Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a581382

Ruffer: how safe is our portfolio?

by Dylan Lobo on Apr 11, 2012 at 08:09

Central bank policy is also causing Ruffer some concern in an investment landscape it describes as being ‘more complicated’ than last year.  While its index linkers have provided its portfolio with protection despite there being no evidence of a general rise in inflationary worries, Ruffer is still very conscious of the deflationary threat.

‘We are faced with powerful deflationary forces brought about by the financial crisis and hence the effects of deleveraging and austerity, but all the world’s major central banks have chosen to fight this battle with their own inflationary forces  – liquidity injections, ultra-low interest rates and money printing,’ Baillie and Russell said.

‘Recently, central bankers have been in the ascendency not least through the European LTRO (long-term refinancing) operation, but the patient still appears to be dependent on the life support and, with any hint at that support being removed, the market gets the jitters.’

However, ultimately the pair believe central banks will continue to pump money into the system to avert deflation.

'[However] what we know is that the deflationary forces are a finite thing (how much can the economy contract?) whereas the troops at the disposal of central banks are infinite and will persevere as long as they continue to be deployed.'

Over the last 12 months RIC has been successful in its mission, returning 3.3% versus a 0.44% rise in the FTSE World index. The trust is currently on a 3.9% premium.

Sign in / register to view full article on one page

2 comments so far. Why not have your say?

Brian Stafford Garthwaite

Apr 14, 2012 at 19:34

Does anyone really KNOW what is going to happen, we are in uncharted water.

I have funds invested with both Ruffer and Personal Assets and find it very reassuring that they are being so open and honest about the present situation. My money will remain invested with them and I shall probably add to these funds in the near future,they both have an excellent track record.

report this

SL

Apr 16, 2012 at 09:12

I agree wtih Brian - I have used Ruffer and Trojan and appreciate their honest comments - rather than the usual fund managers who are always optimistic..

report this

leave a comment

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

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

The Citywire guide to investment trusts

Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Trojan O Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the investment trusts

  • Ruffer Investment Company (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Steve Russell
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Sebastian Lyon
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet