspect and they effectively guarantee investors will miss their return targets. Remind me why you own bonds?

We saw a glimpse of the future in Q1 2021 when the 30 year US Treasury, supposedly the safest asset in the world, fell by more than 20% for the first time ever.

Current inflation readings correlate to a US ten year bond yield of 5-6% not the current 1.5%. The evidence is the market is sanguine about any enduring inflation risks.

There is an asymmetry of risk, however. Bonds are a mathematically bounded asset class - returns are certain to be low, a best case of 1.5% over 10 years before any inflation risk. If inflation risks recede, then bond investors will earn a zero or slightly negative after inflation return. If inflation remains elevated, then the risks for bond owners are catastrophic. Heads you don't win much, tails you lose a lot. The US ten year yield moving to just 3% (where it was in 2018) would cause a loss of about 15% to bond holders.

Going further, investment grade credit paradoxically offers record low yields despite record levels of debt outstanding. The mathematics of bonds is such that at lower rates the duration increases. This asset class is vulnerable to even the smallest change in yields in response to a change in inflation, credit or term risk premiums. Just a 1% change in investor's required returns will wipe out seven years of coupon income in capital losses.

How are we protecting our shareholder's capital?

The key takeaway is the traditional portfolio ballast in bonds is not just failing to protect, but is actively adding to overall risk. But if conventional hedges are not going to cut it in the new inflationary world, what else is there?

The benefit of being global, multi-asset, unbenchmarked investors is you can go anywhere and invest in anything. This flexibility is increasingly essential in a world where safe havens are so expensive they have become dangerous.

Inflation-linked bonds offer the natural bolthole for investors fleeing the tyranny of fixed income. At the period end we had 26% of the portfolio in these bonds, the key asset being 13% in long-dated UK inflation-linked gilts. The main driver for index-linked returns is the gap between inflation and bond yields. This is something we expect to widen significantly as inflation and growth accelerate, but bond yields remain pinned to the floor under the heavy boot of central bankers.

Gold continues to be a key asset for protection against rising inflation, financial repression and failing trust in institutions. In the last year, precious metals lost some limelight to bitcoin, but the relative stability in recent months has reminded investors of its attractions. We continue to think of the gold price as the inverse of the market's faith in central bankers' ability to micromanage the economy.

We believe for true protection we will need to rely upon the unconventional protective toolkit we have assembled in the last few years.

Credit protection proved its worth last March when these investments almost doubled. Being long credit spreads via Ruffer Multi-Strategies Fund 2015 continues to look a very attractive proposition. The risk/reward is highly skewed in our favour from the current starting point and from a portfolio perspective is almost certain to have a negative correlation to risk assets.

Payer swaptions offer the right, but not the obligation, to enter in a 'pay fixed, receive floating swap agreement'. In essence, an option which benefits from rising bond yields. Rising yields are a tough environment for most asset classes and that makes this a rare and potent protection.

Equity puts - we continue to utilise puts on indices as a direct hedge to manage risk and net exposure.

Other tools - although not currently of meaningful size in the portfolio we continue to monitor the VIX, relative value arbitrage, FX volatility and cryptocurrencies as tools for further protection and diversification.

We are also finding attractive investment opportunities in select real assets which are slightly off the beaten track - PRS Reit, Hipgnosis Songs Fund, Trident Royalties, Weiss Korea, Tufton Oceanic Assets and Taylor Maritime Investments all add something different to the portfolio.

Equities - there is currently one big duration trade going on in markets. Growth stocks are underpinned by the same low bond yield that makes conventional bonds an unattractive addition to the portfolio.

This dynamic is pervasive, reflecting a huge swathe of portfolios in the market and yet, as per bond prices, it could break down spectacularly if inflationary pressures persist. Some investors have bought into the siren-song that equities are an inflation hedge. Unfortunately, the facts do not support this, particularly from the current starting point.

Equities like low and stable inflation, as we have had in the last 30 years. Equities do not like deflation or higher inflation - both scenarios cause a de-rating of the market. This risk is particularly pernicious from the current starting point of the highest equity multiples on record.

To use a crude example, Microsoft may have the pricing power to pass on inflation but perhaps inflation adds an economic risk premium that takes the p/e multiple from the current 34x to 20x, where it was five years ago (a 40% drawdown). In 2012, Microsoft's P/E ratio was 10x.

Reality is more nuanced; there are many equities which could act as inflation hedge. We own many in the portfolio - banks, financials, energy stocks and commodity producers like Glencore or Yara.

The problem for passive or benchmarked investors is these stocks have withered to a small percentage of the index. If you own the index, you do not own enough of them to make a difference. In 1980 the energy sector, an obvious inflation beneficiary, was 28% of the S&P 500, in 2008 it was 15%, today it is 3% - the whole sector is about half as big as Apple.

The bull case for commodity stocks is simple. They are a pure beneficiary of higher global economic activity. The trends for growth, technology and ESG investing have left them unloved and lowly valued. The green transition, which we fully embrace and have encouraged our investee companies to embrace, has raised the cost of capital for these industries meaning there has been little new supply or capex for several years. But the demand picture is, perhaps counterintuitively, rather bright. Global oil demand is forecast to continue to grow for at least another five years and a green world requires fixed capital and commodity investment spent upfront. One cannot make an electric car or a smart grid without a lot of copper and cobalt (Glencore) or a significant amount of oil related products (BP, Royal Dutch Shell, Equinor). Therefore, the earnings for these stocks are potentially higher and more enduring than is currently factored into the price.

Our equity book continues to look nothing like the broader indices and the opportunity that presents excites us.

A note of caution

There are two quotes which keep wandering through our minds.

The first is from nineteenth century titan Lord Rothschild to "buy on the cannons and sell on the trumpets".

One of the great ironies about investing is that the best time to invest in risky assets is when everything seems utterly bleak, like March 2020. A more dangerous time to invest is when everything is going well and it seems obvious. At the end of June 2021, the US market completed seven consecutive days of new all time highs, a feat not completed since the dot.com bubble. 

The second quote is Robert Louis Stevenson's accidentally sage investment advice when he acknowledged sometimes "it is better to travel hopefully, than arrive".

Just as the Coinbase IPO marked the recent top in bitcoin, perhaps 'freedom day' will mark the top in markets? That would be delightfully paradoxical. The truth is nobody knows, but we believe caution is warranted.

The Ruffer portfolio was flat when the market was down 30% at the March 2020 lows, we preserved capital in the crisis, and we have made around a 30% return since then. Since November 2020 markets have been pricing in a recovery and re-opening which has yet to fully materialise. There are clearly bubbles of exuberance in the economy and markets, trumpets if you will, that urge prudence and caution.

There is a battle of competing forces. On the one hand we have a spring of economic momentum, government and central bank support for markets and this is all underwritten by a sense that investors earning nothing on cash have no alternative but to invest.

On the other hand, ponder an economy drowning in debt unevenly staggering out of a huge recession with the looming threat of inflation because of a cocktail of supply chain bottlenecks, reduced capacity and trillions of stimulus. And that cocktail, if served up, will be negative for all asset markets.

Summary

Our key points are as follows

We have transitioned into a new economic regime of higher inflation and volatility

Conventional bonds no longer have a useful portfolio role

We are prepared with a broad toolkit of assets to protect against inflation and financial repression 

After a huge recovery, some parts of the markets are showing signs of froth and caution is warranted

What we try to do at Ruffer is build an all-weather portfolio. One that offers our investors the antidote to bubbles and hysteria. We have forged our reputation by making money in the three major bear markets since the firm began in 1995 - dot.com, the financial crisis and then the covid crash.

When we see bubbles forming, our approach has always been to eschew the mania and try to find the assets people will panic into when the bubble pops. We owned no tech stocks in 2000 and we owned no banks or property stocks in 2008.

Sometimes what you do not own is just as important as what you do own and that's why being totally un-benchmarked and being truly multi-asset, go-anywhere global investors is so important as we pursue our capital preservation objective.

 

Portfolio statement

as at 30 June 2021 (unaudited)

 

 

Currency

Holdingat

30 June 21

Fair
value £

% of total

netassets

Government bonds 34.27%

 

 

 

 

(30 Jun 20: 35.78%)

 

 

 

 

Non-UK index-linked bonds

 

 

 

 

Japanese index linkedbond10/03/2026

JPY

350,000,000

2,360,535

0.41

Japanese index linkedbond10/03/2027

JPY

350,000,000

2,373,286

0.41

Japanese index linkedbond10/03/2028

JPY

350,000,000

2,356,737

0.41

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

USD

18,000,000

14,652,159

2.55

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

USD

24,100,000

19,799,732

3.44

Total non-UK index-linked bonds

 

 

41,542,449

7.22

Long-dated index-linked gilts

 

 

 

 

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

GBP

6,050,000

19,488,142

3.38

UK index-linked gilt0.125%22/11/2065

GBP

8,100,000

24,153,776

4.20

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

GBP

9,100,000

30,557,016

5.31

Total long-dated index-linked gilts

 

 

74,198,934

12.89

Short-dated index-linked gilts

 

 

 

 

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

GBP

20,500,000

32,385,876

5.62

Total short-dated index-linked gilts

 

 

32,385,876

5.62

Short-dated bonds

 

 

 

 

UK gilt 3.75% 07/09/2021

GBP

26,000,000

26,176,020

4.55

US Treasury floating rate bond 31/10/2021

USD

11,000,000

7,960,943

1.38

UK index-linked gilt 0.125% 31/01/2023

GBP

15,000,000

15,014,850

2.61

Total short-dated bonds

 

 

49,151,813

8.54

Total government bonds

 

 

197,279,072

34.27

Equities 41.39%

 

 

 

 

(30 Jun 20: 29.93%)

 

 

 

 

Europe

 

 

 

 

Aena SME

EUR

26,000

3,079,798

0.54

Banco Santander

EUR

1,850,000

5,105,061

0.89

Bank of Ireland Group

EUR

800,000

3,097,283

0.54

Europcar Mobility Group

EUR

8,500,000

3,473,729

0.60

Equinor

NOK

260,000

3,979,231

0.69

Fresenius Medical Care

EUR

50,000

3,006,771

0.52

Koninkliijke Vopak

EUR

60,000

1,969,144

0.34

 

 

 

Currency

Holdingat

30 June 21

Fair
value £

% of total

netassets

Unicredito

EUR

360,000

3,069,272

0.53

Vinci

EUR

22,000

1,696,717

0.30

Volkswagen

EUR

9,000

1,628,439

0.28

Yara International

NOK

75,000

2,855,775

0.50

Total Europe equities

 

 

32,961,220

5.73

United Kingdom

 

 

 

 

Bae Systems

GBP

400,000

2,088,000

0.36

Barclays

GBP

2,200,000

3,764,640

0.65

Belvoir Lettings

GBP

500,000

1,200,000

0.21

BP

GBP

3,500,000

11,025,000

1.91

Breedon Group

GBP

1,200,000

1,293,600

0.22

BT Group

GBP

1,300,000

2,521,350

0.44

Countryside Properties

GBP

1,050,206

4,963,274

0.86

Glaxosmithkline

GBP

500,000

7,097,000

1.23

Glencore International

GBP

1,000,000

3,094,000

0.54

Grit Real Estate

GBP

1,626,850

715,814

0.12

Hipgnosis Songs Fund

GBP

1,400,000

1,702,400

0.30

Lloyds Banking Group

GBP

31,776,800

14,836,588

2.58

Marks & Spencer Group

GBP

1,200,000

1,757,400

0.31

Melrose Industries

GBP

1,600,000

2,480,000

0.43

Natwest Group

GBP

4,509,790

9,159,383

1.59

PRS Real Estate Investment Trust

GBP

1,350,000

1,377,000

0.24

Renn Universal Growth Trust

GBP

937,500

0

0.00

Royal Dutch Shell B

GBP

800,000

11,192,000

1.94

Ruffer SICAV UK Mid & Smaller Companies Fund*

GBP

73,147

21,563,627

3.74

Taylor Maritime Investments

GBP

3,600,000

2,736,000

0.48

Tesco

GBP

3,050,000

6,798,450

1.18

Trident Royalties

GBP

4,117,647

1,523,529

0.26

Tufton Oceanic Assets

USD

3,348,400

2,759,870

0.48

Total UK equities

 

 

115,648,925

20.07

 

 

 

Currency

Holdingat

30 June 21

Fair
value £

% of total

netassets

North America

 

 

 

 

Alexion Pharmaceuticals

USD

29,000

3,850,452

0.67

American Express

USD

15,000

1,792,061

0.31

Bristol Myers Squibb CVR

USD

144,000

6,953,771

1.21

Cabot Oil & Gas

USD

150,000

1,893,572

0.33

Centene

USD

140,000

7,379,076

1.28

Chesapeake Energy

USD

70,000

2,626,202

0.46

Cigna

USD

38,000

6,513,383

1.13

Ehealth

USD

60,000

2,533,439

0.44

General Motors

USD

56,000

2,395,720

0.42

Northrop Grumman

USD

7,000

1,838,999

0.32

Total North America equities

 

 

37,776,675

6.57

Japan

 

 

 

 

Central Glass

JPY

13,000

179,700

0.03

Dena

JPY

28,600

438,895

0.08

Fuji Electric

JPY

65,000

2,191,258

0.38

Fuji Media

JPY

34,600

277,870

0.05

Fujitec

JPY

18,900

302,954

0.05

Fujitsu

JPY

24,000

3,241,787

0.56

Japan Petroleum Exploration

JPY

10,800

140,293

0.02

Kato Sangyo

JPY

17,900

393,750

0.07

Koito Manufacturing

JPY

6,500

291,886

0.05

Mitsubishi Electric

JPY

280,000

2,938,382

0.51

Mitsubishi Heavy Industries

JPY

100,000

2,127,480

0.37

NEC

JPY

78,000

2,903,629

0.50

Nippo

JPY

13,500

277,633

0.05

Nippon Seiki

JPY

35,500

273,777

0.05

Nippon Television

JPY

22,300

186,491

0.03

Nissan Shatai

JPY

55,800

260,378

0.05

Nomura Real Estate

JPY

250,000

4,583,289

0.80

Orix

JPY

370,000

4,512,548

0.78

Rakuten Group

JPY

320,000

2,609,465

0.45

 

 

 

 

Currency

Holdingat

30 June 21

Fair
value £

% of total

netassets

Sekisui Jushi

JPY

8,800

120,784

0.02

Shin-Etsu Polymer

JPY

33,100

221,017

0.04

Sony

JPY

37,000

2,600,614

0.45

Sumitomo Mitsui Financial Group

JPY

220,000

5,483,678

0.95

Tachi-S

JPY

43,200

417,785

0.07

Teikoku Sen-I

JPY

26,900

366,239

0.06

Toagosei

JPY

31,600

231,978

0.04

Toei Animation

JPY

6,500

555,852

0.10

Toei

JPY

2,000

270,084

0.05

Token

JPY

4,400

290,363

0.05

Tokio Marine

JPY

77,000

2,559,718

0.44

Tokyo Broadcasting System

JPY

17,400

193,187

0.03

Toppan Forms

JPY

26,800

188,718

0.03

Torii Pharmaceutical

JPY

9,700

153,338

0.03

Toyota

JPY

5,100

318,966

0.06

TS Tech

JPY

20,000

223,226

0.04

TV Asahi

JPY

15,900

182,121

0.03

Total Japan equities

 

 

42,509,133

7.37

Asia (ex-Japan)

 

 

 

 

Weiss Korea Opportunity Fund

GBP

800,000

2,144,000

0.37

Wilmar International

SGD

600,000

1,451,223

0.25

Total Asia (ex-Japan) equities

 

 

3,595,223

0.62

Other equities

 

 

 

 

Ambev

USD

2,400,000

5,951,847

1.03

Total other equities

 

 

5,951,847

1.03

Total equities

 

 

238,443,023

41.39

Gold and gold equities 6.62%

 

 

 

 

(30 Jun 20: 11.61%)

 

 

 

 

AngloGold Ashanti

USD

120,000,000

1,612,031

0.27

IAmGold

USD

1,200,000

2,550,792

0.44

Ishares Physical Gold

USD

220,000

5,480,912

0.95

Kinross Gold

USD

1,060,000

4,866,604

0.85

LF Ruffer Gold Fund*

GBP

7,676,617

21,602,768

3.75

Wheaton Precious Metals

USD

65,000

2,070,638

0.36

Total gold and gold equities

 

 

38,183,745

6.62

 

 

 

Currency

Holdingat

30 June 21

Fair
value £

% of total

netassets

Credit protection and options 7.46%

 

 

 

 

(30 Jun 20: 12.97%)

 

 

 

 

Ruffer Illiquid Multi Strategies Fund 2015*

GBP

29,930,171

24,456,899

4.25

Ruffer Protection Strategies International*

GBP

5,935,102

18,488,436

3.21

Total credit protection and options

 

 

42,945,335

7.46

Total investments

 

 

516,851,175

89.74

Cash and other net current assets

 

 

59,061,833

10.26

 

 

 

575,913,008

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 Global Smaller Companies Fund are also classed as related parties as their investment manager (Ruffer LLP) is the parent of the Company's Investment Manager.

 

 

Appendix

Regulatory performance data

To 31 Dec %

†2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

RIC NAV TR

8.9

14.0

0.1

6.0

23.8

15.1

16.5

0.7

3.4

9.5

FTSE All-Share TR

12.3

22.0

16.8

5.3

-29.9

30.1

14.5

-3.5

12.3

20.8

Twice UK Bank Rate

9.9

9.4

11.0

11.2

3.4

1.0

1.0

1.0

9.9

1.0

 

 

 

 

 

 

 

 

 

 

 

 

2014

2015

2016

2017

2018

2019

2020

2021

 

Annualised

 

1.8

-1.0

12.4

1.6

-6.0

8.4

13.5

8.3

 

7.9

 

1.2

1.0

16.8

13.1

-9.5

19.2

-9.8

12.3

 

7.5

 

1.0

1.0

1.0

0.5

1.0

1.5

0.5

0.1

 

3.8

 

† From July 2004

‡ To June 2021

Source: Ruffer, Thomson Datastream, FTSE International (FTSE)†. 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. Ruffer LLP is authorised and regulated by the Financial Conduct Authority.

This document, and any statements accompanying it, are for information only and are not intended to be legally binding. Unless otherwise agreed in writing, our investment management agreement, in the form entered into, constitutes the entire agreement between Ruffer and its clients, and supersedes all previous assurances, warranties and representations, whether written or oral, relating to the services which Ruffer provides.

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.

 

 

 

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