Ruffer Investment Co Ltd on Friday said it faced a challenging October, as it was not ‘immune’ to turbulence in both bond and equity markets.

The London-based investment management company recorded a 1.3% decline in net asset value and a 1.6% drop in share price for October. However, it achieved a 2.3% NAV growth year-to-date and a 6.1% return over the past year.

Ruffer‘s NAV per share in October was 287.05 pence, reflecting a 4.2% increase from 275.46p a year ago.

Ruffer said that bond markets had their worst performance since September 2022, pressured by stronger US economic data, which reduced hopes for rapid rate cuts in 2025.

Equities also struggled, with Chinese stocks dragging the portfolio due to dollar strength, weak domestic stimulus, and fears of renewed trade tensions under a Trump presidency.

The fund adjusted its portfolio by increasing precious metals’ exposure to 2% in silver and 1% in platinum, aiming to capitalise on their gold exposure. It also trimmed Chinese equities but noted their undervaluation and potential upside with improved domestic stimulus.

Ruffer reported a 12-month total return of minus 5.8% to September 30, 2023, compared to a 13.8% gain by the FTSE All-Share Total Return Index during the same period.

The fund’s NAV has delivered an annualized return of 6.9% since inception, with a five-year annualized return of 5.4%.

Ruffer has experienced a maximum drawdown of 9.6% since inception and reports a sharpe ratio of 0.8. Its current market capitalization is £968.1 million, with a discount to NAV of 4.7%.

Ruffer shares were 0.3% up at 271.25 pence in London on Friday morning.

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