Ruffer syas that over the six months from 1 July 2014 to 31 December 2014, the net asset value per share of the Company rose by +3.9% after allowing for the dividend of 1.7p paid during the period. The Company’s share price performed better still (+6.8%) as the shares moved from a discount to a premium. The target return of twice the Bank of England base rate rose 0.5% over the period and by way of context the FTSE Allshare total return index fell by 0.4%.
The statement says that in the last 6 months the best performing assets in the Company’s portfolio have been long-dated index-linked gilts, US dollar exposure (which is partly made up of US equities which also posted positive returns) and options. Japanese equities made a positive contribution allowing for their currency hedge; the yen weakened by 7% against sterling over the last 6 months.
The index-linked gilts did well, even though inflation fell, as long-term rates continued to fall.
RICA : Ruffer benefits from index-linked gilt exposure