LF Ruffer Total Return C

A predominantly long only, unconstrained approach to investing with a focus on capital preservation. Investment is mainly via conventional asset classes.

  • 335.49p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 518.42p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.20%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.23%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 15 January 2021

This fund invests internationally, primarily in equities, commodities and bonds (including index linked), and has an absolute return objective. The managers have met the target since launch in September 2000 but the fund's long only approach means negative absolute returns are still possible. The fund is run alongside the London-listed Ruffer Investment Company with which it has 90/95% commonality.

Fund summary

Sector Mixed Investment 20-60% Shares
Structure OEIC
Launched September, 2012
Size £3,454m
Yield 0.80%
Charging basis Capital
Dividends paid 15 May, 15 Sep

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.20%
Ongoing charges figure 1.23%

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Investment process

The fund invests internationally in conventional asset classes, principally listed equities, corporate and government bonds (generally index-linked). The portfolio may also invest in commodities, equity put options and other specialist tail-risk strategies. Other Ruffer funds and external funds are sometimes used for exposure to specialist areas and asset classes. Currency hedging may also be undertaken. The portfolio is split between “fear” assets designed to preserve capital, and “greed” assets designed to provide growth, with the balance between the two dependant on Ruffer’s view of the economic / market landscape. Ruffer describes itself as “agnostic” on market direction, so the portfolio will always include an element of both. Stock selection is split between ideas derived from the top-down view and from 'bottom up' analyst input.

Ruffer have long had a reputation for astute asset allocation / portfolio construction, and for many years this delivered the steady returns targeted by this fund. More recently they have been increasingly focused on the fragility of the global economic environment and what this might mean for asset prices. Against this backdrop their returns have been somewhat frustratingly low, in part given their greater focus on value investing across their equity book. However, the more recent market environment has seen their tail-risk strategies and gold investment theme move to the fore, insulating investors from the market drawdowns associated with the pandemic crisis.

Manager research

Average monthly relative returns

  • 16/17 0.07%
  • 17/18 -0.51%
  • 18/19 -0.13%
  • 19/20 -0.33%
  • 20/21 1.07%

Bestinvest MRI

  • 3 years 0.20%
  • 5 years 0.03%
  • Career 0.13%
  • 3 years 78.20%
  • 5 years 68.40%
  • Career 93.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Steve Russell / David Ballance

Russell started his career as a research analyst at SLC Asset Management in 1987, ultimately becoming their Head of Equities in charge of £5bn of equity funds. In 1999 he moved to HSBC Investment Bank as Head of UK and European Equity Strategy. He joined Ruffer in September 2003 where he is an investment director. Ballance joined Rufer in 2006. He was previously International Equities Head at Rothschild Private Management, prior to which he was European Equities Head at Rothschild Asset Management. He graduated from Oxford and worked for Allied Dunbar Asset Management as Senior Investment Manager before moving to Threadneedle Investment Managers as Head of European Equities.

Track record

Steve Russell / David Ballance has 14.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.13%. During the worst period of relative performance (from January 2009 - January 2020) there was a decline of 23% relative to the index. The worst absolute loss has been 9%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 94%.

Periods of worst performance

Absolute -9.00% (May 2015 - January 2016)
Relative -23.00% (January 2009 - January 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2020

4.7% Uk Treasury Index-Linked 0.125% 2068
3.3% United States Of Amer Treas Bills 0.875% Tb 15/01/29 Usd100
3.2% Hm Treasury United Kingdom Dmo 1.25% Idx-Lkd Gilt 22/11/55 Gbp0.01
3% Hm Treasury United Kingdom Dmo 8% Gilt 2021
2.9% United States Of Amer Treas Bills 0.25% Tb 15/07/29 Usd100
Source: Trustnet

Key Investor Information - Income

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Key Investor Information - Accumulation

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