Ruffer launches Ruffer Diversified Return Fund

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Ruffer has launched the LF Ruffer Diversified Return Fund (RDRF), a daily liquidity version of its flagship GBP4 billion LF Ruffer Total Return Fund. 

The new fund will adopt the same investment approach as Ruffer’s existing four core funds, which aim to generate absolute returns with an uncorrelated risk/return profile to the broader markets.

Ruffer’s existing Total Return Fund has delivered an annual return of 8.4 per cent and the company has become well known for successfully navigating periods of market volatility, most notably the last three major bear markets: the Covid Crisis, the GFC and the Dot.Com crash.

The new fund, Ruffer’s first in the UK for 10 years, meets investors’ demand for better liquidity while affording protection against the risk of rising inflation and higher market volatility in the future.

The strategy will be managed by investment directors Duncan MacInnes, who will combine his role on the new fund with his role as co-manager of the Ruffer Investment Company, and Ian Rees. The fund will be available through all of the major investment platforms with the first NAV scheduled for the 15 September.

Duncan MacInnes at Ruffer, commenting on the fund launch, says: “Global financial markets face an uncertain future which creates major challenges for investors. Traditional asset allocation models will come under renewed stress as inflation volatility rises. By providing a more liquid expression of our investment strategy we can help support UK financial planners, wealth managers and the broader wholesale market with our ‘all weather’ uncorrelated investment approach.

“We believe we are entering a world in which bond and equity prices look poised to fall in tandem. In this environment true diversification and a lack of correlation to other asset classes or strategies will be absolutely vital to portfolio construction – this is where we believe the Ruffer approach can be of use to investors.”