Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Ruffer slashes Japan to 15% as protection finally pays off

Ruffer slashes Japan to 15% as protection finally pays off

The managers of the £332 million Ruffer investment trust have thanked their defensive positions, which weighed on performance last year, for protecting them from January’s sell-off.

Last month the FTSE All Share index lost 3.1%, but Ruffer slipped by only 1.5% on a net asset value basis and actually rose by 2.4% in share price terms.

Ruffer achieved this through positive returns from US dollar exposure, index-linked bonds and gold.

‘The protective assets have largely done their job and those investments which were holding us back last year earned their keep,’ said managers Hamish Baillie and Steve Russell (pictured) in an update to investors.

In 2013 Ruffer's share price gained 7.3% while its net asset value rose 9.5% compared with the 20.8% surge in the FTSE All Share.

Baillie and Russell also revealed they had acted during January to make their portfolio more defensive. In particular, they reduced Japanese equity exposure - which stood at 22% in the middle of 2013 - by an additional 2% 15% and added to their holdings of long-dated US index-linked bonds.

The Ruffer duo has also ‘tentatively dipped a foot back into gold miners’ on the view the gold price is being supported by the weakness of emerging market currencies.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Steve Russell
Steve Russell
15/41 in Mixed Assets - Absolute Return GBP (Performance over 3 years) Average Total Return: 13.79%
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter