Jonathan Ruffer notes 'down year' despite AUM and profits jump

investmentweek.co.uk:

Jonathan Ruffer described the domination of the Magnificent Seven in indices as an 'accident waiting to happen'.

In the year to 31 March 2023, Ruffer's assets under management jumped 12% to £25.1bn, up from £22.5bn in 2022, according to accounts published on Companies House. 

Pre-tax profits rose 7% from £128.6m to £138.6m, with £95m available for discretionary division among the partnership's members, who received £40.4m in remuneration during the period, up from £29.2m in the previous year.

At the end of December 2023, however, the firm's AUM stood at £23.7bn, as performance in its flagship strategies took a hit due to market moves. 

Ruffer cuts bond and equities exposure after 'complacent' market rally

In his letter to investors, founder Jonathan Ruffer described 2023 as a «down year».

He explained: «Too many of the things which were meant to go down went up, and a few — only a few — of the things that were meant to go up went down».

The firm's £2.6bn WS Ruffer Total Return fell 8.2% over the last 12 months, compared to a 3.6% gain for the IA Mixed Investment 20-60% Shares sector over the same period, according to data from FE fundinfo.

Ruffer Investment Company's share price fell 12.3% in the same period, while its net asset value dropped 8.3%, according to data from the Association of Investment Companies. By comparison, the Flexible Investment AIC sector's share price was down 3.2%, while its NAV was up 1.3%.

Ruffer boosts portfolio duration in October after US Treasury rout

In August, the trust was forced to make its first share buyback in its near 20-year history, after its NAV fell from a consistent premium to a discount over the summer. At the time of writing, Ruffer's discount to NAV sits at 4.6%.

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