Ruffer Investment delivers absolute returns

The trust targets a positive total annual return in any 12 month period after all expenses of at least twice the Bank of England Base Rate. Ruffer, which also looks after individual investment accounts, takes the same approach when investing with its public funds as it does for its private clients. It seeks to do this in all market conditions - and has largely achieved this.

Ruffer focuses on preserving capital, conducts its own research, actively manages investments and aims to generate consistent, sustainable and positive returns without the restrictions that come from following benchmarks. Ruffer says cash is the true benchmark because it involves no hazarding of capital and no fees. Ruffer is very focused on consistent returns and not losing money.

The investment trust invests in equities and bonds, as well as some alternative assets such as gold and the managers continue to think that a large holding in Japanese equities will turn out well.

Ruffer Investment Company is co-managed by Ruffer chief executive and founder Jonathan Ruffer, who has managed money since 1980, and Steve Russell who is also co-manager of the CF Ruffer Total Return Fund.

However, Ruffer's ability to deliver the returns it promises has not escaped the notice of investors and the trust trades at a premium to net asset value.

Source: Investors Chronicle, *Ruffer, **Morningstar.

Performance data as at 6 December 2010.

TOP TEN HOLDINGS as at 29 October 2010

Asset Allocation