Ruffer Investment Company (RICA) fund managers pounced on five-year UK government bonds last month, lifting their allocation to 15% as exaggerated fears of interest rate rises in response to the inflationary impact of higher oil prices from the war in the Middle East caused a sell-off in gilts that left their yields “inappropriately high”. Ruffer managers Jasmine Yeo, Ian Rees and Alexander Chartres said in their March factsheet: “The UK is not currently being well run. Even so, it’s unlikely to deliver interest rate hikes in response to a shock that seems set to slow an already weakening economy.” The defensive multi-asset fund ended the month with 54% in bonds up from 47.5% in February. Net asset value (NAV) fell 1.8% as falls in shares and bonds exceeded the gains on credit and volatility protections alongside exposure to oil and energy equities. The shares were steady however, up 0.8%, as their discount to NAV narrowed to 1% from a one-year average of 3.3%. NAV rose 2.4% in the first quarter with the shares up 5%.
Biotech Growth (BIOG) saw net asset value (NAV) rise 2.5% in March, beating the 1.5% decline in the Nasdaq Biotechnology index, which OrbiMed fund manager Geoff Hsu said highlighted the resilience of the portfolio in a month dominated by the US-led war on Iran. Apellis Pharmaceuticals was the biggest contributor after it accepted a $5.6bn bid from Biogen, alongside gains in Relmada Therapeutics and CG Oncology. BIOG’s NAV has soared 73% in the past year, underpinning a 67.1% advance in the shares, which stand on 10% discount to the portfolio.
Pershing Square Holdings (PSH) fund manager Pershing Square Capital Management has formally launched US initial public offerings (IPO) in New York for its new Pershing Square USA fund (PSUS) and Pershing Square Inc (PS) parent company. PSUS is looking to raise at least $5bn, which includes a $2.8bn private placement, from the issue at $50 a share. Investors in PSUS will receive one PS share for every five PSUS shares bought in the IPO. The new fund will be run on similar lines to PSH and should benefit holders of the London-listed investment company managed by Bill Ackman with a reduced performance fee equal to 20% of its management fee. Last week Ackman launched a £48bn bid to buy Universal Music Group and relist it in the US.
Schroder European Real Estate (SERE) shares have slid 4.3%, or 2.6p, to 58.3p today after the £80m company reported a 0.7%, or €1.4m, decline in its €192.6m portfolio in the last quarter of 2025. Lease renewals and extension at its Rumilly logistics hub and Stuttgart office generated respective gains of €2m (19%) and €1.1m (6%) but were offset by big falls in its Alkmaar industrial estate and Cannes car showroom. Alkmaar’s valuation fell by €3.2m, or 31%, after the sole tenant hit financial difficulties and ceased operations. The Cannes property fell by €0.9m, or 13%, due to shortening lease terms and increased capital expenditure assumptions following the sole tenant’s notice to quit in September this year.
Partners Group Private Equity (PEY) posted a fourth successive monthly decline in February with the portfolio declining 0.5% to €858.8m with net asset value (NAV) per share of €12.63 per share. The portfolio slipped 0.7% largely due to falls in the US-listed shares of child care group KinderCare and India supermarket Vishal Mega Mart despite both businesses’ strong fundamentals, PEY said. These were partly offset by a 0.4% boost from currency movements and an uplift to the valuation of Rosen Group, the Swiss energy infrastructure support services specialist. PEY also received €22.2m from the sale of property and casualty insurer Convex Group to Onex and AIG. The shares added 2.5% to €9, slightly narrowing their wide discount that stood at 31% last night. Last month the company reported an 8.7% fall in 2025 had been largely caused by the weak dollar against the euro.
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