Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Ruffer to make 'greed' assets sweat as 2012 goes down as no vintage year

1 comment
Ruffer to make 'greed' assets sweat as 2012 goes down as no vintage year

The team behind the popular Ruffer Investment Company (RIC) has vowed to make its ‘greed assets’ work harder after a challenging 2012.

Despite getting an end of year boost from a change in leadership in Japan, Steve Russell and Hamish Baillie admitted the £282 million fund had made 'painfully slow progress' over the past 12 months.

While the pair shrewdly hedged their exposure to the yen ahead of Shinzo Abe’s landslide election win and the subsequent collapse in Japan's currency, Ruffer paid dear for protection at a time when safety came with an unusually high price tag.

‘It was a year when protection was not required,’ Russell (pictured) and Baillie confessed.

While the performance of RIC’s risk, or 'greed’ assets had been palatable, with western equities contributing some 3% and Japanese stocks adding around 5%, RIC was left not just counting the cost of missed opportunity but the price of protection as it sought shelter for shareholders funds.

‘2012 will not go down in the Ruffer annals as "un grand millésime" for performance. Over the last five years we have managed to capture a good deal of the rise in markets and protect investors from the falls. However, in 2012 we made painfully slow progress when conditions appeared to be benign,’ Russell and Baillie said, as they looked for a route to better returns in 2013.

But rather than adding huge levels of risk to their portfolio, the managers of the Citywire Selection fund vowed to make key assets work harder while using index linked bonds to protect against central bankers’ decision to underwrite deflationary risks.

They said: ‘Our answer is to ensure the greed assets sweat harder rather than increasing the level of risk in the portfolio.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter