Ruffer is to launch its first UK fund in more than a decade which is says combats the risk of bond and equity prices falling in tandem.
The LF Ruffer Diversified Return fund is a daily liquidity version of its flagship £4bn LF Ruffer Total Return fund. It is set to be launched on 16 September.
The investment process is the same as Ruffer’s four existing funds which aim to generate absolute returns with an uncorrelated risk/return profile to broader markets.
In a press release, Ruffer said the new strategy will offer investors better liquidity while protecting against the risk of rising inflation and higher market volatility.
The strategy will be managed by investment directors Duncan MacInnes (pictured) and Ian Rees. MacInnes will continue to manage the Ruffer Investment Company alongside the new strategy.
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MacInnes said the uncertainty in global financial markets creates major challenges for investors and rising inflation volatility is likely to place traditional asset allocation models will come under renewed stress.
“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,” he added.
“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.”
According to FE Trustnet, the LF Ruffer Total Return fund has returned 12.7%, 22.8% and 24.3% over one, three and five years, respectively, compared with the IA Mixed Investment 20-60% Shares sector’s 13.8%, 17.9% and 27.8%.
