All-weather
investors seeking
to deliver consistent
positive returns
Ruffer Investment
Company Limited
Annual Report for the
year ended 30 June 2025
Ruffer Investment Company Limited | Annual Report 2025
Contents About us
Visit us online
ruffer.co.uk/ric
Overview
About us IFC
Financial highlights 1
Key performance indicators 2
Long-term performance 3
Strategic report
Chair’s statement 6
Investment Manager’s report 12
Top ten holdings 38
Ruffer’s approach to responsible investment 39
Business review 46
Section 172 and stakeholder engagement 55
Governance report
Board of Directors 58
Directors’ report 60
Corporate governance statement 64
Directors’ remuneration report 72
Audit and Risk Committee report 74
Management Engagement Committee report 78
Depositary report 80
Financial Statements
Independent Auditor’s report to
the members of the Company 82
Statement of financial position 88
Statement of comprehensive income 89
Statement of changes in equity 90
Statement of cash flows 91
Notes to the Financial Statements 92
Additional information (unaudited)
Portfolio statement 117
General information 125
Management and administration 126
Appendix 127
Keeping you invested,
whatever the weather
Ruffer Investment Company Limited has a simple
but unusual aim – to generate consistent positive
returns, however financial markets are performing.
We define this formally with the objective to achieve a positive total annual
return, after all expenses, of at least twice the Bank of England base rate.
Through good markets and bad, our priority is protecting our clients’ money.
By putting safety first, we seek to deliver solid performance that can build
the value of your investment over the long term.
To do this, we need the courage to stand apart from the crowd, to challenge
the consensus and invest in ways others can’t or won’t.
Financial highlights
as at 30 June 2025
Market capitalisation
2
Number of shares in issue
NAV at year end as reported
to the LSE
NAV per share as calculated
on an IFRS basis
1
Share price
NAV at year end as calculated
on an IFRS basis
1
NAV per share as reported
to the LSE
£858.18m 302.18m
£891.59m
293.93p
284.00p
295.06p
£888.20m
2024: £968.22m 2024: 357.94m
2024: £1,019.43m
2024: 284.89p
2024: 270.50p 2024: £1,019.74m
2024: 284.81p
1 These are the NAV and NAV per share as per the
Financial Statements. Refer to note 14 on page 101
for a reconciliation between this figure and the
NAV/NAV per share as reported to the LSE
2 See appendix for alternative performance
measures (APMs)
1
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Key performance indicators
as at 30 June 2025
Share price total return
1
over 12 months
2
%
NAV total return per share
1
over 12 months
2,3
%
Discount
1
of share price
to NAV per share
3
%
Dividends per share
over 12 months
4
(p)
Annualised dividend yield
5
%
Annualised NAV total return
pershare from launch
1
%
Ongoing charges ratio
6
over 12 months %
1 See appendix for alternative performance
measures (APMs)
2 Assumes reinvestment of dividends
3 Using NAV per share as calculated on an IFRS
basis. The KPI of NAV total return per share
was previously calculated on the basis of NAVs
published on the LSE. The NAV total return per
share for the year based on LSE NAVs was 5.7%
(2024: 1.0%)
4 Dividends declared during the year
5 Annual dividend yield is calculated using share
price at the year end and dividends declared
during the year
6 See note 9 on pages 97 to 98
-0.6
1.4
7.3
2.1
-3.4
6.8
5.95
1.07
3.65
1.06
5.3
1.4
-5.0
6.9
2024 2024
2024
2024
20242024
2024
2025 2025
2025
2025
20252025
2025
2
Ruffer Investment Company Limited
Annual Report 2025
Long-term performance
as at 30 June 2025
Annualised NAV per share total return
and share price total return compared
to the Company’s objective
1
Performance over 12 months % Performance over three year period %
Performance over five year period % Performance over ten year period % Performance since inception %
NAV TR
2,4,5
NAV TR
2,4,5
NAV TR
4,5,6
NAV TR
2,4,5
NAV TR
2,4,5
Share
price TR
3,4,5
Share
price TR
3,4,5
Share
price TR
3,4,5
Share
price TR
3,4,5
Share
price TR
3,4,5
Twice
Bank Rate
1
Twice
Bank Rate
1
Twice
Bank Rate
1
Twice
Bank Rate
1
Twice
Bank Rate
1
5.3
4.3
5.1
6.8
1.6
9.8
3.2
5.4
3.9
8.8
7.3
3.7
4.6
6.5
-0.4
1 The Company's objective is to achieve a positive return, after all expenses,
of at least twice the Bank of England base rate
2 NAV per share total return using NAV per share as published on the LSE
3 Share price total return
4 Assumes reinvestment of dividends
5 See Appendix for alternative performance measures
6 NAV per share total return using NAV per share calculated on an IFRS basis
3
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Strategic
report
What’s in this section?
Chair’s statement 6
Investment Manager’s report 12
Top ten holdings 38
Ruffer’s approach to responsible investment 39
Business review 46
Section 172 and stakeholder engagement 55
4
Ruffer Investment Company Limited
Annual Report 2025
What sets us apart
Keeping you
invested, whatever
the weather
Through good markets and bad, our
priority is protecting our clients’ money.
By prioritising protection, we seek to deliver solid performance
that can build the value of your investment over the long term.
To do this, we need the courage to stand apart from the crowd,
to challenge the consensus and invest in ways others can’t or won’t.
Find out more
ruffer.co.uk/ric
5
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
The past year re-affirmed that RICL can
combine owning ‘shock resistance with
satisfactory returns in the meantime’.
The Board continues to have confidence
that RICL has an important role to play
in investors’ portfolios during these
uncertain times.
Nicholas Pink
Chair
Chair’s statement
6
Ruffer Investment Company Limited
Annual Report 2025
NAV total returns versus volatility
July 2004 to June 2025
0
0
2
4
6
8
642 8
Twice Bank Rate
FTSE World Govt Bond
FTSE All-Share
Ruffer Investment Company
10
Volatility (annualised)
NAV TR (annualised)
12 14
Source: Morningstar, Ruffer, data July 2004 to June 2025. Constituents Ruffer Investment Company, RIT Capital Partners, Capital Gearing, Personal Assets, BH Macro, Twice Bank
Rate, FTSE All-Share, FTSE World Government Bond Index. BH Macro data is from 2007. Volatility is not a complete measure of risk but provides a basis forcomparison
Key performance indicators (KPIs)
The Company has seven KPIs, which are detailed on page 2 of the
Annual Report.
Investment performance in the financial year 2024/2025
was a classic game of two halves. The second half saw strong
performance, offsetting broadly flat performance in the first six
months. NAV TR over the 12 months to 30 June 2025 was +5.3%.
The discount of the share price to NAV per share narrowed to 3.4%
at 30 June 2025 (from 5.0% at 30 June 2024); consequently, the
share price total return over the same period was higher at +7.3%.
The Company’s performance therefore met the aim to generate
consistent positive returns, however financial markets are
performing, but fell slightly short of the Company’s objective of
twice the Bank of England base rate (9.8% in 2024/2025).
The Board carefully evaluates the performance of the
Investment Manager over a range of time periods. While one-year
performance improved, Ruffer’s performance over the past
three-year period is below the Company’s objective. However,
the Board strongly believes that the investment industry’s
focus on such short time periods doesn’t allow for a manager’s
capabilities to be fully reflected.
Over the past five years, the Investment Manager’s performance
has broadly matched the Company’s objective; and over ten years,
Ruffer has exceeded the objective of twice the Bank of England
base rate. Over the entire 21 years since inception to 30 June 2025,
the Company has delivered annualised NAV TR per share of 6.8%,
exceeding the objective of 3.9%. This has been achieved with lower
volatility than equities and bonds, as shown in the chart above.
The Company’s annualised dividend yield on 30 June 2025 was
2.1%, an increase from 1.4% at the end of the previous financial
year, due to higher revenue from the portfolio.
Despite the reduction in the Company’s size due to substantial
share buybacks, which more than offset gains from investments,
the ongoing cost ratio remained stable at 1.07% (1.06% in the
2023/2024 financial year). The Board has carefully evaluated
both the management fee and other costs and believes they
are competitive.
Investment performance
In recent Annual and Interim Reports, the Investment Manager
argued that markets were discounting a goldilocks scenario for US
bonds and equities and warned that this was too complacent given
the risks. The Investment Manager forecast three potential paths
ahead: a continued US-led equity rally, a significant equity market
sell-off, or a rotation within markets. Markets in 2024/2025 were
so volatile as investors held all three views at different times.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
The outstanding aspect of RICL’s performance in the past year has
been the ability to achieve positive returns amidst such diverse
market regimes while retaining the necessary protection to offset
market falls. This was achieved by Ruffer through a combination
of three factors:
First, asset allocation has been dynamic, with careful optimisation
of the allocation to equities, short-term bonds, commodities
and inflation-linked bonds. For example, the gross allocation to
equities has varied between 23% and 35% but the net allocation
after accounting for derivative positions has fluctuated between 0%
and 48%.
Second, long-held contrarian positions in unloved ‘ugly duckling’
assets have been rewarded. For example, China equities, UK
equities and the yen have all delivered positive returns.
Third, unconventional assets held to protect the portfolio against
market downturns have paid off during equity market sell-offs in
August 2024 and April 2025. This helped RICL achieve positive
NAV returns during these market squalls.
One aspect of RICL’s portfolio that continues to attract questions
from shareholders is the Company’s trading of derivatives and
ownership of specialist third-party hedge funds which typically use
credit and derivatives. A financial derivative is a contract between
two parties that derives its value from an underlying asset, such
as stocks, bonds, commodities or currencies. It is essentially a
play on the future price movement of the underlying asset. While
derivatives have become increasingly common in the investment
company sector as an alternative to bank debt, Ruffer typically
uses them – along with funds – not just for hedging against risks,
but also to profit from price movements and to amplify gains with
relatively small investments. Examples of their use in the past year
have included options to benefit from spikes in equity volatility,
options to benefit from both rises and falls in equity price levels and
ownership of funds which benefit in market sell-offs. The trading
is undertaken directly by Ruffer’s dedicated protection team or via
investment in funds managed by specialist third-party managers.
Risk is overseen by Ruffer’s risk team. Although Ruffer has used
derivatives since 2008, it is by no means axiomatic that it does
so. However, in a period in which bond-equity correlations are
positive, bonds may not offer insurance against equity market falls
and unconventional protection via derivatives may be needed to
help the Company to meet its objective. The closed-ended status of
RICL is an ideal structure to own strategies such as the third-party
funds, given their illiquidity. These strategies are also a source of
differentiation for retail shareholders, as they are typically only
available to larger clients at a higher cost.
Although in individual periods the attribution from derivatives and
third-party funds may be positive or negative, the Board believes
the way to assess their success is via the Company’s NAV TR, as all
activity is conducted as part of overall asset allocation to achieve
the Company’s objective.
More detail about investment performance can be found in the
Investment Manager’s report on pages 12 to 37.
Fund managers
Alex Chartres and Ian Rees joined Jasmine Yeo as joint fund
managers of the portfolio, following Duncan MacInnes’s departure
in February 2025. Management of the portfolio is unchanged
in operational terms, with close collaboration between the fund
managers and the Chief Investment Officer, including regular
updates to the Board. The fund managers have also maintained
strong relationships with the Company’s largest shareholders.
Jonathan Ruffer, Chairman of Ruffer LLP, announced his
retirement on 30 September 2025. He was Founder and Chief
Executive of Ruffer LLP (1994-2012), and Investment Manager
of RICL (2004-2012). Henry Maxey takes over as Chairman on
1 January 2026, retaining his role as co-CIO. Whilst Jonathan has
not had day-to-day involvement in RICL for a decade, his wisdom
and contrarian thinking are hallmarks of the firm he founded.
The Board thanks Jonathan for his distinguished service and
wishes him well in his retirement.
Earnings and dividends
The Company’s earnings per share of 12.61p for the 12 months
to 30 June 2025 was split between 5.78p of revenue and 6.83p of
capital (2.69p in 2023/2024, split 5.48p of revenue and capital
losses of 2.79p). The Company continues to invest for total return,
which gives the Investment Manager the flexibility to own any asset
consistent with achieving the Company’s objective. Consequently,
revenue is not the primary goal but rather a by-product of the
investment portfolio.
The Board is committed to distributing at least 85% of revenue
earned in any given year. Having paid an interim dividend of
2.85p in April 2025 (2.0p in 2023/2024), the Company has
declared a second interim dividend of 3.35p on 1 October 2025
(3.1p in 2023/2024). The dividend will be paid on 24 October
2025. The remaining balance of revenue earned has been retained
to add to the revenue reserve (£18.3 million or 6.1p per share at
30 June 2025), which may be used, where the Board believes it
appropriate, to cushion dividends against future fluctuations in
revenue per share.
8
Ruffer Investment Company Limited
Annual Report 2025
What sets us apart
First, we protect,
then we grow
The fund has two goals: to protect
your money and to generate a
reliable return over the long term.
Avoiding big market falls is key. If your portfolio loses 50%
of its value, you need to gain 100% to get to back to where
you started. So, the fund can give you comfort at times when
other parts of your broader portfolio are suffering.
Find out more
ruffer.co.uk/ric
9
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Discount/premium management
In 2024/2025 the RICL share price traded at a discount to NAV per
share for the third consecutive year. The Board believes that in the
long run, the solution to the current discount is better investment
performance via NAV TR. In the short run, the Board will take
action to enhance shareholder value and manage the difference
between the share price and NAV per share. The Board has taken
successively stronger measures over the past two years with the
volume of the share buyback increasing significantly.
The Board’s discount policy is, around a mid-single digit discount, to
assess with the Broker the market position in the shares: who are the
sellers and buyers and what are their reasons; what are the volumes
which are moving the share price significantly relative to the average
liquidity levels; where are and what constitutes potential buyers and
at what price level. The Investment Manager is not apprised of this
discussion because of potential conflict of interest.
The Board makes its own independent judgement on whether it
deems the discount to be a temporary aberration or a longer-term
signal for which action other than a share buyback may be required.
The objective of the buyback and other measures is to make money
for remaining shareholders by adding to the NAV per share, to
bring the share price closer to the NAV per share and to help
provide liquidity in the shares.
The policy has resulted in the buyback of 55.8 million shares at a
cost of £153.5m in the 12 months to 30 June 2025, representing
15.6% of the share capital at the beginning of the period. The
buyback occurred at an average discount of 4.72% and has
enhanced NAV per share by 2.51p or 0.8%. Since 30 June 2025, the
Company has bought back a further 5.4 million shares or 1.8% of
the Company’s shares in issue on 30 June 2025. Measured in terms
of aggregate spend, the Company buyback is one of the largest in
the investment company sector in the past year.
The Board is committed to retaining the tools necessary to
implement this policy. If the future rate of share buyback means
that the buyback authority granted at the 2024 AGM is fully
utilised before the next AGM in December 2025, the Board will
seek shareholder approval for a renewal ahead of the AGM. In
addition, the Board revised its Articles at the 2024 AGM to allow
for the operation of a tender mechanism at any time it chooses, if
the Board determines it to be necessary.
Marketing
At the end of 2024, Ruffer launched a marketing strategy for RICL’s
direct-to-consumer shareholders. Retail shareholders, who own
a significant proportion (c.30%) of the Company directly or via
investment platforms, are the primary focus of this strategy.
The first results of this strategy included a revised website for
RICL, organised meetings between the fund managers and the
financial press and platform buy-side analysts, direct advertising
in relevant finance publications, and plans to write to shareholders
on investment platforms directly and invite them to sign up for
updates from the Investment Manager. Additionally, the 2024/2025
Annual Report has been redesigned.
You will have noticed the introduction of QR codes on both
the monthly fund report and Interim/Annual Reports. These
codes allow shareholders to sign up for updates directly from
the Investment Manager, including a quarterly newsletter,
investment updates, webinars and podcasts. If you’ve not already
signed up but would like to do so, please scan the QR code located
in this Annual Report.
To fund these initiatives, Ruffer has contributed an enhanced
marketing budget for 2025, and the Company is funding the cost
of communicating with shareholders directly. The Board closely
monitors the success of these activities using various metrics.
Responsible investing
Ruffer is committed to being a good steward of its client assets,
and to do that and generate investment performance, it analyses
environmental, social and governance (ESG) issues for both
equities and bonds, including climate risk. These factors are
considered both a source of value and investment risk. Ruffer
implements this by integrating ESG analysis into the investment
process. Ruffer engages directly with companies to gather
information and achieve change on ESG issues, and votes at
investee company meetings. Ruffer will typically engage with a
company rather than implement exclusions from the portfolio,
although if engagements fail it may divest from a company. These
stewardship activities are conducted by the responsible investment
and investment teams working collaboratively. Ruffer publishes
its responsible investment policy, an annual Stewardship report to
comply with the UK Stewardship code and its annual voting record.
10
Ruffer Investment Company Limited
Annual Report 2025
It also produces an annual Task Force on Climate-related Financial
Disclosures (TCFD) report to comply with FCA requirements.
To achieve its aims, including collaboration with other investment
managers, Ruffer is a signatory or supporter of various industry
initiatives such as the UK Stewardship Code, Principles for
Responsible Investment, The Institutional Investors Group on
Climate Change and its Climate 100+ initiative.
The Board shares Ruffer’s view that integration of ESG factors into
the investment process helps make better investment decisions.
Ruffer reports on voting and engagement with companies at every
Board meeting and the Board meets the responsible investment
team at the annual ‘kick the tyres’ strategy day to monitor
implementation of the policy.
More detail about Ruffer’s responsible investment policy can be
found in the Ruffer responsible investment report on pages 39 to 44
of the Annual Report.
Board matters
As detailed in the Interim Report, Chris Russell retired as Chair in
December 2024 and the Board reverted to five Directors. The Board
has a range of relevant experience, whilst also meeting all the
relevant diversity criteria for a London-listed investment company.
In Spring 2025, the Board performed its annual evaluation of its
effectiveness. The internal review concluded that the Board was
operating effectively. Improvements implemented since the review
include more Director-only meetings and more detailed budgeting
for other costs. The Board remains committed to conducting an
external review of Board effectiveness triennially, with the next
external review scheduled for 2027.
During September 2025, the Board conducted its annual ‘kick
the tyres’ session. The Board met with Ruffer senior management
and the fund managers to conduct due diligence on matters
including investment strategy and asset allocation, investment
risk, protection strategies, responsible investment and RICL’s
marketing strategy.
Annual General Meeting (AGM)
The AGM will be held on 4 December 2025, at the office
of Apex Fund and Corporate Services (Guernsey) Limited
(the ‘Administrator’ or ‘Apex’) at 1 Royal Plaza, Royal Avenue,
St Peter Port, Guernsey at noon. Shareholders are invited to attend.
The Board encourages all shareholders to exercise their votes by
completing and submitting the proxy election form in advance of
the meeting.
Any questions should be submitted via email to the Company
Secretary at ruffercosec@apexgroup.com. Recognising that some
shareholders will be unable to attend the AGM in person, a separate
opportunity for shareholders to meet some of the Board members
and receive a presentation from the Investment Manager will be
provided on 26 November 2025 at Ruffer’s London office. To receive
an invitation, please sign up for shareholder updates by using the
QR code as provided in the Annual Report.
Outlook
In his 1921 classic Risk, Uncertainty and Profit, the economist
Frank Knight argued that it is difficult to forecast uncertainty,
whereas risk has known probabilities.
This distinction remains relevant today as markets grapple with the
implications of Trump 2.0. US tariffs, one example of uncertainty,
are set to be the highest for nearly 100 years, making forecasting
complex. Another example would be any threat to the independence
of the US Federal Reserve, a common feature in emerging markets
but near unprecedented in developed markets. The difficulty in
judging whether these are threats or more grist to TACO (‘Trump
always chickens out’) makes pricing the impact on markets very
challenging. Evidence of the market fuddle is that both the S&P
500 and gold trade near record highs, one a sign of risk appetite,
the other a sign of risk aversion.
There is undoubtedly an upside case for global equities but it is
a more difficult one given US equity valuations are priced for
perfection. Investors would therefore be wise to consider what
insurance to own against uncertainty. To compound the problem,
since 2022 the bond-equity correlation has reverted to positive
from negative, implying equity and bond prices will rise and fall
together rather than hedge each other. Typical bond hedges may
not provide the insurance to equity risk that have worked for the
previous 20 years during the ‘Pax 60:40’ era. As a result, the case
for RICL’s ownership of unconventional protections holds up for a
period of ‘Knightian uncertainty’.
The past year re-affirmed that RICL can combine owning
‘shock-resistance with satisfactory returns in the meantime’.
1
The Board continues to have confidence that RICL has an
important role to play in investors’ portfolios during these
uncertain times.
Nicholas Pink
30 September 2025
1 Jonathan Ruffer, Investment Review 2025
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Philosophy and approach
Investment philosophy
Ruffer Investment Company (the ‘Company’) follows the
Ruffer philosophy and strategy, which have remained
unchanged since Ruffer started in 1994. Our aim is
simple but unusual – to generate consistent positive
returns, however financial markets are performing.
Through good markets and bad, our priority is
protecting our shareholders’ money.
Investment Manager’s report
as at 30 June 2025
12
Ruffer Investment Company Limited
Annual Report 2025
We define this formally with the objective to achieve a positive
total annual return, after all expenses, of at least twice the Bank
of England base rate. In essence, our goals are two-fold. To protect
your money, and to generate a reliable return over the long term.
Since its launch in 2004, the Company’s approach has
successfully delivered positive returns with a low correlation
to equities and other asset classes. Most notably, we preserved
shareholder capital during the global financial crisis, the covid-19
pandemic, and the 2022 interest rate shock. This year, we again
demonstrated resilience by delivering a positive return amid
tariff-induced volatility – when US bonds, equities and the
US dollar all fell in tandem.
These results reflect a philosophy focused on capital preservation
and a disciplined, differentiated investment approach.
Investment approach
At Ruffer, we think differently about risk. Our investment approach
starts with managing the risk of losing money, identifying assets
that can protect against major market risks and potential regime
changes, no matter where we are in the cycle. By putting protection
in place ahead of time, we’re able to remain opportunistic during
benign markets and well-positioned to take on risk during or after
market downturns.
In an ideal world, one could rotate perfectly between growth and
protective assets – selling at the top and buying at the trough.
But nobody can determine exactly when these points will be.
Market downturns often arrive unexpectedly, from seemingly
calm conditions rather than storm clouds.
To remove the need for market timing, the Company’s portfolio
always maintains a balance between ‘protection’ and ‘growth’
assets. The balance shifts, depending on our views and conviction
at any given time.
We conduct our own independent research, actively manage the
underlying holdings and invest without the constraint of market
benchmarks. The portfolio typically includes equities, fixed income,
commodities, precious metals exposure, currencies, derivatives
and alternative assets – though the composition and weighting
of each will vary based on our outlook.
We aim to protect your
money and generate
a reliable return over
the long term
Rather than rely on historic correlations between asset classes,
we consider a broad range of future scenarios and position the
portfolio accordingly. Our forward-looking, qualitative assessments
of markets are supported by quantitative analysis and stress testing
to identify and address vulnerabilities in the portfolio.
When constructed correctly, the result is an all-weather portfolio
– one that aims to preserve capital during periods of market stress.
For investors, this means the Company can act as a source of
stability and reassurance when other parts of a broader portfolio
may be under pressure.
Long-term performance
Over 30 years, the Ruffer strategy has delivered an annualised
return of 7.9%, after all fees and charges. Just as importantly,
it has provided meaningful protection and diversification during
periods of market stress as illustrated in the chart overleaf.
Ruffer’s successful track record stems from our ability to identify
major inflection points in financial markets and protect portfolios
through them. During investment regime change, asset class
correlations often shift. Equities and bonds may fall in tandem.
In these moments, investors need genuine diversification: assets
that can behave differently, even to deliver a negative correlation
to both equities and bonds under stress.
13
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Long-term performance
100
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
300
200
700
600
1,000
800
1,100
900
500
400
1,200
8.2% pa
7.3% pa
7.9% pa
6.1% pa
Ruffer FTSE All-Share Total Return Twice Bank RateRuffer Investment Company
dot.com bust Credit crisis Covid-19 crisis Rate rises
Source: Ruffer, RAIFM Ltd, FTSE International, Bloomberg, MSCI, WM. Cumulative performance 30 June 1995 to 30 June 2025, in pounds sterling. Performance data is
included in the appendix. All figures include reinvested income. All mentions of Ruffer performance refer to Ruffer’s representative portfolio, which is an unconstrained
segregated portfolio following Ruffer’s investment approach. Ruffer performance is shown after deduction of all fees and management charges. Calendar quarter
datahasbeen used up to the latest quarter end and monthly data thereafter. Moreinformation: ruffer.co.uk/methodology. Please note the Ruffer Investment Company
lineand annualised performance figure uses Ruffer performance pre the launch of Ruffer Investment Company on 7 July 2004 and Ruffer Investment Company
performancethereafter
The chart opposite shows the rolling two
year correlation of the Ruffer portfolio
versus the FTSE All-Share Index. Typically,
the Ruffer portfolio shows a positive
correlation to equity markets in benign
conditions. However, during periods of
market stress, this correlation tends to
fall – often turning sharply negative –
providing the kind of diversification our
investors rely on when it matters most.
Correlation falls during market stress
0
1997 2001 2005 2009 2013 2017 2021 2025
300
700
600
400
200
100
800
500
900
Ruffer versus FTSE All-Share TR, rolling two year correlation, rhsFTSE All-Share TR
-1.0
-0.8
-0.6
-0.4
-0.2
0
0.2
0.6
0.8
0.4
1.0
Source: FTSE Russell, Ruffer calculations, based on quarterly performance data from 30 June 1997 to
30June2025
14
Ruffer Investment Company Limited
Annual Report 2025
Performance review
Performance in NAV and price terms
100
140
120
160
200
240
280
320
220
260
180
300
-8%
2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
-4%
0%
4%
8%
-2%
2%
-6%
6%
+5%
-5%
-3.4%
DiscountPremiumNAVShare price
Source: Ruffer Investment Company data 7 July 2004 to 30 June 2025
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Overview
Premium and discount over time
70
2004 2006 2008 2010 2012 2014 2017 2019 2021 2023
2025
100
190
130
220
250
280
310
160
340
NAV Share price
Source: Ruffer Investment Company data 7 July 2004 to 30 June 2025
Premium/discount
The Board has been deliberate in its use of buybacks to manage
the discount. Over the last 12 months the Board has purchased
approximately 56 million shares for a total of around £153 million.
This equates to around 16% of the shares outstanding as of
30 June 2024. Similarly, over the six months to 30 June 2025,
the Board purchased approximately 31 million shares for a total
of around £85 million. Over the past year, the Company has
had one of the most significant capital return policies in the
industry. Purchasing its own shares at a discount to NAV enhances
NAV per share for ongoing shareholders and offers liquidity to
departing shareholders.
Recent performance
The year under review was a tale of two halves. In the latter
half of 2024, global markets were once again led higher by US
exceptionalism – a narrative that was turbocharged after Donald
Trump’s election victory. Importantly, though, we maintained our
defensive posture in the face of what we felt was complacency and
over-optimism in US equity and credit markets.
So, although 2024 ended on a disappointing note with flat NAV
total return performance in the six months to 31 December 2024,
we were well positioned for what followed, as Trump’s inauguration
forced investors to move beyond pricing only the positives and
begin confronting the realities of the new administration.
The first half of 2025 witnessed three distinct market
environments: in the first six weeks of the year, a benign rotation
in equity markets away from the US to Europe and China; a market
sell-off from mid-February that was exacerbated by President
Trump’s reciprocal tariff announcements; and then a relief rally
across equity and bond markets from late April onwards, due
to the tariffs pause and geopolitical risks remaining contained.
Encouragingly, the portfolio performed positively through each
of these phases, as demonstrated by the chart overleaf.
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Ruffer Investment Company Limited
Annual Report 2025
Key drivers of performance (six months)
Equity
upside
Conventional
protection
Unconventional
protection
Commodities
and precious
metals exposure
2.1
-2.6
2.8-0.9
0.2 0.0 0.2
0.2 0.8
0.8 0.90.8
Rotation (Jan-Feb) +3.3% Sell-off (Mar-Apr) +1.1% Rally (May-Jun) +1.7%
Source: Ruffer Investment Company 31 December 2024 to 30 June 2025. Returns in local currency and gross of fees so will not total actual performance
During the market rotation away from the US, the portfolio’s
European, Chinese and commodity equity exposure was helpful,
alongside the yen, gold and precious metals exposure. In the market
sell-off, the portfolio demonstrated resilience, with the protective
assets – especially the portfolio’s derivatives – delivering positive
returns. Of equal importance was the subsequent market rally,
where the portfolio also delivered positive returns, highlighting
that, whilst defensive, it remains able to participate in benign
market environments.
As a result, the portfolio had a strong second half of the reporting
period with a NAV total return performance of 5.8%. Amid
continually shifting market winds, this gives us confidence the
portfolio is well placed to achieve its investment aims.
Whilst global equities ultimately performed well over the
period, this masks some important shifts underneath the
surface. The US administration’s tariff policy heightens both
upside inflation risks and downside growth risks. Meanwhile,
the economic nationalism agenda poses a potential threat to
the foundations of US exceptionalism. Traditional asset class
correlations are breaking down: both the dollar and bonds have
so far failed to provide investors with protection in 2025.
At the time of writing, risks are rising, yet valuations are once
again elevated. The S&P 500 index is back trading at 22 times one
year forward earnings, a level that suggests the market is priced,
if not for perfection, for very little bad news. We have positioned
the portfolio to hopefully deliver genuinely differentiated
performance, seeking to protect from further market falls whilst
also capitalising on the opportunities presented in benign markets.
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Overview
Attribution
Key drivers of performance (12 months)
Equity upside
Gold and precious
metals exposure
Cash and
short-dated bonds
Commodities
exposure
Other
currencies
Long-dated
inflation-linked bonds
Yen
US dollar
Protection
strategies
5.1
1.7
1.5
0.5
0.3
0.1
-0.3
-0.4
-2.5
Source: Ruffer Investment Company 30 June 2024 to 30 June 2025. Returns in
local currency and gross of fees so will not total actual performance
Factors that helped performance
Equity upside The resurgence of Chinese equities, driven by
stimulus efforts and DeepSeek’s disruption of the US monopoly
in AI, attracted global investor interest. Meanwhile, fiscal reforms
in Europe boosted confidence in European markets, diminishing
the relative appeal of US assets. This shift fuelled a rotation into
the undervalued markets of Europe and China, which drove strong
equity gains for the portfolio over the past year. Standouts included
Alibaba (+58%), Prudential (+30%) and ArcelorMittal (+28%).
Gold and precious metals exposure Precious metals delivered
strong performance over the past 12 months, as investors sought
safe-haven assets amid persistent inflation, rising geopolitical
tensions and growing concerns around fiscal sustainability
– particularly in the US. More recently, a weaker US dollar has
provided a further boost to the asset class. In this supportive
environment, the portfolio’s allocation to gold mining equities –
held primarily via the WS Ruffer Gold Fund – delivered a standout
return of over 43%. Holdings in silver (+22%) and platinum bullion
(+32%) also made meaningful contributions to performance.
Factors that hurt performance
Protection strategies Overall, a rising equity market meant that
the portfolio’s protective assets detracted from performance.
However, they played a vital role when it mattered most –
in August 2024 and April 2025.
– August 2024 Amid rising geopolitical tensions, a strengthening
yen and softer US jobs data, volatility surged with fear
indexes (including the VIX), rising as much as 180% intraday.
Thanks to our protections, we not only weathered the storm –
we delivered positive returns during one of the most turbulent
weeks of the year.
– April 2025 This was the fifth most volatile month for US equities
since 1928, shaken by Trump’s unexpected ‘Liberation Day’
reciprocal tariff announcements. This triggered the fifth-largest
two-day drop in over 50 years. Even traditional safe havens like
the US dollar and US Treasuries fell sharply. In this challenging
environment, the portfolio’s protective strategies proved
their worth.
US dollar The portfolio has limited US dollar exposure. For years,
it benefited from the so-called ‘dollar smile’, strengthening in both
risk-on and risk-off environments. That pattern appears to be
breaking down. During the tariff-driven sell-off from 2 to 9 April,
the US dollar provided no support; in fact, an index that tracks its
performance against a basket of currencies has declined in excess
of 10% since January – its worst first six months for any year since
1973. Our exposure marginally detracted from performance over
the year, reinforcing the value of maintaining diversified protections
through derivatives, credit and yen exposure in the portfolio.
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Annual Report 2025
What sets us apart
Built differently,
to help you outperform
The fund has an unusual mix of
investments – some to protect against falls,
others to capture growth opportunities.
The aim is to deliver positive returns when more conventional
investment strategies typically can’t. This makes it a valuable
way to help navigate unpredictable markets – and keep your
investment plans on track.
Find out more at
ruffer.co.uk/ric
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Annual Report 2025
Overview
Portfolio changes
The chart below highlights changes in the asset allocation over the last 12 months. We’ve outlined the drivers behind any moves exceeding ±2%,
excluding cash and sterling, which are residuals of other portfolio activity.
Current portfolio structure
Source: Ruffer Investment Company as at 30 June 2025
Inflation
June 2024
%
June 2025
%
Change
%
Gold and precious metals exposure 7.5 7.8 +0.3
Long-dated UK inflation-linked bonds 4.6 4.7 +0.1
Short-dated UK inflation-linked bonds 2.7 0.9 -1.8
Long-dated non-UK inflation-linked bonds 11.9 0.2 -11.7
Protection
Short‑dated nominal bonds 32.4 41.0 +8.6
Credit and derivative strategies 12.7 12.4 -0.3
Cash 1.5 4.4 +2.9
Long-dated nominal bonds — 1.7 +1.7
Growth
UK equities 11.2 10.6 -0.6
Europe equities 3.7 5.5 +1.8
North America equities 3.7 4.4 +0.7
Asia ex-Japan equities 4.6 2.5 -2.1
Japan equities — 2.1 +2.1
Other equities 1.0 0.6 -0.4
Commodity exposure 2.5 1.2 -1.3
Currency allocation
Sterling 87.4 81.3 -6.1
Yen 9.7 14.8 +5.1
Euro — 1.4 +1.4
US dollar — 0.9 +0.9
Other 2.9 1.7 -1.2
Ruffer Investment Company. Data in GBP as at 30 June 2025. Totals may not equal 100% due to rounding.
Thegreen shading indicates significant portfolio changes which are discussed in more detail on page 21.
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Annual Report 2025
Long-dated non-UK inflation-linked bond exposure
We continue to believe that real duration can act as a valuable
protection against structural inflation regime change, hence
retaining the position in long-dated UK inflation-linked bonds.
In addition, we actively managed our bond exposure as a tool for
delivering tactical returns. Over the year we flexed our allocation
to US inflation-linked bonds (TIPS), buying as real yields rose
sharply – when bonds became cheaper – exiting as yields fell and
prices recovered. Our successful trades in August 2024 and Q1
2025 reflects the role we think fixed income now plays in portfolios
as a tool for delivering tactical returns, rather than as a reliable
offset to equities.
Short-dated nominal bonds and yen exposure
We took advantage of the strength in the yen in August 2024
by monetising some of the portfolio’s yen call options, and
adding to the yen cash exposure via short-dated nominal bonds
in Japan. Although this bout of strength was short-lived, we
maintain conviction and continue to hold the yen for its protective
characteristics as it typically appreciates sharply in response
to market stress.
Credit and derivative strategies
Whilst in aggregate the allocation is unchanged, we actively
managed the profits across our protective positions in August
2024 and April 2025. During August we monetised a portion of
the portfolio’s protection as volatility spiked. Similarly, in the
tariff-induced sell-off, we focused on trimming the volatility
protection and equity index puts, taking profits.
We have also been opportunistic in adding to our protection
strategies. As volatility and the cost of protection have fallen,
we have taken advantage, increasing the portfolio’s volatility
and credit protection at various moments throughout the year.
For example, in January 2025, when volatility collapsed (the VIX
index moved from 22 to 15), we took the opportunity to add to the
portfolio’s VIX call options. These protections proved critical in
the subsequent ‘Liberation Day’ sell-off.
Asia ex-Japan equities
China’s equity market surged nearly 40% from its September
trough to its early October peak. We took profits from across
the portfolio’s 5.3% allocation. Q1 2025 saw further strong
performance, with Alibaba leading the charge. We took further
profits and resized the stock position to approximately 1%.
Japan equities
We increased our exposure to Japanese equities in January 2025,
targeting companies well positioned to benefit from Japan’s
governance reforms. The country is undergoing a wave of corporate
transformation, with shareholder activism up 74% since 2018,
driven largely by investors demanding greater transparency
and capital efficiency. These changes are beginning to unlock
meaningful value, as companies focus on improving capital
allocation and making better use of assets. This position also has
a portfolio role as a partial offset to our yen exposure, given many
of the companies we own are beneficiaries of a weaker currency.
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Annual Report 2025
Overview
Investment outlook
In this year’s outlook, we examine the two structural forces driving
regime change in investment markets: inflation volatility and the
potential waning of US exceptionalism. As we will discuss, these
dynamics have far-reaching consequences for portfolios and
traditional diversification.
Evolving regime change
A year ago, we were confident that one key conventional portfolio
assumption was under threat – the bond/equity correlation.
Now we see two, because the US dollar has also shown itself
to be unreliable.
The chart below shows the performance of US equities (orange),
long-dated US bonds (blue) and US dollar (green) over the last four
years, back to late 2021 when we think this regime change really
got underway with the rise of inflation. We’ve highlighted the two
periods of significant equity drawdowns over that period – in 2022
and in April this year.
As we know, in 2022 bonds failed to protect against equity losses
(the blue and orange line going down together), and interest rate
volatility has been elevated since. The Company’s portfolio was able
to deliver positive returns thanks to our unconventional assets.
In contrast, strategies that relied solely on conventional
diversification struggled – even those with significant US dollar
exposure, which performed well that year (the green line rising).
In April 2025, however, all three lines moved down the page.
Not only did bonds fail to protect, but so did the US dollar.
In the first half of 2025, the only safe haven to have worked in 2022
suffered its worst first half year since 1973, falling by more than
10% against a basket of currencies.
It serves as another warning shot to investors to reappraise their
approach to diversification. And, at the time of writing, with equity
indices once again at all-time highs, they’re being offered another
chance to prepare.
Inflation regime change
First, it’s worth recapping our structural observations around
inflation. We believe the low inflation, low interest rate, low
volatility environment investors have enjoyed in recent decades
is giving way to a new, more unstable regime. In short, 2% is now
the floor for inflation, rather than the ceiling. And that signals a
meaningful change because, for the three decades up to late 2021,
we have not had to worry about anything north of 2%.
Bonds and dollar fell with stocks during recent market stress
50
Dec 21 Apr 22 Aug 22 Dec 22 Apr 23 Aug 23 Dec 23 Apr 24 Aug 24 Dec 24 Apr 25
60
100
90
130
110
140
120
80
70
150
US equitiesUS dollar US long-dated bonds
Equities down,
no protection from bonds
Equities down, no protection
from bonds or US dollar
Source: Bloomberg, SPX, Bloomberg US treasury 20+ year index, DXY. Data 31 December 2021 to 30 June 2025
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The previous regime was driven by a series of disinflationary
tailwinds. Primarily
– China opening to the world stage and the collapse of the
Soviet Union which delivered major positive supply shocks
to the global economy by adding cheap labour and resources
– a political backdrop supportive of free trade and globalisation
– technology that allowed businesses to capitalise on
global integration
– favourable demographics that ensured a record-high ratio of
workers to elderly dependants, flattering welfare state finances.
Now, the drivers of this multi-decade period of integration and
disinflation are breaking down. Replacing them is a fragmenting
world order marked by rolling negative supply shocks. This shift
is encouraging greater government intervention, with increased
expenditure required for rearmament, ageing populations, the
energy transition, crumbling infrastructure, and managing the
impact of the technological revolution in AI. At the same time,
spending cuts remain politically unpalatable. These dynamics
were accelerated by the pandemic and are now increasingly
visible in a Trump 2.0 world.
We don’t know where inflation will get to, or exactly where it’s
going. But we do know that it tends to come in waves.
The chart below shows the US Consumer Price Index (CPI)
over three different periods: the 1940s, the 1970s and the 2020s.
The x axis shows a ten year period: the 24 months before the peak
in inflation, and the following 96 months.
Why is inflation wavy? Firstly, the conditions that lay the
groundwork for inflation don’t fade after just one surge. Inflationary
pressures build over time, and the breakdown of the disinflationary
tailwinds of the last regime is well underway. Secondly, the policies
and the appetite to curb inflation don’t appear after just one
episode. Interest rates must usually be hiked – and stay tight –
through some economic and market pain. For this to be politically
palatable, people must hate the pain of inflation more than they
hate the pain of higher interest rates.
So inflation has a tendency for resurgence. And the current US
president has made it very clear he would like to see lower interest
rates, despite persistent inflationary pressures.
We are not suggesting inflation will reach the levels seen in 2022,
nor that we are returning to the 1970s. But we are saying there is
an underpriced risk that this is not ‘one and done’.
Inflation comes in waves
-5%
-24 -12 0 12 24 36 48 60 84
96
72
0%
10%
5%
15%
20%
1940s 2020s1970s
Source: US Bureau of Labor Statistics. US CPI year-on-year percentage change. Bottom axis shows months before and after first inflationary peak. Data to May 2025
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Overview
This age of disruption and changing world order is set against a
backdrop of deep and expanding government deficits that show
no sign of slowing. Developed economies are running record high
peacetime deficits – despite low unemployment. In the US, nearly
one fifth of tax revenues are now spent on interest payments
alone, exceeding the entire defence budget. But what happens if
unemployment rises? Historically, budget deficits have widened
by around 4% during downturns.
This creates inherent fragilities. Structural headwinds are
making the economy more prone to inflation, just as the scale
of government borrowing is making it more sensitive to higher
interest rates. The result is a financial system that is less tolerant
of both inflation and the policy tools needed to control it.
This matters because inflation alters the relationships between the
core building blocks of conventional portfolios. When three year
average core inflation exceeds just 2.5%, bonds and equities begin
to show a positive correlation. It doesn’t take double-digit inflation
to pose a challenge – just a modest overshoot of central bank
targets can be enough.
Whilst this shift presents a significant change for most of today’s
investors, it is actually a return to the historical norm. The chart
below shows the correlation between US stocks and bonds back to
1900. Periods of positive correlation – when both assets move in
the same direction – have been more common than not. The real
anomaly has been the past few decades, during which bonds (and
other duration assets) consistently acted as reliable offsets to
equity drawdowns.
The turning point was 2022, when most assets held for
diversification proved highly sensitive to rising interest rates
– exposing the fragility of portfolios reliant on established
assumptions.
To be clear, since 2022, aside from the initial period of disruption,
this shift has benefited conventional portfolios, as both major asset
classes rose together over 2023 and 2024. The real concern, of
course, is if this correlated rise reverses.
The stock bond correlation remains positive
-0.9
1900 1910 1920 1931 1941 1951 1962 1972 1982 1993 2003 2013 2024
-0.1
-0.3
-0.5
0.3
0.1
0.5
-0.7
0.7
Source: Global Financial Data. Ruffer. Rolling two year correlation. Data 31 January 1900 to June 2025
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Annual Report 2025
Here’s another way of viewing it. This chart
shows US dollar performance in US equity
market corrections of more than 10% (over
the last 15 years), with the US dollar in
green and the S&P 500 in orange. Every
single time the S&P 500 goes down, US
dollar goes up. Except this year. Is that just
a blip? Or the start of a structural change?
Dollar in distress
65
Apr 10 Dec 15Aug 15Jul 11 Jan 18 Oct 18 Feb 20 Jan 22 Mar 22 Jun 22 Feb 25Jul 23Aug 22
70
100
75
105
80
85
90
95
110
Trade weighted dollar S&P 500
Source: CLSA, Bloomberg
US exceptionalism
The relationship between bonds and equities was not the only generous feature of the market structure in recent decades. The US dollar too,
offered foreign holders of US assets valuable hedging properties.
Given the policy goals and the unpredictability of Trump 2.0, however, the US dollar may also now be a less reliable source of protection
for investors.
The chart below again shows the US bond/equity correlation in orange. You can see the negative correlation again from the late 1990s, and then
a decisive shift as it moves sharply positive in 2022. In green is the correlation of US dollar with US equities, which was helpfully negative for a
prolonged period. But you can see that start to tick up this year. Is there a risk the green line follows the orange?
Five year rolling bond/equity correlation versus US dollar/equity correlation
-0.8
1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021 2025
0
-0.2
-0.4
0.2
0.4
-0.6
0.6
USD and S&P US bonds and S&P
Source: Bloomberg, data January 1969 to 30 June 2025
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Annual Report 2025
Overview
We think it is likely to persist, for several reasons.
For a long time, the US has been truly exceptional. Here we see its earnings per share (EPS) outperformance relative to the rest of the world.
Exceptional or euphoric?
MSCI US versus MSCI world ex-US, relative returns and earnings
50
100
250
150
300
200
350
325
275
225
175
125
75
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
Relative EPS (=exceptionalism)
Relative return (=euphoria)
Source: Minack Advisors, relative returns are in US dollar, relative EPS is one year ahead forecast, indexed at 100 in 2010. EPS indices adjusted for share count change
implied by reinvested dividends. Shaded areas are NBER-defined US recessions. Data to June 2025
This exceptionalism is grounded in real sources of relative
advantage: tech leadership, energy independence, relatively
favourable demographics versus other major economies,
continental scale. That saw EPS outperformance (in orange) justify
return outperformance (in green) – you can see the two lines rising
together, initially closely tracking each other.
However, since the pandemic, the green line has diverged
dramatically from the orange. Relative returns have exceeded the
relative EPS, suggesting a euphoric rise in US stocks rather than
just exceptional earnings.
More recently this divergence can be explained by extreme
fiscal policy in the US, which has been a huge driver of growth.
The chart overleaf plots G7 government deficits versus real GDP
growth. The more governments spent, the better the growth.
Equity markets have reflected that too, with the US doing
phenomenally well.
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Annual Report 2025
But Trump has now forced a material fiscal expansion in Europe
on rearmament and infrastructure, and China has also been
stimulating, albeit more incrementally. The US is still spending
big, but what matters to markets is the marginal change – the
fiscal impulse. Others are now joining the party. If markets ‘follow
the fiscal’, we could see a further rotation in geographic equity
leadership – an environment that suits the current portfolio well,
as seen in the initial months of 2025.
And we can’t mention US exceptionalism without touching on
AI – given Big Tech is what has driven most of those exceptional
earnings. A crude way of making the point is by looking at the
Nvidia share price (recently the first company globally to reach a
$4 trillion market capitalisation) relative to the MSCI World Index.
The outperformance was turbocharged when Open AI’s Chat GPT
burst onto the scene in 2022. But the US is no longer the only
game in town.
Follow the fiscal
-10 -9 -8 -7 -6
Germany
UK
Italy
US
France
Japan
Canada
-5 -4 -3 -2 -1 0
Real per capita GDP 2019-2023 %
Average budget balance 2020-2023, % of potential GDP
-2
-1
3
2
6
4
7
5
1
0
8
R
2
= 0.95
Source: Minack Advisers. OECD average annual structural budget balance for
2020-2023 versus change in real GDP per capita between 2023 and 2019. China is
excluded from the chart. It is a clear outlier to the trend, delivering outsized real
per capita GDP growth relative to its average budget balance. We suspect this is
due to potential data anomalies in China’s reporting
The AI race
0
Jan 2021 Jul 2021 Jan 2022 Jul 2022 Jan 2023 Jul 2023 Jan 2024 Jul 2024 Jan 2025 Jul 2025
0.015
0.005
0.020
0.025
0.010
0.030
Nvidia relative to MSCI World, USD
Source: Bloomberg, data 31 December 2020 to 30 June 2025
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The arrival of DeepSeek has rightly placed question marks
over whether America will be the undisputed winner from the
AI revolution and whether only the US market provides profitable
exposure to the theme. Can companies like Nvidia maintain
their competitive moats, which allowed such high margins and
returns on capital? A healthy dose of uncertainty has been injected
and the narrative undermined as China’s growing tech prowess
become clearer.
There’s no doubt the US remains a pre-eminent superpower, but its
relative advantage appears to be narrowing.
Given this, we think it is difficult for the world’s allocators to argue
that holdings in US assets, and US dollars, should be exactly what
they were a year ago. And, if investors decide to reflect this in
portfolios, the current reversal has a lot further to run.
The potential rotation out of US assets is vast
-100
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
-80
-90
-40
-50
-30
-10
-20
-60
-70
0
US net international investment position as per GDP %
MSCI World Index weighting by country %
United
States
Japan United
Kingdom
Canada France Other
72.0%
5.4%
3.8%
3.1%
2.9%
12.8%
Source: US NIIP from Federal Reserve Bank of St. Louis, to December 2024; MSCI
World Index as at March 2025
The US runs a twin deficit: both fiscal and trade balances are
negative. The government spends more than it collects in revenue,
and the country imports more than it exports. To sustain this,
it relies heavily on foreign capital flows to finance both deficits.
If the pillars of US exceptionalism are being eroded – and foreign
investors become less willing to direct the marginal pound, euro
or yuan into US assets – the US dollar could face significant further
pressure. Notably, we don’t need to see mass outflows from US
markets to cause a problem. A simple decline in the pace of new
inflows could be enough to trigger a meaningful shift.
The potential scale of the rotation out of US assets is considerable.
As shown in the chart on the left, the US net international
investment position has deteriorated sharply in recent years, now
standing at $26 trillion, equivalent to more than 90% of US GDP.
This highlights the extent to which the US owes more to the rest
of the world than it owns in foreign assets, leaving it vulnerable to
shifts in foreign capital flows.
At the same time, the US dominates global equity markets,
representing more than 70% of major global equity indices
(as shown on the second chart). Given the scale of concentration in
US assets for overseas investors, any material rebalancing cannot
happen overnight – but global allocators will be thinking hard
about their current positions.
Recent weakness in the US dollar suggests this process may already
be underway. Investors appear to be reducing their dollar exposure,
even if not yet their outright US asset positions. This trend could
accelerate as the Federal Reserve cuts interest rates, making it
cheaper to hedge US dollar exposure and potentially adding further
momentum to the dollar’s decline.
Implications
While concerns about inflation and doubts over US exceptionalism
are widely discussed, investor portfolios remain largely unadjusted.
This matters, because the new regime could act as a wrecking ball
to several long-standing portfolio assumptions
– the protective role of nominal bonds will be called into question
– the US dollar could become the new long bond – a less reliable
source of protection
– the outlook for a typical global equity portfolio (with a benchmark
allocation of 70% to the US) could turn less favourable if, with
a higher inflation risk premium, we get higher nominal risk-free
interest rates and higher equity risk premiums – particularly if
they are combined with a rotation out of the US.
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Annual Report 2025
So, as this regime change evolves, there is a greater need for
genuine diversifiers, with an overarching focus on flexible, dynamic
and active management. We believe this will be necessary to deliver
true uncorrelated returns, and the liquidity which allows allocators
to step into opportunities that arise amidst the volatility.
Market context
Despite these clear structural risks, valuations in US equity
and credit markets remain elevated. After its sharp recovery,
the S&P 500 has broken through its all-time high and is back
up to trading at 22 times one year forward earnings. This is lofty
when compared with its average over the last ten years of 18 times
and, extraordinarily, is above the levels immediately after the
US election, when the US exceptionalism narrative was arguably
at its peak.
And it is not just the AI-fuelled euphoria and Magnificent 7 stocks
driving up the index: the other 493 stocks in the S&P 500 are
trading at almost a 40% premium to global equities excluding the
US. That compares with a historic premium of roughly 15% since
the global financial crisis.
It’s a similar picture in bond markets. US investment grade
credit spreads are back at extremely tight levels. This signals
that investors are once again sanguine, shifting the odds
away from recession and towards a more benign outcome.
Most sentiment indicators underline this optimism (if not yet
outright complacency), and investor positioning remains elevated.
In particular, hedge fund leverage is at extremes, with borrowing
having risen almost 25% over the last year. This is important
because they tend to be the marginal buyers and sellers in today’s
financial markets. This kind of build-up in confidence and leverage
is almost always observed somewhere in the system before a
market correction.
US stocks, by most measures, are at or near record high valuations
Prospective PE. By most measures, US stocks were at or near record high valuations coming into 2025. They’re still historically expensive
0
2007 2010 2012 2014 2016 2018 2020 2023 2025
15
10
30
20
35
25
5
40
Magnificent 7 MSCI World ex USS&P 500 (minus Magnificent 7)
Source: Minack Advisers. Magnificent 7 = Meta (from 2012), Alphabet, Nvidia, Apple, Microsoft, Amazon and Tesla (from 2010)
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Tactical view
So the market is priced for goldilocks growth and inflation –
not too hot, not too cold.
This is underpinned by a ‘just right’ slowdown – Trump-related
disruption causes economic growth to slow but not collapse, so the
Federal Reserve (Fed) can cut interest rates. The ‘One Big Beautiful
Bill Act’ and bank deregulation will unleash animal spirits
and encourage private sector investment and M&A. Contained
geopolitical risks will keep a lid on the oil price and global trade
flowing. AI will drive productivity gains and keep capital in US
assets, the rest of the world will deliver better growth, driven by
fiscal expansion.
It’s a far from impossible scenario – particularly as sentiment is
optimistic rather than euphoric, so there is scope for the equity
market to grind higher.
One of the key lessons learned in recent years is the sheer power
of this US market ‘machine’. Thus we are focused on ensuring the
portfolio can cope if this investor buying persists. Given the high
valuations at present, we have little appetite for adding significantly
to US cash equities. However, we can ‘rent’ the S&P 500 via call
options, which give us exposure to the US market should it grind
higher but limit the downside should the market fall. These
instruments remain attractively priced due to technical factors
in the options market.
However, our base case remains that there is potential for another
shock in markets. The hard data post-Liberation Day shocks could
turn down just as investors have been sucked back into the market
and the liquidity environment becomes less favourable. It is too
early to tell whether the impact of tariffs is simply a consumer tax
hike, or a tax hike plus an uncertainty growth shock. The path for
deregulation has also been delayed relative to initial expectations.
Alternatively, we could avoid further financial stress as US
policymakers attempt to drive a public sector led boom in nominal
growth – outgrowing spending, rather than cutting it. This would
run the risk of re-igniting the inflationary embers, leading to rising
yields and a 2022-style bust.
As always, we don’t know where markets will end up over the next
12 months. But we do know it is a fine line between too hot (when
yields rise, eventually causing a problem for the equity market)
and too cold (with economic weakness impacting earnings), and
the answer depends on several policy outcomes. The goldilocks
scenario is a narrow tightrope, and one that is almost fully priced
into markets.
As a result, the portfolio remains well protected.
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Annual Report 2025
3
2
%
o
f
t
h
e
t
i
m
e
Direction
of inflation
Falling Rising
Level of
inflation
High
Low
7
%
o
f
t
h
e
t
i
m
e
D
e
fl
a
t
i
o
n
R
e
fl
a
t
i
o
n
I
n
fl
a
t
i
o
n
D
i
s
i
n
fl
a
t
i
o
n
4
1
%
o
f
t
h
e
t
i
m
e
2
0
%
o
f
t
h
e
t
i
m
e
Equities -6%
Bonds -6%
Commodities +12%
Equities +12%
Bonds +4%
Commodities -1%
Equities +10%
Bonds +1%
Commodities +4%
Equities -4%
Bonds +10%
Commodities -8%
Positioning
Given all these concerns, what safe haven assets should we own?
Inflation protection
In high inflation environments, investors generally turn to gold,
real assets and certain flavours of equity as sources of protection.
All may have a role to play.
But the research shows the best thing investors can own in a period
of high and rising inflation is a diversified basket of commodities.
That is what has delivered the highest and most consistent positive
real returns during periods of high and rising inflation, based on
nearly 100 years of data and a range of asset classes across the UK,
the US and Japan.
The image below visualises a century’s worth of different inflation
regimes, defined by the level and direction of inflation: low and
rising, low and falling, high and falling, high and rising.
When inflation is high, bonds and equities are positively correlated.
Historically, high inflation regimes (rising and falling) have
been observed 60% of the time. And a third of that time, when
inflation is rising, bonds and equities were falling together, whilst
commodities were delivering positive returns.
However, certain commodities tend to perform well only in certain
regimes, even when inflation is rising.
That is why we own a diversified basket of commodities – including
exposure to precious (gold, silver, platinum) and industrial metals
(silver, copper) and oil, mining and agricultural equities – and then
manage it actively.
A more comprehensive breakdown of this research and its
implications is available in The Ruffer Review 2025.
Different inflation regimes 1926-2024
Source: Neville, Henry and Draaisma, Teun and Funnell,
Ben and Harvey, Campbell R. and van Hemert, Otto,
TheBest Strategies for Inflationary Times (25 May 2021)
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CASE STUDY | INFLATION
Gold mining equities
Structurally, gold is an asset with a valuable role to play, as it is a hedge against uncertainty of many kinds: trade uncertainty, monetary
instability, currency debasement, geopolitical fragmentation. None of these things are likely to go away. If anything, they are worsening.
In a world where the US dollar and US treasuries are less reliable, it may be one of the few assets that can provide protection for investors.
In the nearer term, though, we are cautious. At current levels, the gold price looks stretched on a variety of metrics (versus other
commodities, rates, inflation etc), hence we have been taking profits in the precious metals bullion exposure we purchased in January.
Gold miners’ margins are at record highs
0
500
2007 2008 2009 2010 2011 2012 2013 202520242023202220212020201920182017201620152014
1,500
1,000
3,000
2,500
2,000
3,500 200
0
50
100
150
Gold bullion price, $ per oz Gold Miners Index, rhsAll-in gold miners’ costs, $ per oz
Source: Scotiabank GBM, FactSet, Ruffer calculations
However, gold mining equities offer more value. They are now benefiting from a record high gold price, whilst their expenses have
been falling as input costs (labour, energy prices) have eased. As a result, their operating margins are at record highs. Crucially, these
companies are exercising far greater capital discipline than in previous cycles.
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CASE STUDY | PROTECTION
Yen
The yen is an asset that has offered extremely potent protection
in the past and could do so again.
Whilst our yen exposure has struggled recently – mainly due
to the Bank of Japan pulling back from raising interest rates,
given rising trade deal uncertainty and the upcoming Japanese
election – it remains an attractive holding for the portfolio.
The yen appears undervalued, and the wide US-Japan interest
rate differential means it acts as a cheap expression of duration,
benefiting if the Fed continues cutting rates. Our view is that
domestic inflation has become entrenched, with core CPI having
surpassed levels in the US, UK and Eurozone and wage growth
climbing above 3%, meaning policy in Japan should eventually
normalise, leaving the yen poised for an upward revaluation.
Primarily, though, we hold it as a safe haven asset. As we saw
last August, because of the pervasiveness of the yen carry trade
and the fact Japan is one of the largest foreign holders of US
assets, there is a risk of repatriation flows in a period of market
stress. That could lead to another significant appreciation in the
yen as has happened in previous crises. A trade deal with the US
could further support the yen, particularly if currency strength
against the dollar becomes part of the negotiation framework.
Sell-off protection
Whilst traditional offsets to equities have become less reliable, there remain sources of protection for investors willing to look further afield.
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CASE STUDY | PROTECTION
US credit spreads
Derivatives can provide explicit exposure to rising volatility, falling equity markets or other market stress.
Investment grade (IG) credit spreads have not responded as they normally do to rising policy uncertainty. Economic policy uncertainty
is spiking higher, but credit spreads are yet to catch up.
Credit spreads are lagging uncertainty
US IG credit spreads versus US economic policy uncertainty, credit protection offers an opportunity for positive returns during market
orreal economy stress.
0
100
1996 2000 2004 2008 2012 2016 2020 2024
300
200
600
500
400
700
0
1
3
2
6
5
4
7
US economic policy uncertainty index Investment grade credit spreads, %, rhs
Source: FRED, Bloomberg. Data to 30 June 2025. ICE BofA US Corporate Index Option-Adjusted Spread. US Economic Policy Uncertainty Index 30 Day
MovingAverage
This reflects investors’ confidence in the outlook, viewing Trump’s agenda as pro
growth. If that turns out not to be the case or investors reappraise the risk, credit
spreads should widen. That would generate returns for the portfolio, given our
exposure to rising stress in corporate borrowing markets. This position does not
express an expectation of corporate defaults; but of higher risk premia.
We believe it is the combination of protective positions which is
crucial. With derivatives, yen, real duration and precious metals,
we have assets that can act as powerful offsets in a variety of
scenarios. That is key, given the high levels of uncertainty (albeit
not priced) in markets today, volatile inflation and the fact that
nominal bonds offer less reliable protection in portfolios.
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Growth
Beyond these exciting protective assets, the portfolio also holds
a variety of ‘growth’ investments.
Equity themes
We entered this year cautious on the US market and have
maintained that stance, with only a small portion of our cash
equity allocation (around 5% of the portfolio) invested there.
However, at times, we have tactically increased this exposure
through S&P 500 call options, as mentioned earlier. At the
Company’s year end this added 6% to our net equity exposure.
Our focus remains on taking cash equity risk where we believe the
equity risk premium (the additional reward above cash) justifies
it and when starting valuations suggest the potential for attractive
long-term returns.
Our current equity themes include China (see case study),
the UK (well positioned as catch-up trade if the equity market
rotation continues), commodities (as previously discussed) and
financials (which could benefit from deregulation and higher
nominal growth).
Equities clearly remain central to generating long-term returns,
but looking ahead, the sources of those returns are likely to
broaden. After a prolonged period of US market dominance, it is
possible that attention shifts more towards the rest of the world.
This shift reflects both policy changes and the US market’s high
relative valuation.
Growth opportunities
Other
4.3
Industrials
2.7
Consumer
staples
2.1
Consumer
discretionary
2.0
Healthcare
1.2
China equities
3.9
Commodity
equities
2.7
US FCF yield basket
1.0
Japan
restructuring
basket
2.1
Financials
3.8
Source: Ruffer Investment Company, as at 30 June 2025. Allocation shown as % of the portfolio and calculated using market value
STOCK SELECTION
Bottom-up single stock ideas from our fundamental equity
analysts. Unconstrained by geography, sector or style, we hunt
for highly attractive risk-reward characteristics to drive returns.
This includes looking for ‘good odds’ such as asymmetric risk
return ‘value’ equities, special situations and out-of-favour sectors.
MACRO THEMES
The portion of our equity exposure that represents an expression
of Ruffer’s macro views, themes and factors. These allocations
are often selected for their offsetting exposure to other parts of
the portfolio.
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CASE STUDY | GROWTH
China equities
We maintain a position in Chinese equities, which remain under-owned
and out of favour globally, albeit to a lesser extent than six months ago.
The market offers compelling relative value, with an equity risk premium of
approximately 6.9%, compared to just 0.4% in the US. Recent targeted policy
measures – including interest rate cuts and fiscal support – have reaffirmed the
government’s commitment to growth and triggered the equity market’s best
performance since 2008. Whilst we trimmed the position, we continue
to see attractive potential. Chinese households have accumulated over
$11 trillion in excess savings – more than the entire GDP of Japan –
creating significant latent demand if confidence improves. At the
same time, China is entering a new phase of innovation-led
growth, highlighted by the emergence of large-scale AI
models such as DeepSeek. Investing in this region
carries significant risks, but we consider them
manageable given the position, size and the broader
portfolio context. Supported by attractive valuations, fiscal
flexibility and technological momentum, we believe Chinese
equities still offer the potential for outsized returns.
Overall, our cash equity allocation remains modest
at around 25% of the portfolio, reflecting the ongoing
period of high uncertainty and volatility. Nevertheless,
opportunities exist, and we anticipate that the next bull
market will differ from the narrow, US-centric rally of
recent years. In a post US exceptionalism world, it is not
just protective assets that require a different perspective.
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Summary
As Jonathan Ruffer wrote in his recent quarterly review,
“All-weather means combining shock-resistance with
satisfactory returns in the good times”.
Over the past year, we have had two equity market shocks
(August and April) interspersed with ‘good times’. The investment
conditions have been volatile and varied – and the portfolio has
navigated them effectively. In the rotation away from US markets,
growth assets and precious metals delivered strong returns.
During the subsequent market sell-off, the protective strategies
provided resilience. Just as importantly, the portfolio also
participated in the ensuing rally, delivering positive returns and
demonstrating that, while defensive in nature, it remains capable
of capturing upside in more benign environments.
This performance reinforces our confidence that the portfolio
is well positioned to achieve its investment aims.
Those simple aims, however, are now harder won. We are
entering a more inflation-prone, volatile era. The US – having
been a dominant outlier – is becoming relatively less exceptional.
This evolution undermines the traditional sources of protection
relied upon by balanced portfolios.
Yet this is not a cause for pessimism. With many equity indices
at all-time highs, and investors having benefited from years of
helpful asset price correlations, now is a prudent time to take stock,
reassess allocations, and prepare for the road ahead.
That road requires more than conventional thinking. It calls for
a broader, more adaptable approach – one that embraces active
management, deeper diversification, and the strategic use of tools
such as derivatives, currencies and commodities to preserve capital
and generate uncorrelated returns.
We are well-equipped for this new landscape, where flexibility
and agility are key. The portfolio is set up to thrive in this shifting
environment – to seek out opportunity in uncertainty, and to
deliver differentiated, all-weather returns through the changing
seasons ahead.
All-weather means combining
shock-resistance with satisfactory
returns in the good times.
Jonathan Ruffer
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Annual Report 2025
Overview
Top ten holdings
Investments Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Ruffer Illiquid Multi Strategies Fund 2015
1
GBP 126,581,748 62,776,193 7.06
Ruffer Protection Strategies International
1
GBP 7,898,000 47,309,023 5.33
US Treasury floating rate bond 31/01/2027 USD 64,681,800 47,0 67,64 4 5.30
US Treasury floating rate bond 31/10/2026 USD 63,691,000 46,428,291 5.23
US Treasury floating rate bond 31/01/2026 USD 63,700,000 46,438,098 5.23
US Treasury floating rate bond 30/04/2026 USD 63,739,000 46,432,181 5.23
US Treasury floating rate bond 31/07/2026 USD 63,634,000 46,383,032 5.23
WS Ruffer Gold Fund
1
GBP 8,190,635 38,577,997 4.34
Japan 0.005% 01/09/2025 JPY 6,000,000,000 30,310,304 3.40
Japan 0.005% 01/12/2025 JPY 4,000,000,000 20,182,805 2.27
1 Ruffer Illiquid Multi Strategies Fund 2015 Ltd and Ruffer Protection Strategies International are classed as related parties as they share the same Investment Manager
(Ruffer AIFM Limited) as the Company. WS Ruffer Gold Fund is also classed as a related party as its Investment Manager (Ruffer LLP) is the parent of the Company’s
Investment Manager
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Annual Report 2025
Ruffer’s approach to responsible investment
At Ruffer, we are committed
to being good stewards of our
shareholders’ assets
To do that, and to contribute to achieving our investment
objectives, we analyse environmental, social and
governance (ESG) issues.
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Overview
We believe ESG issues may represent both sources of investment
value and risk. Incorporating these into our investment approach
forms part of our responsibility to our shareholders.
Whether it’s climate change or executive pay or workforce
safety, we believe our considered approach helps us make better
investment decisions.
How we do it
Our approach to responsible investment was detailed in last
year’s Annual Report. As a brief reminder, we have a dedicated
responsible investment (RI) team which sits within the Research
function and works closely with our research analysts to implement
the firm’s responsible investment policy.
Our responsible investment policy is based on the twin pillars
of integration and stewardship.
Integration refers to the incorporation of potentially material
ESG factors into our fundamental or quantitative analysis of
individual securities.
Stewardship has two components: 1) engagement with companies
(and other market participants such as regulatory bodies or
industry associations) to improve our understanding of material
ESG risks faced and to encourage or challenge how relevant
ESG issues are considered; and 2) proxy voting as a formal way
to indicate our views, further the aims of our engagements and,
where appropriate, show support for management.
This year’s report includes updates on our integration and
stewardship efforts, along with an update on the (presently
suspended) Net Zero Asset Managers (NZAM) initiative.
Integration
A notable step forward in our responsible investment approach
over the last 12 months has been adding a quantitative lens to our
analysis of top-down equity positions, held to reflect macro views.
We have developed a holistic, quantitative company resource usage
and productivity indicator (RUPI).
RUPI is a model-based estimate of how a company’s profits can
grow, relative to how it consumes resources. The measure consists
of nine variables and seeks to identify their relationship to profit
over rolling five-year periods. RUPI aims to award a high score to
companies that are growing profits whilst using fewer resources
(such as energy, water and fixed tangible assets) and reducing
environmental damage (emissions and waste).
A company’s RUPI score can be evaluated alongside key financial
metrics such as free cash flow yield, and cash flow return on
investment. Additionally, our RUPI analysis helps identify
engagement targets. These are companies with low absolute scores,
underperformance relative to global peers, and weak disclosure
in specific non-financial areas we track. RUPI can also inform our
voting on management and shareholder resolutions.
We are also a signatory or supporter of the following
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Stewardship
Engagement
As a reminder, Ruffer believes that engagement is an effective
tool for achieving meaningful change, and we are committed to
engaging with companies on a wide range of topics. We encourage
management to adopt appropriate policies, activities and disclosure
in line with established best practices. We engage predominantly
with companies on material ESG issues identified as part of our
equity investment research and oversight processes.
Over the 12 months to 30 June 2025, we conducted 53 engagements
across a range of companies and topics.
Governance topics
53
44
Engagements
in the year
Number of
companies
engaged
Environmental topics
Social topics
Strategy topics
43
32
28
24
Source: Ruffer Investment Company. Please note that the sum of engagements
by topic does not equal the total number of engagements, as individual
engagements often cover multiple topics
CASE STUDY | RUPI IN ACTION
Micronics Japan
Micronics is held within the portfolio’s 2% exposure to a
basket of Japanese equities which we expect to benefit from
the government’s decades-long corporate governance reform
programme. We engaged with Micronics because it has a
low absolute RUPI score, lags its global peers, and has low
sub-scores for disclosure of the non-financial data (such
as environmental, social and governance metrics) captured
in the tool.
Micronics currently discloses select non-financial metrics
on its website, including data on emissions and energy
consumption. Management informed us that water withdrawal
data (fresh water taken from ground or surface water sources)
will be added soon, but waste data is not yet planned.
We encouraged the company to report a broader set of resource
consumption metrics, including additional detail on emissions.
We also discussed environmental targets. The company has
intensity targets for greenhouse gas emissions and energy use,
but lacks broader resource productivity goals. We encouraged
Micronics to expand and disclose these. While internal
targets exist, discussions on public disclosure are ongoing.
Management asked for our view on intensity versus absolute
targets (intensity targets are based on tonnes of carbon dioxide
equivalent emitted per unit of final product). This prompted
a discussion on how Ruffer looks for ambition, credibility
and scope for value creation when assessing companies’
transition plans.
Lastly, we raised the topic of human capital disclosure,
requesting quantitative data on investment in staff training
and employee turnover. Micronics noted that it runs an
external engagement survey, which informs training
development, but has yet to provide details of this publicly.
We also recommended moving beyond website updates to
publishing an integrated annual report with third-party
assured data.
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Voting
We vote on all shareholdings held within RICL.
We review relevant issues and apply our judgement, informed
by in-depth knowledge of each company. Voting gives us an
opportunity to encourage boards and management teams to
address areas of concern, as well as to support initiatives we believe
add long-term value.
We follow our voting policy and internal guidelines, and we use
proxy voting research from International Shareholder Services
(ISS) to support our assessment of resolutions and help identify
contentious issues. While we take proxy advisers’ recommendations
into account, we do not delegate or outsource our voting decisions
and it remains our responsibility.
Total %
Proposals voted 2,226 —
For votes 2,156 96.9
Against votes 67 3.0
Abstain votes 1 0.0
Withhold votes — —
Other 2 0.1
Votes with management 2,176 97.8
Votes against management 50 2.3
Source: Ruffer Investment Company 30 June 2024 to 30 June 2025
‘Other’refers to two votes where we voted for a time horizon rather than
thestandard categories
CASE STUDY | ENGAGEMENT IN ACTION
Barrick Mining
Barrick Mining (previously known as Barrick Gold) engages
in the production and sale of gold and copper. It also provides
exploration and mining development. Barrick’s central
principle is ‘ensuring that mines, businesses and communities
thrive long after the last ounce of gold or pound of copper is
extracted’, which means sustainability is considered holistically
and integrally with the management of their business. In our
engagements with Barrick, we have discussed issues including
human rights and community relations, biodiversity and
climate-related disclosure.
Barrick’s disclosure on climate risks and energy transition in
its sustainability report had become less detailed, especially
regarding disclosing a Marginal Abatement Cost Curve
(MACC). The MACC is a graphical tool used to visualise
the cost-effectiveness of different strategies (actions or
technologies) for reducing greenhouse gas emissions. It
plots the cost-effectiveness of various measures, essentially
showing how much it costs to reduce one unit of carbon
emissions. Barrick explained the less-detailed disclosure was
due to feedback that prior disclosures were overly technical.
We highlighted the importance we place on a MACC as a
component of overall disclosure and encouraged them to
consider publishing it in their annual sustainability report.
We cannot say it was our request that led to disclosure, but in
their 2024 sustainability report, Barrick included
a section titled GHG Reduction – Project
Pipeline. This used a grid to show costs,
technological readiness, and estimated
potential carbon reductions, similar
to a traditional MACC.
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CASE STUDY | VOTING IN ACTION
BP
At its capital markets update in February, BP announced a
reset of its strategy. Given poor share price performance and
the appearance of an activist investor on the share register,
CEO Murray Auchincloss effectively abandoned BP’s previous
strategic shift from an integrated oil company to an integrated
energy company. Instead, BP announced it would re-focus
on fossil fuels and scale down its renewables and low carbon
energy programme. We believe the ambition and credibility
of BP’s energy transition strategy has declined, and its scope
for creating shareholder value is now contingent on oil and gas
prices and the company’s discipline in executing projects.
BP’s persistent underperformance raises serious concerns about
the company’s leadership, strategic direction and operational
performance. While market sentiment may partially reflect past
capital allocation decisions and uncertainties surrounding the
company’s strategic identity, it also points to a deeper issue: a
lack of investor confidence in BP’s ability to deliver shareholder
value. This poor performance, in our view, is inextricably
linked to strategic missteps and leadership choices that
demand accountability.
For these reasons, we voted against the re-election of the chair
and two long-serving independent non-executive directors.
While the company announced plans prior to the AGM that the
Chair would step down following an orderly succession process,
and the NEDs are expected to rotate off in due course, we believe
it is important to send a clear signal on board accountability.
These directors oversaw a strategic pivot that failed to deliver
either meaningful shareholder returns or a credible transition
pathway. We believe holding these individuals to account is
essential to restoring governance credibility and long-term
strategic focus.
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Net Zero Asset Managers (NZAM) initiative
We discussed our commitment to NZAM in last year’s Annual
Report. As a brief reminder, we have adopted a pragmatic fossil
fuel strategy which prioritises achieving our investment objectives
whilst remaining mindful of the need to reduce greenhouse gas
emissions. Our NZAM targets are set a firm level rather than a
portfolio level.
Target
Progress as at
30 June 2024
Progress as at
30 June 2025
80% of assets in
scope considered
Net Zero, aligned or
aligning by 2030
29% of assets Net
Zero, aligned or
aligning
27% of assets Net
Zero, aligned or
aligning
By 2025, at least 70%
of financed emissions
in material sectors will
be either Net Zero
aligned or the subject
of engagement
70% of financed
emissions in material
sectors either aligned
or under engagement
77% of financed
emissions in material
sectors either aligned
or under engagement
50% reduction in
emissions intensity,
adjusting the baseline
to reflect shifts in
asset allocation
18% reduction
compared to the
same portfolio as at
31 December 2021
26% reduction
compared to the
same portfolio as at
31 December 2021
The approach to responsible investment in the US is undergoing
a period of reassessment, with firms adapting their sustainability
approaches. Several US-based asset managers have withdrawn
from NZAM as a result. Whilst the initiative is suspended, pending
a review, we retain our commitment to the targets we previously
set out. Climate risk remains deserving of attention whether or
not NZAM exists as a convening entity. We publish a TCFD Report
(Task Force on Climate-related Financial Disclosures) where
we disclose climate-related risks and opportunities. This report
explains our past climate-related activities and provides an insight
into how our understanding of the risks and opportunities our
investee companies face has evolved and how our research process
has adapted to new or updated analytics and information.
Summary
Our aim is to deliver consistent
positive returns – whatever happens
in financial markets
We believe that investing responsibly will lead to better long-term
outcomes for our shareholders. ESG considerations are sources
of both opportunity and risk and are thus potential contributors
to investment performance. As such, they are one important
sub-set of the risks and opportunities we consider in our
fundamental investment analysis to help guide security selection
and portfolio construction.
This year’s report underscores our ongoing commitment to
responsible investment. We continue to make meaningful progress
in incorporating these considerations into our investment process,
with notable developments through the enhancements provided
by RUPI. Our focus on stewardship remains strong, reflected
in our engagement with companies and thoughtful approach
to voting. We believe these efforts align with our responsibility
to shareholders and our view that environmental, social and
governance considerations play an important role in supporting
long-term value creation.
The following documents are available at
ruffer.co.uk/responsible-investing
– responsible investment policy
– our response to the UK Stewardship Code
– quarterly responsible investment reports
– a selection of articles on ESG topics
– TCFD Report
44
Ruffer Investment Company Limited
Annual Report 2025
What sets us apart
We focus on keeping clients safe.
By prioritising protection we’ve made good money for our
clients. Through boom and bust. For over 30 years.
Offering investors
something deliberately
different
Find out more
ruffer.co.uk/ric
45
Strategic reportOverview Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Business review
Its shares are traded on the Main Market of the London
Stock Exchange (LSE) and it was admitted to the premium
segment of the Official List of the UK Listing Authority on
20 December 2005. The Company is externally managed by
Ruffer AIFM Limited, a UK investment manager authorised
and regulated in the conduct of investment business in the
United Kingdom by the Financial Conduct Authority (FCA).
Ruffer AIFM Limited is also the Alternative Investment Fund
Manager (AIFM) of the Company.
The Company
carries on business
as a closed-ended
investment company.
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Ruffer Investment Company Limited
Annual Report 2025
Board
The Board of Directors is responsible for the overall stewardship
of the Company, including general management, structure, finance,
corporate governance, marketing, risk management, compliance,
gearing, contracts and performance. Biographical details of the
Directors, all of whom are non-executive, are listed on pages 58 and
59 and in the Management and Administration summary on page
126. The Company has no executive directors or employees.
The Board has contractually delegated to external parties various
functions as disclosed in the corporate governance statement on
pages 64 to 71.
Principal activities
The Company’s principal activity is to seek to achieve a positive
total annual return, after all expenses, of at least twice the
Bank of England base rate through predominantly investing in
internationally listed or quoted equities or equity-related securities
(including convertibles) or bonds which are issued by corporate
issuers, supra-nationals or government organisations.
The Company’s investment objective and investment policy are
set out below.
Investment objective
The principal objective of the Company is to achieve a positive
return, after all expenses, of at least twice the Bank of England
base rate.
The Company predominantly invests in internationally listed or
quoted equities or equity-related securities (including convertibles)
or bonds which are issued by corporate issuers, supra-nationals or
government organisations. Where appropriate, collective investment
schemes will also be used to gain exposure to these assets.
Investment policy
The Company invests across a broad range of assets, geographies
and sectors to achieve its objective. This allocation will change
over time to reflect the risks and opportunities identified by the
Investment Manager across global financial markets, with an
underlying focus on capital preservation. The allocation of the
portfolio between different asset classes will vary from time
to time so as to enable the Company to achieve its objective.
There are no restrictions on the geographical or sectoral exposure
of the portfolio (except those restrictions noted below).
In selecting investments, the Company does not adopt any
investment weightings by reference to any benchmark. Both the
Board and the Investment Manager believe that the adoption of
any index-related investment style would inhibit the ability of the
Company to deliver its objective.
The universe of equity, equity-related securities or bonds in which
the Company may invest is wide and may include companies
domiciled in, and bonds issued by entities based in, non-European
countries, including countries that are classed as emerging or
developing. This may result in a significant exposure to currencies
other than pound sterling. Where appropriate, the Investment
Manager will also use in-house funds to gain exposure to certain
asset classes.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
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Overview
Borrowing and gearing policy
It is not intended for the Company to have any structural
borrowing. The Company has the ability to borrow up to 30% of the
NAV at any time for short-term or temporary purposes, as may be
necessary for settlement of transactions, to facilitate share
redemption or to meet ongoing expenses.
Use of derivatives
The Company may use derivatives, including (but not limited to)
futures, options, swap agreements, structured products, warrants
and forward currency contracts, for investment and efficient
portfolio management purposes.
Investment restrictions
The proportion of the portfolio invested into companies based in
emerging or developing countries will be limited, at the time of any
investment, to below 15% of the Company’s gross assets.
The Directors have determined that the Company will engage in
currency hedging where the Investment Manager considers such
hedging to be in the interests of efficient portfolio management.
Total exposure to any single counterparty in the management
of cash and the use of derivatives should not exceed 15% of the
Company’s gross assets.
The Directors have determined that no more than 15% in aggregate
of the Company’s gross assets at the time of acquisition will be
invested in listed investment companies (including investment
trusts), with a maximum of 10% of gross assets invested in
investment companies not having stated investment policies
allowing them to invest no more than 15% of their own gross
assets in other UK listed investment companies (including
investment trusts).
Breach of investment policy
In the event of a breach of the investment objective and/or
investment policy set out above, a notification will be made to
a Regulatory Information Service if the Directors consider the
breach to be material.
In accordance with the requirements of the FCA, any material
changes in the Company’s investment objective and/or investment
policy set out above will require the approval of the FCA and
shareholders by way of an ordinary resolution at a general meeting.
Investment of assets
At each quarterly Board meeting, the Board receives a detailed
presentation from the Company’s Investment Manager which
includes a review of investment performance, recent portfolio
activity and a market outlook. It also considers compliance with
the investment policy and other investment restrictions during
the reporting year. The Company’s top ten holdings and Portfolio
Statement are on page 38 and pages 117 to 124 respectively.
Environmental policy
Whilst the Company has a limited carbon footprint in respect
of its day-to-day activities, the Board notes that the Investment
Manager recognises that environmental responsibility is core
to its longer-term business success, and actively integrates
environmental, social and governance (ESG) issues into its
investment process. The Investment Manager’s Stewardship
and Responsible Investment Policy is available upon request.
For more detail, please see the responsible investment report on
pages 39 to 44.
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Ruffer Investment Company Limited
Annual Report 2025
A number of environmental initiatives have been introduced by
the Board and the Administrator, as follows
– minimising printing of Board materials
– deemed consent from shareholders to accept electronic copies
of documents
– use of recycled paper for Annual and Interim Reports for
shareholders requiring hard copies and
– use of recycled Woodland Trust printer paper by the
Administrator, which funds new UK woodland.
In addition, during the year the Investment Manager has continued
to offset Directors’ and Investment Manager’s flights through the
acquisition of verified carbon offsets.
Shareholder value
The Board reviews on an ongoing basis the performance of the
Investment Manager and considers whether the investment
strategy utilised is likely to achieve the Company’s investment
objective of realising a positive total annual return, after all
expenses, of at least twice the return of the Bank of England Bank
Rate. Having considered the portfolio performance and investment
strategy, the Board has unanimously agreed that the interests
of the shareholders as a whole are best served by the continuing
appointment of the Investment Manager on the terms agreed.
Dividend policy
The Board’s policy is to pay dividends semi-annually, which are
typically declared in October and March, with an objective of
retaining no more than 15% of the Company’s income each year.
Dividends will only be paid from the Company’s revenue account
and not from capital. Dividend payments by the Company will
depend on the net income stream generated by the underlying
investments in the Company’s investment portfolio and therefore
no assurance can be given that dividends will continue to be paid.
The payment of any dividend by the Company is subject to the
satisfaction of a solvency test as required by the Companies
(Guernsey) Law, 2008, whereby the Board must be satisfied on
reasonable grounds that the Company will, immediately after
payment of any dividend, be able to pay its debts as they become
due and that the value of the Company’s assets would be greater
than the value of its liabilities.
The Board has the discretion to increase or reduce the dividend,
or not to declare a dividend, as appropriate in consideration of the
financial position of the Company.
Details of the dividends paid during the year are set out in note 5
to the Financial Statements on page 96.
Risk governance framework
The risk governance framework is designed to identify, evaluate
and mitigate the risks identified by the Board as significant to
the Company and reflecting its risk appetite and risk profile.
Its fundamental purpose is to assist the Board in understanding
and, where possible, mitigating rather than eliminating these
risks. Therefore, it can only provide reasonable and not absolute
assurance against any potential losses.
Within the risk governance framework, the Board and Audit and
Risk Committee regularly review the register of principal risks
(the ‘risk register’) maintained by the Company Secretary on behalf
of the Board. The risk register contains a detailed assessment and
tracking of the Company’s exposure in five principal risk categories:
strategic and performance risks, financial and portfolio risks,
operational risks, reputational risks, and regulatory risks.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Governance and ownership
The Board is ultimately responsible for identifying and assessing
the principal risks and implementing and monitoring procedures
to control and review them regularly. The Board places reliance
on its service providers, who have been delegated certain
day-to-day management of the Company. This includes the design
and implementation of the control framework to mitigate the
Company’s risks.
The Board undertakes an annual review and approval of its risk
appetite, considering recommendations from the Audit and Risk
Committee and key service providers responsible for implementing
the controls to mitigate the identified risks. These risks and any
emerging risks are considered at each quarterly Audit and Risk
Committee meeting and reported to the Board for approval.
Risk assessment
The Board has undertaken a robust assessment of the principal
risks facing the Company and the effectiveness of the risk
management and internal control systems in place to mitigate these
risks (which are summarised below). The Board, together with the
Investment Manager, regularly monitors relevant risks in relation
to the ones mentioned below.
The Board considers systemic and non-systemic risks, and the
overall control framework has been established to reduce the
likelihood and impact of individual inherent risks. The Board
cannot consider every risk but seeks to identify, assess and mitigate
remote and emerging risks that may significantly impact the
Company. The Board, via the Management Engagement Committee
and the Audit and Risk Committee, obtains regular reporting and
assurances from its main service providers on the adequacy of their
control environment and based upon this, assesses the suitability,
adequacy and relevance of these controls.
As detailed above, emerging risks are considered quarterly and may
have a material impact on the Company if they occur. Mitigating
factors are considered, but due to the unknown nature of future
events, the impact of these risks may not materialise. No emerging
risks were identified in the past year.
In addition to identifying climate change risk as a principal risk,
the Board assesses the impact of ESG factors on the Company’s
other risks, including investment and reputational risks, and
reviews the mitigants in place. The Board has considered the
impact of climate change on the Company and believes that it has
not given rise to a material impact on the Financial Statements of
the Company.
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Ruffer Investment Company Limited
Annual Report 2025
Principal risks
The principal risks are split between five risk categories and assessed based on the residual likelihood and impact (after control mitigants),
and are summarised on the heat map below.
Strategic and performance
SP1
Investment performance
SP2
Investment strategy
SP3
Geopolitical/economic
SP4
Discount to NAV
SP5
Climate change
Financial and portfolio
FP1
Interest rate risk
FP2
Market risk
Reputational
RT1
Reputational risk
Operational
OP1
Service provider risk
OP2
Fraud/cybersecurity
Regulatory
RP1
Legal/regulatory
High
High
Low
Low
Likelihood
Impact
SP1 SP2
RP1
OP1
RT1
SP3
SP5
FP1
SP4
OP2
FP2
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Risk Current year overview Mitigating controls
Risk
status
SP1
Investment performance
The Company is exposed to the risk
that its portfolio fails to perform in
line with the Company’s objective,
which could negatively impact
NAV and tarnish the Company’s
reputation in the short term.
The Company had a total NAV
return of 5.3% and a total share
price return of 7.3% during the year.
Refer to the Investment Manager’s
report on pages 12 to 37 for more
detail.
Performance and positioning are monitored constantly by the
Investment Manager.
Investment performance is reviewed, challenged and monitored
by the Board at each quarterly meeting and at other times when
expedient, paying particular attention to the diversification of
the portfolio and to the performance and volatility of underlying
investments.
SP2
Investment strategy
The Company is exposed to the
risk that the investment strategy
it follows ceases to be attractive
to investors, with resultant selling
causing the share price to fall, or
that the Investment Manager fails
to consistently implement the
investment strategy.
Refer to the Investment Manager’s
report on pages 12 to 37 for more
detail.
The investment strategy is set out in the prospectus and the
Investment Manager has processes in place to ensure that
itis consistent in managing the portfolio in accordance with
thestrategy.
The Investment Manager’s implementation of the strategy is
reviewed by the Board at quarterly meetings, with additional
updates when required. Any amendments to the strategy are put
to the Board for approval. The Investment Manager, the Company’s
Broker and the Board regularly seek shareholder views.
SP3
Geopolitical/economic
Escalation of risks might lead to
severe disruption of global supply
chains of critical raw materials
and technology and affect the
Company’s portfolio accordingly.
The Board is mindful of current and
emerging geopolitical risks such as
the war in Ukraine and the Middle
East; and the impact of recent US
foreign and trade policies.
The Investment Manager continually monitors developments and
reports frequently to the Board and would act in relation to the
balance of the portfolio accordingly.
SP4
Discount to NAV
The level of discount leads to
shareholder dissatisfaction.
The discount of the Company’s
share price to NAV narrowed during
the year from 5.0% to 3.4%.
Refer to the Investment Manager’s
report on pages 12 to 37 for more
detail.
The Company has a buyback and redemption facility to help
control the discount. During the year the Company bought back
55.8 million shares, representing 15.6% of the share capital in issue
at the start of the year. Refer to page 10 for more detail.
The Board, Investment Manager and Broker continually monitor
the market situation.
SP5
Climate change
The potential for physical and
transition risks which could have
material impacts on valuations
within the portfolio.
For details of the Company’s
activities during the year, refer to
the responsible investment report
on pages 39 to 44.
The Investment Manager has climate specialists within its ESG
team who actively engage with potential and existing investee
companies to establish climate risks and improve resilience.
The Investment Manager reports ESG engagements to the Board
regularly and the Board meets the ESG team from time to time to
understand how they operate.
FP1
Interest rate risk
The risk that real interest rates
rise unexpectedly, causing a
significant drop in the value of the
longer-dated, index-linked bonds
held in the portfolio.
Refer to the Investment Manager’s
report on pages 12 to 37 for more
detail.
The Investment Manager constantly monitors the macro
environment and situation regarding real interest rates and
reports frequently to the Board and acts in relation to the balance
of the portfolio accordingly.
FP2
Market risk
This includes foreign exchange,
price, credit and liquidity risk that
may cause unexpected volatility in
the Company’s investments.
Refer to the Investment Manager’s
report on pages 12 to 37 for more
detail.
These risks and the controls in place to mitigate them are reviewed
at each quarterly Board meeting.
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Ruffer Investment Company Limited
Annual Report 2025
Risk Current year overview Mitigating controls
Risk
status
OP1
Service provider risk
Internal control failures at key
service providers may result
in decreased service quality,
information security breaches,
errors, theft or fraud.
The risk that staff turnover or
merger and acquisition activity
at the Administrator, Investment
Manager or Broker affects
servicedelivery.
All control failures at the service
providers relevant to the Company
are brought to the Board’s attention.
The lead fund manager at the
Investment Manager changed
during the year; and the
Administrator continued to make
progress in systems harmonisation
following its acquisition activity of
the last few years.
No other material issues were
brought to the Board’s attention
oridentified.
The Management Engagement Committee conducts a formal
review of all key service providers annually.
The Board receives reports annually from the Investment Manager
and Administrator on their internal controls and reviews pricing
reports covering the valuations of underlying investments at each
quarterly Board meeting.
OP2
Fraud/cybersecurity
Fraud or large-scale network
disruption such as hacking,
malware, phishing and disrupted
denial of service attacks could be
disruptive to the Company and pose
a reputational risk if they are not
dealt with effectively.
The Investment Manager and
Administrator confirmed to the
Board that there were no fraud/
cybersecurity issues that had a
consequence on the Company.
The Board is provided with regular updates on any cyber
securityissues from its service providers and how they are
managing the risk.
All access to the offices of service providers is strictly controlled
and data protection policies are in place.
RT1
Reputation risk
If Strategic and Performance risks
are not managed adequately,
this may have an impact on the
reputation of the Company and/or
the Investment Manager.
See SP1 and SP2 above. There
are mitigants in place and regular
messaging to shareholders to
promote understanding of the
Company’s strategy.
The Investment Manager continues
to be highly regarded in the
marketplace.
The Board continually reviews any issues that may affect
the reputation of the fund and the Investment Manager has
Investor Relations to ensure all matters are transparent and
wellcommunicated.
RP1
Legal/regulatory
Legal and regulatory breaches
causing financial and
reputationalrisk.
Various regulatory changes have
occurred during the year or are
underway.
No material breaches during
theyear.
The Board considers all regulatory changes as they arise to assess
and mitigate their impact on the Company.
The Board reviews Investment Manager and Administrator
compliance reports quarterly and is informed of any material
breaches immediately if they occur.
The Board and the Registrar liaise on a regular basis to ensure
thatshareholders comply with financial crime requirements.
The Board is also supported by access to and reporting from
the Investment Manager’s dedicated climate change specialists
withinits ESG team. These contribute to the Board’s ability to
maintain its awareness and knowledge of climate/ESG-related
reporting requirements and its review of best practice for
investment companies.
The Board remains ultimately responsible for the identification and assessment of risk as well as implementing and monitoring procedures to
control such risks where possible. The Board seeks to mitigate and manage these risks through continual review, policy-setting, enforcement
of contractual obligations and monitoring of the Company’s investment portfolio.
53
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Going concern
The Directors believe that it is appropriate to continue to adopt the
going concern basis in preparing the Financial Statements since the
assets of the Company consist mainly of cash and cash equivalents
and securities which are readily realisable. The Directors also
note that overall, due to the nature of the Company’s portfolio,
which – as discussed in more detail in the Performance section
of the Chair’s statement and in the Investment Manager’s report
– comprises both equities and other more defensive assets, it has
not been affected significantly in terms of value or cash flows by the
effects of the conflicts in Ukraine and the Middle East, or by the
trade policies of the current US administration. Accordingly, in the
Directors’ opinion, the Company has adequate financial resources
to continue in operational existence for the foreseeable future.
Matters relating to the going concern basis are also discussed in the
long-term viability statement below and note 2(c) on page 92.
Long-term viability statement
The Directors have assessed the prospects of the Company over a
longer period than the 12 months minimum required by the ‘going
concern’ provision. For the purposes of this statement, having
regard to the economic planning cycle and the Company’s strategy
review period, the Board has adopted a three year viability period,
in common with the majority of investment companies and trusts
listed on the London Stock Exchange.
In its assessment of the Company’s viability over the three year
period, the Board has considered each of the Company’s principal
risks as detailed above and any emerging risks, and in particular
the impact of a significant fall in the value of the Company’s
investment portfolio.
The Directors consider that a 30% fall in the value of the Company’s
portfolio would be significant but would have little impact on the
Company’s ability to continue in operation over the next three
years. In reaching this conclusion, the Directors considered the
Company’s expenditure projections, the fact that the Company
currently has no borrowing, but has the ability to borrow up to
30% of its NAV, and that the Company’s investments comprise
predominantly readily realisable securities which can be expected
to be sold to meet funding requirements if necessary, assuming
market liquidity continues.
Also, the Board has assumed that the regulatory and fiscal regimes
under which the Company operates will continue in broadly the
same form during the viability period. The Board speaks with its
Broker and legal advisers on a regular basis to understand issues
impacting on the Company’s regulatory and fiscal structure.
The Administrator also monitors changes to regulations and
advises the Board as necessary. The Board also has access to the
Administrator’s compliance resources as well as the compliance
department of the AIFM.
Based on the Company’s processes for monitoring operating
costs, share discount, internal controls, the Investment Manager’s
performance in relation to the investment objective, the portfolio
risk profile, liquidity risk and the robust assessment of the principal
risks and uncertainties facing the Company, the Board has
concluded that there is a reasonable expectation that the Company
will be able to continue in operation and meet its liabilities as they
fall due over the three-year period.
Key performance indicators
The Board uses a number of performance measures to assess the
Company’s success in meeting its objectives. The key performance
indicators are disclosed in detail on page 2.
READ MORE
54
Ruffer Investment Company Limited
Annual Report 2025
Section 172 and stakeholder engagement
Whilst directly applicable to companies incorporated in the UK, the
Board recognises the intention of the AIC Code that matters set out
in Section 172 of the Companies Act 2006 are reported. The Board
strives to understand the views of the Company’s key stakeholders
and to take these into consideration as part of its discussions and
decision-making process. As an investment company, the Company
does not have any employees and conducts its core activities
through third-party service providers. Each service provider has
an established track record and is required to have in place suitable
policies and procedures to ensure it maintains high standards of
business conduct, treats customers fairly, and employs corporate
governance best practice.
The Board’s commitment to maintaining high standards of
corporate governance, combined with the Directors’ duties
incorporated in the Companies (Guernsey) Law, 2008, the
Company’s constitutive documents, the Disclosure Guidance and
Transparency Rules and the Market Abuse Regulation, ensure
that shareholders are provided with frequent and comprehensive
information concerning the Company and its activities.
Whilst the primary duty of the Directors is owed to the Company as
a whole, all Board discussions involve careful consideration of the
longer-term consequences of any decision and their implications
for stakeholders. Particular consideration is given to the continued
alignment between the activities of the Company and those that
contribute to delivering the Board’s strategy, which include the
Company’s Investment Manager, the AIFM, the Administrator,
the Broker and the Custodian.
Through the Board’s ongoing programme of shareholder
engagement (see ‘Relations with shareholders’ on page 65) and the
reports produced by each key service provider at quarterly Board
meetings, the Directors are satisfied that sufficient information is
provided so as to ensure the matters set out in Section 172 of the
Companies Act are taken into consideration as part of the Board’s
decision-making process.
The Board respects and welcomes the views of all stakeholders.
Any queries or areas of concern regarding the Company’s
operations can be raised with the Company Secretary.
Section 172 statement
Although the Company is not domiciled in the UK, through
adopting and reporting against the best practice principles set
out in the AIC Code, the Company is voluntarily meeting any
obligations under the UK Corporate Governance Code, including
Section 172 of the Companies Act 2006.
The Directors recognise their individual and collective duty to act
in good faith and in a way that is most likely to promote the success
of the Company for the benefit of its members as a whole, whilst
also having regard, amongst other matters, to the Company’s key
stakeholders and the likely consequences of any decisions taken
during the year, as set out below.
The interests of the Company’s employees
The Company has no direct employees and maintains close working
relationships with the employees of the Investment Manager and
the Administrator, who undertake the Company’s main functions.
Refer to the report of the Management Engagement Committee on
pages 78 to 79.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
The impact of the Company’s operations on
thecommunity and theenvironment
Whilst the Company has a limited impact on the community and
environment in respect of its day-to-day activities, the Board
notes that the Investment Manager recognises that environmental
responsibility is core to its longer-term business success, and
actively integrates ESG issues into its investment process.
The Investment Manager’s Stewardship and responsible investment
policy is available upon request. More information on our approach
to responsible investment is available on pages 39 to 44.
The need to foster the Company’s business relationships
with suppliers and others
The Board maintains close working relationships with all key
suppliers and those responsible for delivering the Company’s
strategy. The contractual relationship with each supplier and their
performance are formally reviewed each year. Refer to the report of
the Management Engagement Committee on pages 78 to 79.
The desirability of the Company maintaining a reputation
for high standards of business conduct
The Chair is responsible for setting expectations concerning the
Company’s culture and the Board ensures that its core values of
integrity and accountability are demonstrated in all areas of the
Company’s operation. The Chair and the Board assess and monitor
the activities to demonstrate the values by means of conducting
ongoing reviews through the year, the results of which are reported
at Audit and Risk Committee and Management Engagement
Committee meetings.
The need to act fairly between shareholders of
theCompany
The Board, in conjunction with the Investment Manager and
Broker, engages actively with shareholders to understand their
views and to ensure their interests are taken into consideration
when determining the Company’s strategic direction. Refer to the
section on ‘Relations with shareholders’ on page 65.
During the year, the Company has continued its share buyback
programme to seek to narrow the share price discount to NAV.
This programme has provided liquidity in the market and has
been accretive to NAV for remaining shareholders. The Investment
Manager has provided regular feedback to the Board relating to
interactions with major shareholders to determine their sentiment
about the impact of the share buyback programme on the share price.
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Ruffer Investment Company Limited
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Governance
report
What’s in this section?
Board of Directors 58
Directors’ report 60
Corporate governance statement 64
Directors’ remuneration report 72
Audit and Risk Committee report 74
Management Engagement Committee report 78
Depositary report 80
57
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Board of Directors
Nicholas Pink
Chair
Appointed to the Board
1 September 2020
M
A
Nicholas Pink, a resident of the United
Kingdom, is chair of one other listed company,
Baillie Gifford China Growth Trust plc. Prior
to a non-executive career, Nicholas had
extensive senior management experience in
financial services with previous roles at UBS
Investment Bank, including Global Head of
Research, Head of European Equities, Head
of European Research, Head of Asia Research
and Head of European Utilities Research.
Nicholas was appointed to the Board on
1 September 2020 and became Chair of the
Board on 10 December 2024.
Shelagh Mason
Independent Non-Executive Director
Appointed to the Board
1 June 2020
M
A
Shelagh Mason, a resident of Guernsey, is a
solicitor who specialised in English commercial
property. She retired as a consultant with
Collas Crill LLP in October 2020. She is
also non-executive chair of the Channel
Islands Property Fund Limited and Riverside
Capital PCC. She retired from the board of
Skipton International Limited, a Guernsey
licensed bank, on 30 June 2025, and until
28 February 2022 was a non-executive director
of The Renewables Infrastructure Group
Limited, a FTSE 250 company, when she retired
after nine years on the board. Shelagh also sits
on the board of Starwood European Real Estate
Finance Limited, a London-listed company.
Previously, Shelagh was a member of the board
of directors of Standard Life Investments
Property Income Trust Limited, a property fund
listed on the London Stock Exchange, for ten
years until December 2014. She retired from the
board of MedicX Fund Limited, a main market
listed investment company investing in primary
healthcare facilities in 2017 after ten years on
the board. She is a past chair of the Guernsey
Branch of the Institute of Directors, and also
holds the IOD Company Direction Certificate
and Diploma with distinction. Shelagh was
appointed to the Board on 1 June 2020.
Susie Farnon
Independent Non-Executive Director
Appointed to the Board
1 September 2022
M
A
Susie Farnon, a resident of Guernsey, is a Fellow
of the Institute of Chartered Accountants
in England and Wales and a non-executive
director of a number of property and investment
companies (as further detailed below). Susie
was a Banking and Finance Partner with KPMG
Channel Islands from 1990 until 2001 and Head
of Audit KPMG Channel Islands from 1999. She
has served as President of the Guernsey Society
of Chartered and Certified Accountants and
as a member of the States of Guernsey Audit
Commission and vice-chair of the Guernsey
Financial Services Commission. Susie was a
non-executive director of the Association of
Investment Companies, the UK investment
companies’ trade body, from April 2018 until
January 2025. She currently serves as a
non-executive director of Real Estate Credit
Investments Limited and Bailiwick Investments
Limited, both listed on recognised stock
exchanges. Susie was appointed to the Board on
1 September 2022.
58
Ruffer Investment Company Limited
Annual Report 2025
At the date of this report,
the Company has five
(2024: six) Non-Executive
Directors, all of whom
are independent.
Solomon Soquar
Senior Independent Director
Appointed to the Board
2 December 2022
M
A
Solomon Soquar, a resident of the United
Kingdom, has a portfolio of roles, including:
non-executive director of BlackRock
Sustainable American Income Trust plc and
Africa Research Excellence Fund, and Business
Fellow of Oxford University and Smith School
of Economics and Enterprise. Solomon has
a long and deep experience of over 30 years
across investment banking, capital markets
and wealth management. He has worked
with a number of major financial institutions,
including Goldman Sachs, Bankers Trust,
Merrill Lynch, Citi and Barclays. His most
recent executive role has been as CEO of
Barclays Investments Solutions Limited.
Solomon holds BA/MA in Politics, Philosophy
and Economics and M.Phil in Economics from
Balliol College, Oxford. Solomon was appointed
to the Board on 2 December 2022 and became
Senior Independent Director of the Board on
10 December 2024.
Colleen McHugh
Independent Non-Executive Director
Appointed to the Board
1 June 2024
M
A
Colleen McHugh, a resident of Guernsey, is
an investment professional with over 25 years
of experience in the investment and financial
services industry, having worked at publicly
listed banks, including HSBC, Barclays and
Butterfield Bank, working across multiple
regions with a focus on international financial
centres. Her career includes senior investment
leadership positions, most recently as chief
investment officer at Wealthify, a UK-regulated
digital adviser within the Aviva PLC group, and
previously as managing director of 1818 Venture
Capital, a Guernsey-licensed asset manager.
Colleen currently serves as a non-executive
director of Real Estate Credit Investments
Limited and, since June 2025, as audit chair
of Chenavari Toro Income Fund Limited
– both London-listed funds. She also holds a
non-executive role with a private investment
fund and a Guernsey-licensed commercial and
captive insurance company. A Chartered Wealth
Manager and Fellow of the Chartered Institute
for Securities & Investment (CISI), Colleen
holds an economics degree from the University
of Ireland, Galway, an MBA from the University
of London, and the ESG Investing Certificate
from the CFA Institute. Colleen was appointed
to the Board on 1 June 2024.
Key
A
Audit and Risk Committee
M
Management Engagement Committee
Committee Chair
59
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
The Directors of the Company present the audited Financial
Statements and their report for the year ended 30 June 2025, which
have been prepared in accordance with the Companies (Guernsey)
Law, 2008 (‘company law’).
Registration
The Company was incorporated with limited liability in Guernsey
on 1 June 2004 as a company limited by shares and as an
authorised closed-ended investment company. As an existing
closed-ended fund the Company is deemed to be granted an
authorised declaration in accordance with section 8 of the
Protection of Investors (Bailiwick of Guernsey) Law, 2020,
as amended and rule 6.02 of the Authorised Closed-ended
Investment Schemes Rules and Guidance 2021.
Principal activity and investment objective
The Company is a Guernsey authorised closed-ended investment
company and trades on the Main Market of the London Stock
Exchange (LSE). The principal objective of the Company is detailed
in the strategic report on page 47 of the Financial Statements.
Share issuance
During the year, no new redeemable participating preference
shares were allotted or issued under the block listing facility
(30 June 2024: nil redeemable participating preference shares
issued). Details of the block listing facility are set out in note 13 on
page 100.
Purchase of own shares by the Company
The Company may purchase, subject to various terms as set out
in its Articles and in accordance with the Companies (Guernsey)
Law, 2008, up to 14.9% of the Company’s shares in issue following
the admission of shares trading on the LSE’s market for listed
securities. For additional information, refer to note 20 on pages
114 to 115.
During the year, the Company bought 55,760,000 shares into
treasury (30 June 2024: 25,580,000), 15.6% of the shares in issue
at the start of the financial year. Subsequent to the year end, a
further 5,430,714 shares have been bought into treasury.
The Board also has the discretion to operate the Redemption
Facility, offering shareholders the possibility of redeeming all or
part of their shareholding for cash at NAV, if it appears appropriate
to do so.
Results and dividends
The results for the year are set out in the Statement of
Comprehensive Income on page 89. Details of dividends paid
and proposed are set out in note 5 on page 96.
Subsequent events
Events occurring after the balance sheet date are disclosed in note
21 on page 115 in the Financial Statements.
Shareholder information
The Company announces its unaudited NAV on a weekly
basis and at the month end. A monthly report on investment
performance is published by the Company’s Investment Manager,
on the Company’s website at ruffer.co.uk/ric
Investment management
The key terms of the Investment Management Agreement, and
specifically, the fee charged by the Investment Manager, are set
out in notes 8 and 16 of the Financial Statements.
The Board reviews on an ongoing basis the performance of the
Investment Manager and considers whether the investment
strategy utilised is likely to achieve the Company’s investment
objective of realising a positive total annual return, after all
expenses, of at least twice the return of the Bank of England
Bank Rate.
Directors’ report
60
Ruffer Investment Company Limited
Annual Report 2025
In accordance with UK Listing Rule 11.7.2, and having formally
appraised the performance, investment strategy and resources
of the Investment Manager, the Board has unanimously agreed
that the interests of the shareholders as a whole are best served
by the continuing appointment of the Investment Manager on the
terms agreed.
The Investment Management Agreement will continue in force
until terminated by the Investment Manager or the Company giving
to the other party thereto not less than 12 months’ notice in writing.
Directors
The details of the Directors of the Company during the year and
at the date of this report are set out on pages 58 and 59 and in the
Management and Administration summary on pages 78 and 79.
Directors’ interests
The details of the number of redeemable participating preference
shares held beneficially by the Directors who held office at
30 June 2025 and up to the date of this report are set out in note 16
on page 102.
Substantial share interests
As at 31 August 2025
1
, the Company has received notifications
in accordance with the FCA’s Disclosure and Transparency Rule
5.1.2 R of the following interests in 3% or more of the voting rights
attaching to the Company’s issued shares.
Investor
Shares
held
% of issued
share capital
RBC Brewin Dolphin, stockbrokers 39,883,474 13.38
Rathbones 30,455,815 10.22
Interactive Investor 23,398,604 7.85
Hargreaves Lansdown, stockbrokers 22,276,625 7.47
Charles Stanley 16,970,554 5.69
AJ Bell, stockbrokers 16,010,684 5.37
Evelyn Partners 13,626,700 4.57
1 Data is taken from the latest available Share Register Analysis produced by
Richard Davies Investor Relations Limited
International tax reporting
For the purposes of the US Foreign Accounts Tax Compliance
Act (FATCA), the Company registered with the US Internal
Revenue Service (IRS) as a Guernsey reporting Foreign Financial
Institution (FFI) in June 2014, received a Global Intermediary
Identification Number (99DLPF.99999.SL.831), and can be found
on the IRS FFI list.
The Common Reporting Standard (CRS) is a standard developed
by the Organisation for Economic Co-operation and Development
(OECD) and is a global approach to the automatic exchange of
tax information, to counter tax evasion and to build upon other
information-sharing legislation, such as FATCA. Guernsey has
adopted the CRS, which came into effect on 1 January 2016.
The Board confirms that the Company’s FATCA and CRS
submissions for 2024 were submitted by the deadline of
30 June 2025.
The Company is committed to zero tolerance towards the
facilitation of tax evasion.
Alternative Investment Fund Managers Directive
(AIFMD)
The Company is categorised as a non-EU Alternative Investment
Fund (AIF). The AIFMD seeks to regulate managers of AIFs, such
as the Company. It imposes obligations on AIFMs who manage
AIFs in a member state of the European Economic Area (EEA), or
who market shares in AIFs to investors who are domiciled, or with
a registered office, in an EEA state. Under the AIFMD, an AIFM
must be appointed and must comply with various organisational,
operational and transparency requirements.
The Company has appointed the Investment Manager to act as
AIFM on behalf of the Company. The Investment Manager is
responsible for fulfilling the role of the AIFM and ensuring the
Company complies with the AIFMD requirements. The AIFM has
no direct employees as it delegates its duties to Ruffer LLP. Ruffer
LLP’s employee remuneration disclosure requirements under
the AIFMD are included in its Pillar III remuneration disclosure
statement.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Non-mainstream pooled investments
The Company intends to be operated in such a manner that its
shares are not categorised as non-mainstream pooled investments.
Among other things, this requires the Company to pay dividends
such that it retains no more than 15% of the income that it receives
or is deemed to receive for UK tax purposes on an annual basis
so that it would qualify as an investment trust if it were UK
tax-resident.
Disclosure of information to the Independent Auditor
(the ‘Auditor’)
Each of the persons who is a Director at the date of approval of the
Financial Statements confirms that
1 so far as each Director is aware, there is no relevant audit
information of which the Company’s Auditor is unaware and
2 each Director has taken all steps he ought to have taken
as a Director to make himself aware of any relevant audit
information and to establish that the Company’s Auditor is
aware of that information.
This confirmation is given and should be interpreted in accordance
with the provisions of Section 249 of the Companies (Guernsey)
Law, 2008.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and
Financial Statements in accordance with applicable Guernsey law
and regulations.
Guernsey company law requires the Directors to prepare financial
statements for each financial year. Under that law they have
elected to prepare the Financial Statements in accordance with
IFRS Accounting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and applicable law.
Under company law, the Directors must not approve the Financial
Statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or loss
of the Company for that period.
In preparing the Financial Statements, International Accounting
Standard 1 requires that directors
– select suitable accounting policies and apply them consistently
– make judgements and estimates that are reasonable, relevant
and reliable
– state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the Financial Statements
– assess the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
– use the going concern basis of accounting, unless they either
intend to liquidate the Company or cease operations, or have
no realistic alternative but to do so.
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the Financial Statements comply with company law. They are also
responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the oversight of the maintenance
and integrity of the corporate and financial information included
on the Company’s website at ruffer.co.uk/ric. Legislation in
Guernsey governing the preparation and dissemination of Financial
Statements may differ from legislation in other jurisdictions.
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Ruffer Investment Company Limited
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Responsibility statement
We confirm that to the best of our knowledge
1 The Financial Statements have been prepared in conformity
with IFRS as issued by the IASB, give a true and fair view of
the assets, liabilities, financial position and profit or loss of the
Company as required by DTR 4.1.12
2 The Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for the
shareholders to assess the Company’s performance, business
model and strategy and
3 The Annual Report including information detailed in the Chair’s
statement, the Director’s report, the Investment Manager’s
report, the Report of the Depositary and the notes to the
Financial Statements, includes a fair review of the development
and performance of the business and the position of the
Company together with a description of the principal risks and
uncertainties that it faces, as required by
a DTR 4.1.8 and DTR 4.1.9 of the Disclosure and Transparency
Rules, being a fair review of the Company’s business and a
description of the principal risks and uncertainties facing the
Company and
b DTR 4.1.11 of the Disclosure and Transparency Rules, being
an indication of important events that have occurred since the
end of the financial year and the likely future development of
the Company.
On behalf of the Board
Susie Farnon
Director
30 September 2025
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Ruffer Investment Company Limited
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Overview
Corporate governance statement
Corporate governance
On 1 January 2016, the Company became a member of the
Association of Investment Companies (AIC) and complies with the
2019 AIC Code of Corporate Governance issued in February 2019
(the ‘AIC Code’). The Company has not early adopted the 2024
edition of the AIC Code, which is effective for accounting periods
commencing on or after 1 January 2025. By complying with
the AIC Code, the Company is deemed to comply with both
the UK Corporate Governance Code 2018 (the ‘UK Code’) and
the Guernsey Financial Services Commission (GFSC) Finance
Sector Code of Corporate Governance (as amended in June 2021)
(the ‘GFSC Code’).
To ensure ongoing compliance with these principles, the Board
receives a report from the Company Secretary on an annual basis
identifying how the Company is in compliance and identifying
any areas of non-compliance. The Company has complied with the
provisions of the UK Code throughout the year, with the following
exceptions
– the Company has no chief executive, as required by principle
G and provision 9 of the UK Code. See the Composition and
independence of the Board section on pages 65 to 66
– the Company has no internal audit function, as envisaged by
principle M and provision 25 of the UK Code. See the Internal
control section on pages 69 to 70 and
– the Company does not have a remuneration committee, as
required by principle Q and provision 32 of the UK Code.
See the Remuneration Committee section on page 69.
The AIC Code is available on the AIC’s website, theaic.co.uk. It
addresses the principles and provisions set out in the UK Code,
and includes an explanation of how the AIC Code adapts those
principles and provisions, and sets out additional provisions, to
make them relevant for investment companies.
The Board, having reviewed the AIC Code, considers that it has
maintained procedures during the year ended 30 June 2025 and
up to the date of this report to ensure that it complies with the
AIC Code.
Purpose of the Company
The purpose of the Company is to provide its shareholders with
access to a portfolio of equity, equity-related and debt investments
that will produce a positive return of at least twice the Bank of
England base rate. For further details, see the strategic report
section on pages 4 to 56.
Role of the Board
The Board is the Company’s governing body and has overall
responsibility for ensuring the Company’s success by directing
and supervising the affairs of the business and meeting the
appropriate interests of shareholders and relevant stakeholders,
while enhancing the value of the Company and also ensuring
protection of investors. A summary of the Board’s responsibilities
is as follows
– statutory obligations and public disclosure
– strategic matters and financial reporting
– capital management, including gearing and dividend policy
– review of investment performance and associated matters
– risk assessment and management including reporting
compliance, governance, monitoring and control and
– other matters having a material effect on the Company.
The Board’s responsibilities for the Annual Report are set out in
the Statement of Directors’ responsibilities on pages 62 to 63.
The Board has contractually delegated responsibility for the
management of its investment portfolio, the arrangement of
custodial and depositary services and the provision of accounting
and company secretarial services. Documented contractual
arrangements are in place with these companies which define the
areas where the Board has delegated responsibility to them. The
Board has adopted a schedule of matters specifically reserved for
its decision-making and distinguishing these from matters it has
delegated to the Company’s key service providers. This schedule is
available on the Company’s website at ruffer.co.uk/ric.
The Board needs to ensure that the Financial Statements, taken
as a whole, are fair, balanced and understandable and provide the
information necessary for shareholders to assess the Company’s
performance, business model and strategy.
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Ruffer Investment Company Limited
Annual Report 2025
In seeking to achieve this, the Directors have set out the Company’s
investment objective and policy (see page 47) and have explained
how the Board and its delegated Committees operate and how
the Directors review the risk environment within which the
Company operates and set appropriate risk controls. Furthermore,
throughout the Financial Statements the Board has sought to
provide further information to give shareholders a fair, balanced
and understandable view.
Relations with shareholders
The Board welcomes shareholders’ views and places great
importance on communication with its shareholders. The
Board receives regular reports on the composition of the
shareholder register and the views of its shareholders from the
Company’s Broker and Investment Manager, which are taken into
consideration as part of the Board’s decision-making process.
The Chair and Directors meet with shareholders throughout the
year both one-on-one and at the annual investor presentations
co-ordinated by the Investment Manager to discuss the investment
strategy. The next such event is scheduled to take place at the
London office of the Investment Manager in November 2025.
The AGM of the Company also provides a forum for shareholders
to meet and discuss issues with the Directors of the Company.
The Investment Manager organises webinars to discuss the
investment strategy on a regular basis, which shareholders are
invited to attend.
In addition, the Investment Manager maintains a website which
contains comprehensive information, including financial reports,
prospectus and monthly reports on investment performance,
which contains share price information, investment objectives,
investment reports and investor contacts.
The Board and Ruffer have collaborated on a revised marketing
strategy to communicate with retail shareholders. The details are
contained in the Chair’s statement on pages 6 to 11.
Composition and independence of the Board
The Board currently comprises five Non-Executive Directors
(2024: six), all of whom are considered to be independent, which
it considers to be its optimal size for the time being. The Board
considers that it has a good balance of skills and experience to
ensure it operates effectively. The Directors of the Company
are listed on pages 58 and 59 and in the Management and
Administration summary on page 126.
Susie Farnon and Colleen McHugh both serve on the board of Real
Estate Credit Investments Limited, a company listed on the London
Stock Exchange, but the Board believes that this does not impact
their ability to be considered independent.
The Company has no employees and therefore there is no
requirement for a chief executive. None of the Directors has a
contract of service with the Company.
The current Chair of the Board is Mr Nicholas Pink. Mr Pink was
appointed as Chair of the Board on 10 December 2024.
The Chair of the Board must be independent for the purposes of
Chapter 15 of the Listing Rules. Mr Pink is considered independent
because he
– has no current or historical employment with the Investment
Manager
– has not provided any professional advisory services to the
Investment Manager and
– has no current directorships in any other investment funds
managed by the Investment Manager.
As Chair, Mr Pink is responsible for leading the Board of Directors
and for ensuring its effectiveness in all aspects of its role. The key
responsibilities of the Chair are as follows
– meeting with major shareholders to obtain a balanced
understanding of any issues, concerns, and providing feedback
to the Board
– demonstrating ethical leadership and promoting the highest
standards of integrity, probity and corporate governance
throughout the Company
– setting the Board’s agenda and ensuring the Board has in place
effective decision-making processes which are supported by
accurate and high-quality information and
– leading the annual performance evaluation of the Board
and taking all appropriate actions based on the results of
the evaluation.
In accordance with the AIC Code and in recognition of the Board’s
desire to maintain high standards of corporate governance,
Mr Solomon Soquar was appointed as the Company’s Senior
Independent Director (SID) on 10 December 2024 in succession
to Mr Pink.
READ MORE
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
The key roles and responsibilities of the SID are as follows
– providing support to the Chair in relation to matters of Board
effectiveness and governance
– being available to shareholders and the other Directors as an
additional point of contact or to communicate any concerns to
the Board
– leading the annual performance evaluation of the Chair of the
Board and succession planning for the Chair’s role and
– attending meetings with major shareholders alongside the Chair,
as required.
The Company holds a minimum of four Board meetings per year to
discuss strategy, general management, structure, finance, dividend
payments, capital management, corporate governance, ESG
matters, marketing, risk management, compliance and gearing,
contracts and performance. In addition, an annual strategy
meeting is held by the Board with the Investment Manager.
The quarterly Board meetings are the principal source of regular
information for the Board, enabling it to determine policy and to
monitor performance, compliance and controls, but these meetings
are supplemented by communication and discussions throughout
the year.
Representatives of the Investment Manager and the Administrator
attend each Board meeting either in person or by videoconference,
thus enabling the Board to fully discuss and review the Company’s
operations and performance. In addition, representatives from
the Company’s Broker attend at least two Board meetings a year.
Each Director has direct access to the Investment Manager and
Administrator and may at the expense of the Company seek
independent professional advice on any matter.
Attendance at the Board and other meetings during the year was as follows.
Board Audit and Risk Committee Management Engagement Committee
Meetings Scheduled Attended Scheduled Attended Scheduled Attended
Nicholas Pink 4 4 4 4 2 2
Susie Farnon 4 4 4 4 2 2
Shelagh Mason 4 4 4 4 2 2
Solomon Soquar 4 4 4 4 2 2
Colleen McHugh 4 4 4 4 2 2
Christopher Russell (retired 10 December 2024) 2 2 2 2 1 1
In addition to the above meetings, a number of ad hoc meetings were held during the year.
The Board is satisfied that all Directors have sufficient time to meet their Board responsibilities. All material new Director appointments
require prior Board approval. The Board maintains a list of external directorships for each Director and reviews it quarterly. The Board is
required to publish any new appointments to listed companies. The Board evaluation assesses effectiveness annually and this is conducted
externally triennially.
Conflicts of interest
Directors are required to disclose all actual and potential conflicts of interest as they arise for approval by the Board, who may impose
restrictions or refuse to authorise conflicts. The process of consideration and, if appropriate, approval will be conducted only by those
Directors with no material interest in the matter being considered. The Board maintains a Conflicts of Interest policy which is reviewed
periodically and a Business Interests and Potential Conflicts of Interest Register which is reviewed by the Board at each quarterly
Board meeting.
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Ruffer Investment Company Limited
Annual Report 2025
Directors’ indemnity
Directors’ and Officers’ liability insurance cover is maintained by
the Company on behalf of the Directors.
Re-election
The Company’s Articles prescribe that, at each AGM, one-third
of the Directors shall retire from office and may offer themselves
for re-election. However, in line with best practice, the Board has
determined that all of the Directors should stand for re-election at
each AGM.
Accordingly, on 10 December 2024 at the 20th AGM of the
Company, Nicholas Pink, Shelagh Mason, Susie Farnon, Colleen
McHugh and Solomon Soquar retired as Directors of the Company
and, being eligible, offered themselves for re-election (election in
the case of Colleen McHugh), and were re-elected (or elected) as
Directors of the Company by the shareholders.
Further details regarding the experience of each of the Directors
are set out on pages 58 and 59.
The Directors may at any time appoint any person to be a Director
either to fill a vacancy or as an addition to the existing Directors.
Any Director so appointed shall hold office only until, and shall
be eligible for election at, the next general meeting following their
appointment but shall not be taken into account in determining the
Directors or the number of Directors who are to retire by rotation at
that meeting if it is an AGM.
Board evaluation
The Board policy is for an external evaluation of its effectiveness
every three years and an annual internal evaluation in between.
During the prior year, the Board engaged Lintstock, a firm
highly experienced in conducting board evaluations, to facilitate
an external evaluation of the Board, following on from their
previous review during the 2022/2023 financial year. The Board
evaluation considered a broad range of areas including; Board
composition and expertise, Board dynamics, the structure of the
Board and its Committees, Board oversight of investment strategy
and performance, relations with shareholders, oversight of risk
management, succession planning, in particular in relation to
the Chair, and priorities for change during the year. The Board
has subsequently implemented action points related to Board
succession, enhanced reporting on voting and engagement by
the Investment Manager, and the efficiency of Board meetings.
The next external evaluation is scheduled for the 2026/2027
financial year.
During the current financial year, the Board conducted a self-
evaluation of its performance and that of the Company’s individual
Directors, which was led by the Chair and, as regards the Chair’s
performance evaluation, by the Senior Independent Director. The
annual self-evaluation considered how the Board functions as a
whole, taking into account the balance of skills, experience and
length of service of each Director, and also reviewed the individual
performance of its members.
To facilitate the self-evaluation, the Company Secretary circulated
a detailed questionnaire to each Director and a separate
questionnaire for the evaluation of the Chair. The questionnaires,
once completed, were returned to the Company Secretary who
collated responses, prepared a summary and discussed the Board
evaluation with the Chair prior to circulation to the remaining
Board members. The performance of the Chair was evaluated
by the other Directors, led by the Senior Independent Director.
The internal review concluded that the Board was operating
effectively. Improvements implemented since the review include
more Director-only meetings and more detailed budgeting for
other costs.
The Board considers the annual self-evaluation process to be
appropriate having regard to the non-executive role of the Directors
and the significant outsourcing of services by the Company to
external providers.
Board succession planning
The Board considers it has a breadth of experience relevant to
the Company, and the Directors believe that any changes to the
Board’s composition can be managed without undue disruption.
An induction programme is in place for all Director appointees.
Any proposals for a new Director are discussed and approved by
the Board.
The Board’s succession planning policy seeks to ensure that
the Board remains well balanced and that the Directors have
a sufficient level of skills, knowledge and experience to meet
the needs of the Company. The Directors are ever cognisant of
the need for the Board to have a balance of gender and other
attributes, including the requirement to appoint a majority of
non-UK resident Directors.
The Board’s policy is that all Directors of the Company, including
the Chair, shall normally have tenure limited to nine years from
their first appointment to the Board. Exceptions may be made,
particularly in respect of the Chair, for example to facilitate
effective succession planning, or were the Company in the middle
of a corporate action, when an extension may be appropriate.
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Overview
Board diversity
The Board’s policy, which has been implemented in its recent succession planning, is to support the widening of its diversity, whilst ensuring
the capabilities, experience and background of each member remain appropriate to the Company and continue to contribute to overall Board
effectiveness.
The objectives of this policy are to seek to broaden the diversity represented on the Board and to bring fresh perspectives to the Board’s
decision-making processes from a wide range of backgrounds. The Board utilised a skills matrix during recent recruitment to ensure it
possesses a diverse range of skills appropriate for its effective operation.
In compliance with UK Listing Rule 6.6.6, the Company has provided information, set out in the tables below, on how it has met the following
targets on Board diversity
– at least 40% of the Board is female
– at least one senior position on the Board is held by a woman and
– at least one individual on the Board is from a minority ethnic background.
The Board confirms that all of the targets have been met as at 30 June 2025, the Company’s chosen reference date within its financial year
for the data.
Gender identity
Number of
Board members
% of
the Board
Number of
senior positions
on the Board
Men 2 40 2
Women 3 60 2
Ethnic background
Number of
Board members
% of
the Board
Number of
senior positions
on the Board
White British or other White (including minority white groups) 4 80 3
Black/African/Caribbean/Black British 1 20 1
Other ethnic group — — —
The data shown in the above tables reflect the gender and ethnic background of the Board, and were collected on the basis of self-reporting
by the individuals concerned. The questions asked were ‘Which ethnicity category best describes your background?’ and ‘What is the gender
in which you wish to be categorised?’
The Listing Rules specify the positions of CEO, CFO, Chair and SID as being senior positions. The Board notes that, as an externally managed
investment company, with a Board comprised entirely of Non-Executive Directors, it does not have the roles of a chief executive officer or
chief finance officer as envisaged in LR 9.8.6, and therefore for the purpose of the above targets, it considers the senior positions on the Board
to include the roles of Chair, SID and Chair of any permanent committee of the Board.
There have been no changes to the composition of the Board subsequent to the year end.
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Committees of the Board
The Board has established an Audit and Risk Committee and
a Management Engagement Committee and approved their
terms of reference, copies of which can be obtained from the
Company Secretary upon request and on the Company’s website
at ruffer.co.uk/ric
The table on page 66 sets out the number of Committee meetings
held during the year ended 30 June 2025 and the number of such
meetings attended by each Committee member.
Audit and Risk Committee
The Company has established an Audit and Risk Committee (ARC),
with formally delegated duties and responsibilities within written
terms of reference. The ARC is comprised of the entire Board and
is chaired by Susie Farnon. The ARC meets formally at least three
times a year.
A report of the ARC detailing responsibilities and activities is
presented on pages 74 to 77.
Management Engagement Committee
The Company has established a Management Engagement
Committee (MEC), with formally delegated duties and
responsibilities within written terms of reference. The MEC is
comprised of the entire Board and is chaired by Shelagh Mason.
The MEC meets annually in June each year and holds ad hoc
meetings to address any arising issues as required.
The principal duties of the Committee are to review the
performance of and contractual arrangements with the Investment
Manager and all other key service providers to the Company (other
than the Auditor).
During the year the Committee has reviewed the services provided
by its service providers, and recommended that the continuing
appointments of the Company’s Investment Manager and other
service providers were in the best interests of the Company. The
last meeting was held on 3 June 2025.
A report of the MEC detailing responsibilities and activities during
the year is presented on pages 78 to 79.
Nomination Committee
The Board does not have a separate Nomination Committee,
as the Board believes that the functions of such a committee are
best fulfilled by the whole Board as part of its regular business.
Any proposals for the appointment of a new Director or succession
planning are discussed and approved by the Board. The Board will
determine whether an external search consultancy is used in the
appointments of future Non-Executive Directors.
Remuneration Committee
In view of its non-executive and independent nature, the Board
considers that it is not appropriate to have a Remuneration
Committee as anticipated by the UK Code because this function is
carried out as part of the regular Board business. A remuneration
report prepared by the Board is presented on pages 72 to 73.
Internal control
The Company’s risk exposure and the effectiveness of its risk
management and internal control systems are reviewed by the Audit
and Risk Committee at its meetings and annually by the Board.
The Board is responsible for establishing and maintaining the
Company’s system of internal controls and for maintaining and
reviewing its effectiveness. The system of internal controls is
designed to manage rather than to eliminate the risk of failure
to achieve business objectives and as such can only provide
reasonable, but not absolute, assurance against material
misstatement or loss. These controls aim to ensure that assets
of the Company are safeguarded, proper accounting records are
maintained and the financial information for publication is reliable.
The Board has a risk governance framework which is designed to
identify, evaluate and mitigate the risks identified. Within this risk
governance framework, the Board and Audit and Risk Committee
regularly review the register of principal risks.
The Board has contractually delegated to external parties various
functions as listed below. The duties of investment management,
administration and custody are segregated. Each of the contracts
entered into with the parties was entered into after full and proper
consideration by the Board of the quality and cost of services
offered, including the control systems in operation as far as they
relate to the affairs of the Company.
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Overview
The Board, together with the Audit and Risk Committee, considers
on an ongoing basis the process for identifying, evaluating and
managing any significant risks faced by the Company. The process
includes reviewing reports from the Company Secretary on risk
control and compliance, in conjunction with the Investment
Manager’s regular reports which cover investment performance.
Investment and portfolio risk management is provided by Ruffer
AIFM Limited (a company authorised by the FCA), which delegates
these functions to Ruffer LLP.
Administration, accounting and company secretarial duties are
performed by Apex Fund and Corporate Services (Guernsey)
Limited
1
(formerly Sanne Fund Services (Guernsey) Limited),
a company licensed and regulated by the Guernsey Financial
Services Commission.
CREST agency functions are performed by Computershare Investor
Services (Jersey) Limited, a company licensed and regulated by the
Jersey Financial Services Commission.
Depositary services are performed by Northern Trust (Guernsey)
Limited, a company licensed and regulated by the Guernsey
Financial Services Commission.
Custodial services are provided by Northern Trust (Guernsey)
Limited, a company licensed and regulated by the Guernsey
Financial Services Commission.
Sponsorship and brokering services are provided by Investec Bank
plc, a firm which is authorised and regulated by the FCA.
The Board reviews regularly the performance of the service
providers. The Auditor is reviewed by the ARC and the other
service providers by the MEC, as described in the MEC report on
pages 78 to 79.
The Board meets formally with the Investment Manager quarterly
to review the performance of the investments in the light of the
Company’s investment objectives, and the Investment Manager’s
position against its peers. The Board also conducts an annual
visit to the offices of Ruffer LLP to meet with certain of the senior
executives in the firm and to review such matters as Ruffer’s
business, product, marketing and personnel strategies, so far as
they affect the Company; portfolio risk analysis; and integration
of ESG into portfolio construction. The last such visit took place in
September 2025.
The Board receives and reviews quarterly reports from the
Investment Manager, the AIFM and the Administrator. The MEC
conducted an annual review of all key service providers in June
2025, which was communicated to the Board and included a
detailed assessment of their performance along with completion
of a questionnaire by each service provider regarding key areas
including their control environment, business continuity, cyber
security arrangements and response to ESG, as further disclosed
in the MEC report on pages 78 and 79.
In common with most investment companies, the Company
does not have an internal audit function. All of the Company’s
management functions are delegated to the Investment Manager
and Administrator which have their own internal compliance and
risk assessment functions. As such, an internal audit function
specific to the Company is therefore considered unnecessary,
as explained on page 77.
Principal risks and uncertainties
Principal risks and uncertainties are disclosed on pages 51 to 55.
1 Effective 31 January 2025, Sanne Fund Services (Guernsey) Limited completed an amalgamation of corporate bodies pursuant to Part VI of the Companies (Guernsey)
Law, 2008 with Apex Fund and Corporate Services (Guernsey) Limited (the ‘Amalgamation’). As a result of the Amalgamation, the name of the Administrator changed
to Apex Fund and Corporate Services (Guernsey) Limited. There are no further material changes arising from the Amalgamation and all pre-existing contractual
arrangements in place between the Company and the Administrator remain in force
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Anti-bribery and corruption
The Board acknowledges that the Company’s international
operations may give rise to possible claims of bribery and
corruption. In consideration of The Bribery Act 2010, enacted in
the UK, at the date of this report the Board had conducted a review
of the perceived risks to the Company arising from bribery and
corruption to identify aspects of business which may be improved
to mitigate such risks. The Board has adopted a zero-tolerance
policy towards bribery and has reiterated its commitment to carry
out business fairly, honestly and openly.
Criminal Finances Act
The Board has a zero-tolerance commitment to preventing persons
associated with it from engaging in criminal facilitation of tax
evasion and will not work with any service provider who does not
demonstrate the same commitment. The Board has satisfied itself
in relation to its key service providers that they have reasonable
provisions in place to prevent the criminal facilitation of tax
evasion by their own staff or any associated persons.
UK Modern Slavery Act
The Board acknowledges the requirement to provide information
about human rights in accordance with the UK Modern Slavery
Act. The Board conducts the business of the Company ethically
and with integrity, and has a zero-tolerance policy towards modern
slavery in all its forms. As the Company has no employees, all its
Directors are non-executive and all its functions are outsourced,
there are no further disclosures to be made in respect of employees
and human rights.
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Overview
Directors are remunerated in the form of fees, payable quarterly in arrears, to the Director personally. The annual fees paid to each Director
during the year are shown below.
30 June 2025
£
30 June 2024
£
Nicholas Pink (Chair with effect from 10 December 2024, previously SID) 65,022 47, 250
Susie Farnon (Chair of the Audit and Risk Committee) 58,000 53,000
Shelagh Mason (Chair of the Management Engagement Committee) 52,000 46,750
Solomon Soquar (SID with effect from 10 December 2024) 51,910 43,500
Colleen McHugh (appointed 1 June 2024) 48,000 3,625
Christopher Russell (Chair until retirement on 10 December 2024) 31,113 65,000
306,045 259,125
Remuneration policy
Remuneration policy is set by the Board within a fee cap agreed
by shareholders. There is no remuneration committee, there are
no performance fees, and no additional one-off fees are paid to
Directors for extra time involved. However, the posts of Company
Chair, Senior Independent Director and the Chairs of Committees
do command extra annual remuneration. Some of the work which
is typically supported by groups with a stable of investment
companies falls to the Audit and Risk Committee and to the
Board, which has also been actively engaged separately with the
Investment Manager, Broker and shareholders. The objectives
of the remuneration policy set by the Board are simplicity,
transparency, competitiveness and fairness, especially in real
(inflation-adjusted) terms. The Board has agreed to an independent
review of remuneration at least every three years, with a view to
reviewing the cap on the annual total Directors’ remuneration to be
proposed and voted on by shareholders in an ordinary resolution.
No Director has a service contract with the Company but each of
the Directors is appointed by a letter of appointment which sets
out the main terms of their appointment. Directors hold office until
they retire or cease to be a Director in accordance with the Articles
of Incorporation or by operation of law.
Remuneration
The Directors of the Company are remunerated for their services at
such a rate as the Directors determine provided that the aggregate
amount of such fees does not exceed £390,000 (30 June 2024:
£300,000) per annum.
Directors’ remuneration report
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No Directors’ fees remained payable at the year end (30 June 2024: £nil). No additional remuneration has been paid to Directors outside
their normal fees and expenses. The charge for the year is higher than the prior year due to the Board receiving an annual fee increase and
having operated with six members for over five months of the year.
During the first quarter of 2024, the Board reviewed the Directors’ fees against the recommendations of a Non-Executive Director (NED) fee
review conducted by Trust Associates (TA) and noted that the fees paid to the Directors were below the average for all UK investment companies
with market capitalisations over £500 million, and well below the equivalent fees paid to directors of Channel Island companies. The Directors
determined to implement the recommendations of the TA report in relation to the years ended 30 June 2024 and 30 June 2025. The changes to
Director fees during the 2024/2025 financial year are detailed in the table above.
The fee cap was raised to £390,000 in December 2024. This was to cover the implementation of the balance of the independent fee review by
TA for the year ended 30 June 2025; the potential for further fee inflation in 2025/2026 and 2026/2027; and any temporary increases in a
given year to cover the parallel running of any recruitment to the Board, although it is not the intention of the Board to increase the number
of Directors, which reverted to five in 2024/2025.
The changes to the fee cap and Directors’ fees were detailed in the AGM notice in November 2024 and both the revised fee cap and
the Directors’ remuneration policy were approved by shareholders at the December 2024 AGM.
The fees applicable for each role on the Board for the prior, current and forthcoming financial years are detailed in the following table.
Role
Year ending
30 June 2026
Year ending
30 June 2025
Year ending
30 June 2024
Chair 75,250 72,000 65,000
Chair of Audit and Risk Committee 60,500 58,000 53,000
Chair of Management Engagement Committee 54,200 52,000 46,750
SID 55,250 53,000 47, 250
Director 50,000 48,000 43,500
Total 295,200 283,000 255,500
For the 2025/2026 financial year, the Board resolved that the basic fee be increased by 4.2% in nominal terms, from £48,000 to £50,000 per
annum, effective 1 July 2025 (2024: 10.3% in nominal terms effective 1 July 2024). Additional fees were also increased as follows
– serving as Chair of the Board: fee increased from £24,000 to £25,250 (2024/2025 financial year: £21,500 to £24,000)
– serving as Chair of the Audit and Risk Committee: fee increased from £10,000 to £10,500 (2024/2025 financial year: £9,500 to £10,000)
– serving as Senior Independent Director: fee increased from £5,000 to £5,250 (2024/2025 financial year: £3,750 to £5,000)
– serving as Chair of the Management Engagement Committee: fee increased from £4,000 to £4,200 (2024/2025 financial year: £3,250 to
£4,000).
The total annual fees for the 2025/2026 financial year represent a 4.3% increase from 2024/2025.
Nicholas Pink
Chair
30 September 2025
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Ruffer Investment Company Limited
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Overview
Susie Farnon Chair, Audit and Risk Committee
The Audit and Risk Committee presents here its report for the
year ended 30 June 2025, setting out the responsibilities of the
Committee and its key activities during the year. As in previous
years, the Committee has reviewed the Company’s financial
reporting, the independence and effectiveness of the Auditor
and the internal control and risk management systems of service
providers. In order to assist the Committee in discharging these
responsibilities, regular reports are received from the Investment
Manager, Administrator and Auditor.
Members of the Committee will continue to be available at each
AGM to respond to any shareholder questions on its activities
and reports.
Responsibilities
The Committee reviews and recommends to the Board the
Financial Statements of the Company and is the forum through
which the Auditor reports to the Board of Directors.
The role of the Committee includes
– monitoring and reporting to the Board on such matters as the
integrity of the Financial Statements of the Company and any
formal announcements relating to the Company’s financial
performance, and any significant financial reporting judgements
– providing advice to the Board on whether the Financial
Statements of the Company are fair, balanced and
understandable, and provide the information necessary for
shareholders to assess the Company’s position and performance
– considering the appropriateness of accounting policies and
practices including critical estimates and judgement areas
– reviewing and considering the AIC Code, the UK Code and
FRC Guidance on Audit Committees
– monitoring and reviewing the quality, effectiveness and
independence of the Auditor and the effectiveness of the audit
process, considering and making recommendations to the
Board on the appointment, reappointment, replacement and
remuneration of the Company’s Auditor
– developing and implementing policy on the engagement of
the Auditor to provide non-audit services
Audit and Risk Committee report
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– reviewing the Company’s procedures for prevention, detection
and reporting of fraud, bribery and corruption
– monitoring and reviewing the internal control and risk
management systems of the Company and its service providers,
including review of the risk framework and risk matrix and
identification of principal and emerging risks
– considering the need for an internal audit function and
– reporting to the Board on how it has discharged its
responsibilities.
The Committee’s full terms of reference are available on the
Company’s website at ruffer.co.uk/ric
Key activities
The following sections discuss the assessments made by the
Committee during the year.
Financial reporting
The Committee’s review of the Unaudited Half Yearly Financial
Report, Unaudited Investment Manager’s Year End Review and
the Annual Report and Audited Financial Statements focused
on the significant risk relating to the valuation and ownership
of investments. The investments comprise the majority of the
Company’s NAV and hence form part of the key performance
indicator (KPI) NAV per share. Hence any significant error in
valuation or misstatement of holdings could materially impact the
NAV and hence the reported NAV per share of the Company.
Valuation of investments
The Company’s investments had a fair value of £848,895,542 as
at 30 June 2025 (30 June 2024: £1,004,731,917) and represented
the majority of the net assets of the Company. The investments
are predominantly listed, except for investments in unlisted
investment funds.
The valuation of investments as at 30 June 2025 is in accordance
with the requirements of IFRS. The Committee considered
the fair value of the investments held by the Company as at
30 June 2025 to be reasonable based on information provided
by the Investment Manager and Administrator. All prices are
confirmed to independent pricing sources as at 30 June 2025
by the Administrator and are subject to a review process at
the Administrator and oversight at the Investment Manager.
The Committee also notes the work of the Auditor on these
balances as set out in their report on pages 82 to 87.
The Committee considered the classification of the Company’s
investments within the levels of the fair value hierarchy in
accordance with the requirements of IFRS 9, most notably the
classification of the Company’s holding in the Ruffer Illiquid
Multi-Strategies Fund, which represents approximately 7.1%
(2024: 6.9%) of the Company’s NAV. The Committee was
comfortable that this investment should be classified within
Level 2 of the hierarchy, as the Investment Manager creates a
sufficient market for the shares.
Ownership of investments
The Company’s investment holdings are reconciled to independent
reports from the Custodian by the Administrator, with any
discrepancies being fully investigated and reconciled by the
Administrator. The Committee satisfied itself, based on reviews
of information provided by the Custodian, Depositary and
Administrator, that the holdings of investments are correctly
recorded.
Investment income and realised and unrealised gains and losses
on investments
The Committee has considered the risk that these items may
be materially mis-stated, which could impact the reporting of
the performance of the Company in any accounting period. The
Committee is satisfied that the controls around the recording and
calculations for these items and the reconciliation of cash and
investment holdings are sufficiently robust to satisfactorily mitigate
this risk.
Risk management
The Committee considered the process for managing the risk of the
Company and its service providers. Risk management procedures
for the Company, as detailed in the Company’s risk governance
framework, were reviewed and approved by the Committee.
Regular reports are received from the Investment Manager and
Administrator on the Company’s risk evaluation process and
reviews. The Committee’s risk framework allocates the identified
principal risks into five risk categories. Please refer to the strategic
report on pages 51 to 55 for details on the principal risks and
uncertainties and their management. Financial risks faced by the
Company are discussed in note 19 of the Financial Statements on
pages 104 to 114.
The Company’s AIFM, Ruffer AIFM Limited, has responsibilities in
law in relation to risk management under the AIFMD.
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Fraud, bribery and corruption
The Committee continues to monitor the fraud, bribery and
corruption policies of the Company. The Board receives a
confirmation from all service providers that there have been no
instances of fraud, bribery or corruption.
The Auditor
In May 2024, in accordance with the FRC’s Audit Committees and
the External Audit: Minimum Standard (the ‘Minimum Standard’),
the Audit and Risk Committee entered into a competitive audit
tender process, as the then incumbent Auditor, Deloitte LLP, had
been in post since 2015. Four audit firms were invited to tender,
of which three submitted formal tenders and presented these
tenders to the Audit and Risk Committee in person. All tenders
were given fair and objective consideration by the Audit and Risk
Committee, who selected two of the three candidates to make
formal presentations to the Board. Following the candidates’ final
presentations to the Board, the Board determined that Deloitte LLP
should be reappointed as the Company’s Auditor. The Company
intends to conduct a tender process at least every ten years and
to rotate auditor at least every 20 years, as recommended by the
Minimum Standard and the UK Statutory Auditors and Third
Country Auditors Regulations 2016.
Independence, objectivity and fees
The independence and objectivity of the Auditor is reviewed by
the Committee, which also reviews the terms under which the
Auditor is appointed to perform non-audit services. The Committee
has established pre-approval policies and procedures for the
engagement of Deloitte LLP to provide audit, assurance and tax
services. The Auditor may not provide a service which
– places them in a position to audit their own work
– creates a mutuality of interest
– results in the Auditor developing close relationships with service
providers of the Company
– results in the Auditor functioning as a manager or employee of
the Company or
– puts the Auditor in the role of advocate of the Company.
The Committee takes into account relevant ethical and regulatory
guidance regarding the provision of non-audit services by the
Auditor, and will report to the Board to identify any matters
in respect of which it considers that action or improvement is
needed, and to make recommendations as to the steps to be
taken. The Board maintains a non-audit services policy which is
reviewed periodically and is available on the Company’s website
at ruffer.co.uk/ric
The following table summarises the remuneration paid to the
Auditor for audit and non-audit services during the years ended
30 June 2025 and 2024.
30 June 2025
£
30 June 2024
£
Audit services – statutory audit 83,800 79,800
Non-audit services – interim review 23,500 22,400
Total audit and non-audit-related fees 107, 300 102,200
No tax or other services were provided by the Auditor during
the year.
Deloitte LLP also has safeguards in place to ensure objectivity
and independence.
When considering the effectiveness and independence of the
Auditor, and the effectiveness of the audit process, the Committee
meets regularly with the Auditor to discuss the audit plan and the
scope of the audit. The Committee also takes account of factors
such as
– the audit plan presented to them before each audit
– the post-audit report including variations from the original plan
– changes in audit personnel
– the Auditor’s own internal procedures to identify threats to
independence and
– feedback from both the Investment Manager and Administrator
evaluating the performance of the team.
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The Committee has examined the scope and results of the audit,
its cost effectiveness and the independence and objectivity of
the Auditor, with particular regard to non-audit fees, and is
satisfied that an effective audit has been completed with diligence
and professional scepticism, that the scope of the audit was
appropriate, and significant judgements have been challenged
robustly. It also considers Deloitte LLP, as Auditor, to be
independent of the Company.
Internal control and risk management systems
The Committee discussed with the Auditor the risk of misstatement
in the Financial Statements arising from the potential for the
Company’s key service providers, the Investment Manager and
Administrator, to override controls.
At each quarterly Board meeting, compliance reports are provided
by the Administrator and the Investment Manager. The Board also
receives confirmation from the Administrator and the Investment
Manager of their capabilities under their ISAE 3402 Type II audit
reports, which relate to the effectiveness of the entity’s internal
controls and procedures. In the prior year, the Administrator’s
report for the year ended 30 September 2024 was qualified on
certain matters, however these matters have been addressed and
remediated and the most recent report, covering the period from
March to June 2025, was clean.
Under its risk governance framework, the Board reviews its risk
register, which includes a specifically identified principal risk
relating to the internal controls of service providers, on a quarterly
basis. In addition, the MEC conducts a formal review of all key
service providers on an annual basis, including a review of any
known internal control weaknesses, which are discussed with the
service provider to ensure matters are resolved expeditiously.
The Committee has reviewed the need for an internal audit
function. The Committee is satisfied that the systems and
procedures employed by the Investment Manager and the
Administrator provide sufficient assurance that a sound system of
internal control is maintained. An internal audit function specific
to the Company is therefore considered unnecessary.
For any questions on the activities of the Committee not addressed
in the foregoing, members of the Committee will attend each AGM
to respond to such questions.
In finalising the Financial Statements for recommendation to
the Board for approval, the Committee has satisfied itself that
the Financial Statements taken as a whole are fair, balanced
and understandable, and provide the information necessary for
shareholders to assess the Company’s performance, business model
and strategy.
Susie Farnon
Chair, Audit and Risk Committee
30 September 2025
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Overview
Shelagh Mason Chair, Management Engagement Committee
The Management Engagement Committee presents here its report
for the year ended 30 June 2025, setting out the responsibilities of
the Committee and its key activities for the year. The Committee
meets annually in June each year and holds ad hoc meetings to
address any arising issues as required.
Responsibilities
The formally delegated duties and responsibilities of the Committee
are set out in written terms of reference which are available
from the Company Secretary upon request and published on the
Company’s website at ruffer.co.uk/ric. The Committee’s terms of
reference are reviewed on an annual basis.
The principal duties of the Committee are to review the
performance of and contractual arrangements with the Investment
Manager and all other key service providers to the Company,
other than the Auditor which is reviewed by the Audit and Risk
Committee. In addition, the Committee is involved in monitoring
and reviewing the level of remuneration of the Investment Manager
to ensure that it is appropriate, competitive and sufficient to
incentivise the Investment Manager.
Key activities
The Committee conducts an annual review of the performance
of, and contractual relationships with, the Company’s key
service providers, including the Investment Manager. To
facilitate this review, the Company Secretary circulates two
detailed questionnaires to each service provider: one relating
to an assessment of the services provided during the year, any
issues encountered and feedback on other service providers;
and a second requesting details of the service provider’s internal
control systems, business continuity plans, succession planning
and any key staff changes, ESG policies and cyber security
arrangements. In addition, qualitative feedback on the performance
and operations of each service provider is obtained from each
of the Directors, the Investment Manager, the Broker and the
Company Secretary. The Company Secretary prepares a summary
of responses received which is presented to the Committee for
its review.
Management Engagement Committee report
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The last Committee meeting was held on 3 June 2025 and no
material issues were identified as a result of the annual service
provider review. Accordingly, the Management Engagement
Committee recommended to the Board that the retention of the
Company’s service providers was in the best interests of the
Company and its shareholders.
No material issues were identified during the Committee’s review
of the Investment Manager and the Board concluded that the
Investment Manager had deep industry experience, an appropriate
investment strategy for the investment objectives of the Company
and that the continued appointment of the Investment Manager
on the terms agreed, including management fees, was in the best
interests of the Company and its shareholders.
Shelagh Mason
Chair, Management Engagement Committee
30 September 2025
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Ruffer Investment Company Limited
Annual Report 2025
Overview
Northern Trust (Guernsey) Limited has been appointed as
Depositary to Ruffer Investment Company Limited (the ‘Company’)
in accordance with the requirements of Article 36 and Articles
21(7), (8) and (9) of the Directive 2011/61/EU of the European
Parliament and of the Council of 8 June 2011 on Alternative
Investment Fund Managers and amending Directives 2003/41/EC
and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU)
No 1095/2010 (the ‘AIFM Directive’).
We have enquired into the conduct of Ruffer AIFM Limited (the
‘AIFM’) and the Company for the year ended 30 June 2025, in our
capacity as Depositary to the Company.
This report, including the review provided below, has been
prepared for and solely for the shareholders in the Company. We do
not, in giving this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown.
Our obligations as Depositary are stipulated in the relevant
provisions of the AIFM Directive and the relevant sections of
Commission Delegated Regulation (EU) No 231/2013 (collectively
the ‘AIFMD legislation’) and the Authorised Closed-ended
Investment Schemes Rules and Guidance 2021.
Amongst these obligations is the requirement to enquire into the
conduct of the AIFM and the Company and their delegates in each
annual accounting period.
Our report shall state whether, in our view, the Company has been
managed in that period in accordance with the AIFMD legislation.
It is the overall responsibility of the AIFM and the Company to
comply with these provisions. If the AIFM, the Company or their
delegates have not so complied, we as the Depositary will state why
this is the case and outline the steps which we have taken to rectify
the situation.
The Depositary and its affiliates are or may be involved in other
financial and professional activities which may on occasion
cause a conflict of interest with its roles with respect to the
Company. The Depositary will take reasonable care to ensure
that the performance of its duties will not be impaired by any
such involvement and that any conflicts which may arise will be
resolved fairly and any transactions between the Depositary and
its affiliates and the Company shall be carried out as if effected on
normal commercial terms negotiated at arm’s length and in the
best interests of shareholders.
Basis of Depositary review
The Depositary conducts such reviews as it, in its reasonable
discretion, considers necessary in order to comply with
its obligations and to ensure that, in all material respects,
the Company has been managed (i) in accordance with the
limitations imposed on its investment and borrowing powers
by the provisions of its constitutional documentation and the
appropriate regulations and (ii) otherwise in accordance with the
constitutional documentation and the appropriate regulations.
Such reviews vary based on the type of Fund, the assets in which a
Fund invests and the processes used, or experts required, in order
to value such assets.
Review
In our view, the Company has been managed during the period,
in all material respects
i in accordance with the limitations imposed on the investment
and borrowing powers of the Company by the constitutional
documents; and by the AIFMD legislation and
ii otherwise in accordance with the provisions of the constitutional
documents; and the AIFMD legislation.
For and on behalf of
Northern Trust (Guernsey) Limited
30 September 2025
Depositary report
to the shareholders of Ruffer Investment Company Limited
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Financial
Statements
What’s in this section?
Independent Auditor’s report to the members of the Company 82
Statement of financial position 88
Statement of comprehensive income 89
Statement of changes in equity 90
Statement of cash flows 91
Notes to the Financial Statements 92
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Overview
Report on the audit of the
financial statements
1. Opinion
In our opinion the financial statements of Ruffer Investments
Company Limited (the ‘company’):
– give a true and fair view of the state of the company’s affairs
as at 30 June 2025 and of its profit for the year then ended;
– have been properly prepared in accordance with IFRS
Accounting Standards as issued by the International
Accounting Standards Board (IASB);
– have been prepared in accordance with the requirements of
the Companies (Guernsey) Law, 2008.
We have audited the financial statements which comprise:
– the Statement of Financial Position;
– the Statement of Comprehensive Income;
– the Statement of Changes in Equity;
– the Statement of Cash Flows; and
– the related notes 1 to 21
The financial reporting framework that has been applied in their
preparation is applicable law, and IFRS Accounting Standards as
issued by the IASB.
2. Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
auditor’s responsibilities for the audit of the financial statements
section of our report.
We are independent of the company in accordance with the
ethical requirements that are relevant to our audit of the financial
statements in the UK, including the Financial Reporting Council’s
(the ‘FRC’s’) Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. The non-audit services
provided to the company for the year are disclosed in note 9 to the
financial statements. We confirm that we have not provided any
non-audit services prohibited by the FRC’s Ethical Standard to
the company.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters The key audit matter that we identified in the
current year (and which was consistent with
the prior year) was valuation and ownership of
investments.
Materiality The materiality that we used in the current year was
£8.9 million which was determined on the basis of
1% of Net Asset Value (NAV) of the Company as at
30June 2025.
Scoping Balances were scoped in for testing based on our
assessment of risk of material misstatement. As
part of our risk assessment process, we considered
the impact of relevant controls implemented at the
service providers.
Significant
changesin our
approach
There were no significant changes to our approach
compared with the prior year.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the company’s ability
to continue to adopt the going concern basis of accounting included:
– considering the effect of current macroeconomic conditions to
the Company and valuation of its portfolio;
– evaluating the judgements and decisions with regards to key
forecasting assumptions used in the going concern assessment;
– assessing reasonableness of assumptions on expenditure
projections for the next three years, used in supporting the use
of the going concern assumption; and
– assessing the appropriateness of the going concern disclosures
in the financial statements.
Independent Auditor’s report
to the members of Ruffer Investment Company Limited
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
In relation to the reporting on how the company has applied the UK Corporate Governance Code, we have nothing material to add or draw
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt
the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of
the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified.
These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
5.1. Valuation and ownership of investments
Key audit matter
description
Included in the Company’s Statement of Financial Position as at 30 June 2025 are investments with a fair value of
£849million (2024: £1 billion) as disclosed in Note 10 to the financial statements. TheCompany’s portfolio primarily
comprises equity investments, government bonds and investment funds. Investments are key area of focus to the users of
the financial statements given that they are the mostquantitatively significant balance and main driver of the Company’s
performance and NAV. As explained in Notes 2 (e) and 3, the Company’s accounting policy is to measure its investment
at fair value through profit and loss. Refer to consideration made by the audit committee on valuation and ownership
ofinvestments discussed on page 75.
The identified risks were:
– there might be errors or fraudulent manipulation of valuation in order increase the NAV and to report favourable key
performance indicators;
– inappropriate exchange rates might be used to convert foreign currency denominated investment to theCompany’s
reporting currency;
– trades made immediately before year end might be excluded from the valuation or conversely, tradesmade
immediately after the year end might be included in the valuation in error; and
– the Company might not have legal title to the investment held at year end.
How the scope of our
auditresponded tothe
keyaudit matter
To respond to the key audit matter, we have performed the following audit procedures:
– obtained an understanding of and tested the relevant controls around the valuation and ownership of investments
and NAV preparation process by the administrator;
– agreed investments held as at year end to independently obtained custodian confirmation;
– assessed the reasonableness of exchange rates used in converting investments denominated in currencies other than
the Pound Sterling by comparing rates used to independent sources;
– assessed purchases and sales made around year end to determine whether transactions had been recorded in the
correct period;
– reconciled the investment purchases and sales transactions to the custodian trade report for the year; and
– agreed the unit prices of all investments to independent pricing sources.
– Assessed the appropriateness of the investments related disclosures included in the financial statements
Key observations Based on the work performed, we concluded that the valuation and ownership of investments are appropriate, specifically:
– the prices applied by management in the valuation of investments are reasonable;
– investments denominated in currencies other than Pound Sterling have been appropriately converted at a reasonable
spot rate at year end;
– the Company had proper legal title to the investments held at year end; and
– the investment transactions have been accounted for in the correct accounting period.
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Overview
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the
financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed
or influenced. We use materiality both in planning the scope of our
audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality
for the financial statements as a whole as follows:
Materiality £8,881,000 (2023: £10,197,000)
Basis for
determining
materiality
1% (2024: 1%) of NAV
Rationale for the
benchmark applied
NAV is the most appropriate benchmark as it is
considered the principal driver for members of the
Company in assessing financial performance and
represents total shareholders’ interest.
Net Asset Value
£888,196,005
Materiality
£8,881,000
Audit Committee
reporting threshold
£444,050
Net Asset Value
Materiality
6.2. Performance materiality
We set performance materiality at a level lower than materiality
to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial
statements as a whole. Performance materiality was set at 70%
of materiality for the 2025 audit (2024: 70%). In determining
performance materiality, we considered the following factors:
a the quality of the control environment and whether we were
able to rely on controls,
b our risk assessment, including our assessment of the Company’s
overall control environment; and
c our past experience of the audit, which has indicated a low
number of corrected and uncorrected misstatements identified
in prior periods.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to
the Committee all audit differences in excess of £444,050 (2024:
£509,000), as well as differences below that threshold that, in our
view, warranted reporting on qualitative grounds. We also report to
the Audit Committee on disclosure matters that we identified when
assessing the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Scoping
Our audit was scoped by obtaining an understanding of the
Company and its environment, including internal control, and
assessing the risks of material misstatement. Audit work to respond
to the risks of material misstatement was performed directly by the
audit engagement team.
7.2. Our consideration of the control environment
The Company is administered by a third-party Guernsey
regulated service provider. As part of our audit, we obtained an
understanding of and tested the relevant controls around the
valuation and ownership of investments and NAV preparation
process established at the service provider.
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7.3. Our consideration of climate-related risks
As part of our audit we made enquiries of management to
understand the process they have adopted to assess the potential
impact of climate change on the financial statements. Management
considers that the impact of climate change does not give rise to
a material financial statement impact as described on page 50.
We used our knowledge of the Company to evaluate management’s
assessment. We also read the annual report to consider whether
the disclosures in relation to climate change made in the other
information within the annual report are materially consistent with
the financial statements and our knowledge obtained in our audit.
8. Other information
The other information comprises the information included in
the annual report other than the financial statements and our
auditor’s report thereon. The directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover the
other information and we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the course of the audit, or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required
to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement,
the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible
for assessing the company’s ability to continue as a going concern,
disclosing as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no
realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of
thefinancial statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
11. Extent to which the audit was considered capable
of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud
is detailed below.
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11.1. Identifying and assessing potential risks related to
irregularities
In identifying and assessing risks of material misstatement in
respect of irregularities, including fraud and non-compliance with
laws and regulations, we considered the following:
– the nature of the industry and sector, control environment and
business performance including the design of the company’s
remuneration policies, key drivers for directors’ remuneration,
bonus levels and performance targets;
– results of our enquiries of management, the directors and the
audit committee about their own identification and assessment
of the risks of irregularities, including those that are specific to
the company’s sector;
– any matters we identified having obtained and reviewed the
company’s documentation of their policies and procedures
relating to:
– identifying, evaluating and complying with laws and
regulations and whether they were aware of any instances of
non-compliance;
– detecting and responding to the risks of fraud and whether
they have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or
non-compliance with laws and regulations;
– the matters discussed among the audit engagement team and
relevant internal specialists, including financial instruments
specialists, regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the valuation
and ownership of investments. In common with all audits under
ISAs (UK), we are also required to perform specific procedures to
respond to the risk of management override.
We also obtained an understanding of the legal and regulatory
framework that the company operates in, focusing on provisions
of those laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this
context included the Companies (Guernsey) Law, 2008, the Listing
Rules and relevant tax legislation and the Protection of Investors
(Bailiwick of Guernsey) Law, 2020.
In addition, we considered provisions of other laws and regulations
that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the company’s
ability to operate or to avoid a material penalty.
11.2. Audit response to risks identified
As a result of performing the above, we identified valuation and
ownership of investments as a key audit matter related to the
potential risk of fraud. The key audit matters section of our report
explains the matter in more detail and also describes the specific
procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks
identified included the following:
– reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with provisions
of relevant laws and regulations described as having a direct
effect on the financial statements;
– enquiring of management and the Audit Committee concerning
actual and potential litigation and claims;
– performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
– reading minutes of meetings of those charged with governance,
and reviewing correspondence with the Guernsey Financial
Services Commission; and
– in addressing the risk of fraud through management override of
controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members including
Financial instruments specialists, and remained alert to any
indications of fraud or non-compliance with laws and regulations
throughout the audit.
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Report on other legal and
regulatory requirements
12. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in
relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the company’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
– the directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 56;
– the directors’ explanation as to its assessment of the
company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 56;
– the directors’ statement on fair, balanced and understandable
set out on page 63;
– the board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 52;
– the section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on pages 51 to 55; and
– the section describing the work of the audit committee set out
on pages 74 to 77.
13. Matters on which we are required to report
byexception
13.1. Adequacy of explanations received and accounting
records
Under the Companies (Guernsey) Law, 2008 we are required to
report to you if, in our opinion:
– we have not received all the information and explanations we
require for our audit; or
– proper accounting records have not been kept; or
– the financial statements are not in agreement with the
accounting records.
We have nothing to report in respect of these matters.
14. Other matters which we are required to address
14.1. Auditor tenure
Following the recommendation of the Audit Committee, we were
appointed by the Board on 19 March 2015 and were reappointed
following an audit tender in 2025 to audit the financial statements
for the year ending 30 June 2025 and subsequent financial periods.
The period of total uninterrupted engagement including previous
renewals and reappointments of the firm is 11 years, covering the
years ending 30 June 2015 to 30 June 2025.
14.2. Consistency of the audit report with the additional
report to the audit committee
Our audit opinion is consistent with the additional report to
the audit committee we are required to provide in accordance
with ISAs (UK).
15. Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Section 262 of the Companies (Guernsey)
Law, 2008. Our audit work has been undertaken so that we might
state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the
opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,
these financial statements will form part of the Electronic Format
Annual Financial Report filed on the National Storage Mechanism
of the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This
auditor’s report provides no assurance over whether the Electronic
Format Annual Financial Report has been prepared in compliance
with DTR 4.1.15R – DTR 4.1.18R.
Theo Brennand
For and on behalf of Deloitte LLP
Recognised Auditor
St Peter Port, Guernsey
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Ruffer Investment Company Limited
Annual Report 2025
Overview
Statement of financial position
as at 30 June 2025
Notes
30 June 2025
£
30 June 2024
£
Assets
Non-current assets
Investments at fair value through profit or loss 10 848,895,542 1,004,731,917
Current assets
Cash and cash equivalents 25,743,592 18,788,529
Trade and other receivables 11 15,412,976 3,518,082
Derivative financial assets 18, 19 3,879,825 36,246
Total current assets 45,036,393 22,342,857
Total assets 893,931,935 1,027,074,774
Liabilities
Current liabilities
Trade and other payables 12 5,451,748 3,967, 386
Derivative financial liabilities 18, 19 284,182 3,368,567
Total liabilities 5,735,930 7, 335,953
Net assets 888,196,005 1,019,738,821
Equity
Capital and reserves attributable to the Company’s shareholders
Share capital 13 569,613,046 723,100,329
Capital reserve 205,203,226 182,591,777
Retained revenue reserve 18,330,174 18,997,156
Other reserves 95,049,559 95,049,559
Total equity 888,196,005 1,019,738,821
Net assets attributable to holders of redeemable participating preference shares (per share) 14 2.9393 2.8489
The Financial Statements on pages 82 to 115 were approved on 30 September 2025 and signed on behalf of the Board of Directors by
Nicholas Pink Susie Farnon
Chair Director
The notes on pages 92 to 115 form an integral part of these Financial Statements.
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Statement of comprehensive income
for the year ended 30 June 2025
Year ended 30 June 2025 Year ended 30 June 2024
Notes
Revenue
£
Capital
£
Total
£
Revenue
£
Capital
£
Total
£
Fixed interest income 11, 505,861 — 11,505,861 14,517,892 — 14,517,892
Dividend income 9,166,917 — 9,166,917 7,067,029 — 7,067, 029
Bank interest income 469,735 — 469,735 877,3 38 — 877, 338
Net changes in fair value of
financial assets at fair value
through profit or loss 6 — 7,78 3, 264 7,783,26 4 — (2,886,852) (2,886,852)
Other net gains 7 — 24,680,530 24,680,530 — 3,248,799 3,248,799
Total income 21,142,513 32,463,794 53,606,307 22,462,259 361,947 22,824,206
Management fees 8 — (9,188,582) (9,188,582) — (10,314,509) (10,314,509)
Other expenses 9 (1,112,530) (434,792) (1,547, 322) (1,111,897) (586,342) (1,698,239)
Total expenses (1,112,530) (9,623,374) (10,735,904) (1,111,897) (10,900,851) (12,012,748)
Profit/(loss) for the year before tax 20,029,983 22,840,420 42,870,403 21,350,362 (10,538,904) 10,811,458
Withholding tax 4 (931,546) (228,971) (1,160,517) (643,704) — (643,704)
Profit/(loss) for the year after tax 19,098,437 22,611,449 41,709,886 20,706,658 (10,538,904) 10,167,754
Total comprehensive income/
(loss) for the year 19,098,437 22,611,449 41,709,886 20,706,658 (10,538,904) 10,167,754
Basic and diluted earnings/(loss)
per share 5.78p 6.83p 12.61p 5.48p (2.79)p 2.69p
The ‘Total’ columns of this statement represent the Company’s statement of comprehensive income, prepared in accordance with IFRS
Accounting Standards as issued by the IASB.
The revenue and capital return columns are prepared under guidance published by the Association of Investment Companies. All revenue
and capital items in the above statement derive from continuing operations.
Basic and diluted earnings per share are calculated by dividing the profit after taxation by the weighted average number of redeemable
participating preference shares in issue during the year. The weighted average number of shares for the year was 330,640,010 (30 June 2024:
377,895,332). As there are no items which would cause a dilution to occur, the basic and diluted earnings per share are the same.
The notes on pages 92 to 115 form an integral part of these Financial Statements.
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Overview
Statement of changes in equity
for the year ended 30 June 2025
Notes
Share
capital
£
Capital
reserve
£
Retained
revenue
reserve
1
£
Other
reserves
1
£
Total year ended
30 June 2024
£
Balance at 1 July 2024 723,100,329 182,591,777 18,997,156 95,049,559 1,019,738,821
Total comprehensive income for the year — 22,611,4 49 19,098,437 — 41,709,886
Transactions with shareholders
Share buybacks 13 (153,487,283) — — — (153,487,283)
Distributions during the year 5 — — (19,765,419) — (19,765,419)
Balance at 30 June 2025 569,613,046 205,203,226 18,330,174 95,049,559 888,196,005
Notes
Share
capital
£
Capital
reserve
£
Retained
revenue
reserve
1
£
Other
reserves
1
£
Total year ended
30 June 2024
£
Balance at 1 July 2023 791,710,799 193,130,681 12,149,296 95,049,559 1,092,040,335
Total comprehensive income for the year — (10,538,904) 20,706,658 — 10,167,75 4
Transactions with shareholders
Share buybacks 13 (68,610,470) — — — (68,610,470)
Distributions during the year 5 — — (13,858,798) — (13,858,798)
Balance at 30 June 2024 723,100,329 182,591,777 18,997,156 95,049,559 1,019,738,821
1 Under The Companies (Guernsey) Law, 2008, the Company can distribute dividends from share capital and reserves, subject to satisfying a solvency test. However, the
Company’s dividend policy is that dividends will only be paid from accumulated revenue reserves. In order to provide clearer information relating to reserves available
for distribution, the Company has separately identified this reserve in these Financial Statements as a ‘Retained revenue reserve’ in the Statement of Financial Position
and the Statement of Changes in Equity. ‘Other reserves’ represents amounts converted from share premium in 2004 and 2008
The notes on pages 92 to 115 form an integral part of these Financial Statements.
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Statement of cash flows
for the year ended 30 June 2025
Notes
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Cash flows from operating activities
Profit for the year after tax 41,709,886 10,167,754
Adjustments for
Net changes in fair value of financial assets at fair value through profit or loss 6 (7,783,26 4) 2,886,852
Other net gains 7 (24,680,530) (3,248,799)
Decrease/(increase) in trade and other receivables
(excluding amounts due in respect of sales ofinvestments) 627,010 (1,690,742)
Decrease in trade and other payables
(excluding amounts due in respect of purchases of investments and share buybacks) (117, 36 6) (83,703)
9,755,736 8,031,362
Net cash received on closure of forward foreign exchange contracts 7 17,409,446 9,772,589
Purchases of investments (1,032,982,030) (1,508,722,215)
Sales of investments 1,187,745,547 1,538,658,328
Net cash generated from operating activities 181,928,699 47,740,064
Cash flow from financing activities
Dividends paid 5 (19,765,419) (13,858,798)
Share buybacks (155,551,337) (65,906,777)
Net cash used in financing activities (175,316,756) (79,765,575)
Net increase/(decrease) in cash and cash equivalents 6,611,943 (32,025,511)
Cash and cash equivalents at the beginning of the year 18,788,529 50,508,224
Foreign exchange gains on cash and cash equivalents 7 343,120 305,816
Cash and cash equivalents at the end of the year 25,743,592 18,788,529
The notes on pages 92 to 115 form an integral part of these Financial Statements.
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Notes to the Financial Statements
for the year ended 30 June 2025
1 The Company
The Company was incorporated with limited liability in Guernsey
on 1 June 2004 as a company limited by shares and as an
authorised closed-ended investment company. As an existing
closed-ended fund, the Company is deemed to be granted an
authorised declaration in accordance with section 8 of the
Protection of Investors (Bailiwick of Guernsey) Law, 2020, as
amended and rule 6.02 of the Authorised Closed-ended Investment
Schemes Rules and Guidance 2021. The Company was admitted
to the premium segment of the Official List of the UK Listing
Authority on 20 December 2005 and is listed on the Main Market
of the London Stock Exchange (LSE).
The Company’s registered office is shown on page 126 and details of
its investment objective and policy are shown on page 47.
2 Material accounting policies
a Statement of compliance
With effect from 1 July 2024, the Company has elected to transition
from preparing its Financial Statements under IFRS as adopted by
the European Union to IFRS Accounting Standards as issued by the
IASB. This change constitutes a change in accounting framework.
However, there is no impact on recognition, measurement or
disclosure in the year as a result of the change in accounting
framework. Accordingly, the Financial Statements of the Company
for the year ended 30 June 2025 have been prepared in accordance
with IFRS Accounting Standards (IFRS) as issued by the IASB
and the Listing Rules of the London Stock Exchange in compliance
with the Companies (Guernsey) Law, 2008.
b Basis of preparation
The Financial Statements are prepared in pound sterling (£),
which is the Company’s functional and presentation currency.
The Financial Statements have been prepared on a going concern
basis under the historical cost convention, as modified by the
revaluation of financial assets and financial liabilities at fair value
through profit or loss.
c Going concern
The Directors believe that it is appropriate to continue to adopt the
going concern basis in preparing the Financial Statements since the
assets of the Company consist mainly of cash and cash equivalents
and securities which are readily realisable. The Directors also
note that overall, due to the nature of the Company’s portfolio,
which – as discussed in more detail in the Performance section of
the Chair’s statement and in the Investment Manager’s report –
comprises both equities and other more defensive assets, it has not
been affected significantly in terms of value or cash flows by the
effects of the conflicts in Ukraine and the Middle East, or by the
trade policies of the current US administration. Accordingly, in the
Directors’ opinion, the Company has adequate financial resources
to continue in operational existence for the foreseeable future.
d New accounting standards and amendments
effectiveand adopted
The following relevant standard has been applied in these
Financial Statements during the year
– IAS 1 (amended), ‘Presentation of Financial Statements’ –
(amendments regarding the classification of debt, effective for
accounting periods commencing on or after 1 January 2024)
In the opinion of the Directors, the adoption of this amended
standard has had no material impact on the Financial Statements
of the Company.
Standards and amendments in issue but not yet effective
The following relevant IFRSs, which have not been applied in these
Financial Statements, were in issue at the reporting date but not
yet effective
– IFRS 7 (amended), ‘Financial Instruments: Disclosures’ –
(effective for accounting periods commencing on or after
1 January 2026)
– IFRS 9 (amended), ‘Financial Instruments’ – (effective for
accounting periods commencing on or after 1 January 2026)
– IFRS 18, ‘Presentation and Disclosures in Financial Statements’
– (effective for accounting periods commencing on or after
1 January 2027)
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The amendments to IFRS 7 and IFRS 9 were published in
May 2024 and relate to the classification and measurement of
financial instruments.
IFRS 18 sets out requirements for the presentation and disclosure
of information in financial statements to help ensure they provide
relevant information that faithfully represents an entity’s assets,
liabilities, equity, income and expenses.
In addition, the International Sustainability Standards Board
(ISSB) published the following Sustainability Disclosure Standards
in June 2023, effective for accounting periods commencing on or
after 1 January 2024
– IFRS S1, ‘General Requirements for Disclosure of
Sustainability-related Financial Information’
– IFRS S2, ‘Climate-related Disclosures’
IFRS S1 sets out overall requirements with the objective to require
an entity to disclose information about its sustainability-related
risks and opportunities.
IFRS S2 sets out the requirements for identifying, measuring
and disclosing information about climate-related risks and
opportunities.
The purpose of both standards is to provide information that is
useful to primary users of general purpose financial reports in
making decisions relating to providing resources to the entity.
These standards have not been formally endorsed by Guernsey,
the UK or the EU and have therefore not yet been adopted by the
Company.
The Directors are currently assessing the impact that the adoption
of these new and amended standards in future periods will have on
the Financial Statements of the Company.
e Financial instruments
i Classification
Financial assets are classified into the following categories:
financial assets at fair value through profit or loss and financial
assets at amortised cost.
The classification depends on the nature and purpose of the
financial assets and is determined at the time of initial recognition.
The Company’s financial assets at fair value through profit or loss
comprise investment assets and derivative assets in the form of
forward foreign currency exchange contracts.
The Company’s financial assets at amortised cost comprise trade
and other receivables and cash and cash equivalents.
Financial liabilities are classified as either financial liabilities at fair
value through profit or loss or financial liabilities at amortised cost.
The Company’s financial liabilities at fair value through profit or
loss comprise derivative liabilities in the form of forward foreign
currency exchange contracts.
The Company’s financial liabilities at amortised cost comprise
trade and other payables.
ii Investments at fair value through profit or loss
(‘investments’)
Recognition
Investments are recognised in the Company’s Statement of
Financial Position when the Company becomes a party to the
contractual provisions of the instrument.
Purchases and sales of investments are recognised on the trade
date (the date on which the Company commits to purchase or sell
the investment). Investments purchased are initially recorded
at fair value, being the consideration given. Transaction or other
dealing costs associated with purchases and sales of investments
are recognised through profit or loss in the Statement of
Comprehensive Income.
Measurement
Subsequent to initial recognition, investments are measured
at fair value. Gains and losses arising from changes in the fair
value of investments and gains and losses on investments that
are sold are recognised through profit or loss in the Statement of
Comprehensive Income within net changes in fair value of financial
assets at fair value through profit or loss.
Investments traded in active markets are valued at the latest
available bid prices ruling at midnight on the reporting date. The
Directors are of the opinion that the bid-market prices are the
best estimate of fair value. Investments consist of listed or quoted
equities or equity-related securities, options and bonds which
are issued by corporate issuers, supra-nationals or government
organisations, and investment in funds.
Shares in some investment funds are not listed on an actively
traded exchange and these are valued on the reporting date at the
official NAV of each fund as reported by each fund’s independent
administrator at the reporting date, as the most recent price is the
best estimate of the amount for which holdings could have been
disposed of at the reporting date.
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Fair value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. Gains and losses arising
from changes in the fair value of financial assets/(liabilities)
are shown as net gains or losses on financial assets through
profit or loss (see note 10) and recognised in the Statement of
Comprehensive Income in capital in the period in which they arise.
Realised gains and losses arising on disposal of investments are
calculated by reference to the proceeds received on disposal and the
average cost attributable to those investments, and are recognised
in the Statement of Comprehensive Income in capital. Unrealised
gains and losses on investments are recognised in the Statement of
Comprehensive Income in capital.
iii Derivatives
Forward foreign currency contracts are treated as derivative
contracts and as such are recognised at fair value on the date on
which they are entered into and subsequently remeasured at their
fair value. Fair value is determined by rates in active currency
markets. All derivatives are carried as assets when fair value is
positive and as liabilities when fair value is negative. The gain or
loss on remeasurement to fair value is recognised immediately
through profit or loss in the Statement of Comprehensive Income in
capital within other gains in the period in which they arise.
iv Financial instruments at amortised cost
Trade and other receivables
Trade and other receivables are amounts due in the ordinary
course of business and are classified as current assets if collection
is expected in one year or less. If not, they are presented as non-
current assets. Trade and other receivables are recognised initially
at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment, such
impairment to be determined using the simplified expected credit
losses approach in accordance with IFRS 9.
At each reporting date, the Company measures the loss allowance
on its trade and other receivables at an amount equal to the lifetime
expected credit losses. Expected credit losses are estimated based
on the Company’s historical credit loss experience, adjusted for
factors that are specific to the financial asset, general economic
conditions and an assessment of both the current as well as the
forecast direction of conditions at the reporting date, including
the time value of money where appropriate.
Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash
equivalents are short-term, highly liquid investments with original
maturities of three months or less and bank overdrafts.
Trade and other payables
Trade and other payables are obligations to pay for services that
have been acquired in the ordinary course of business and are
classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade
and other payables are recognised initially at fair value plus any
directly attributable incremental costs of acquisition or issue
and subsequently measured at amortised cost using the effective
interest rate method.
v Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net
amount reported in the Statement of Financial Position if, and
only if, there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net
basis, or to realise assets and settle the liabilities simultaneously.
vi Derecognition of financial instruments
A financial asset is derecognised when: (a) the rights to receive
cash flows from the asset have expired; (b) the Company retains
the right to receive cash flows from the asset, but has assumed
an obligation to pay them in full without material delay to a third
party under a ‘pass through arrangement’; or (c) the Company has
transferred substantially all the risks and rewards of the asset,
or has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset.
A financial liability is derecognised when the obligation under the
liability is discharged, cancelled or expired.
f Income
The Company has no income that falls within the scope of IFRS 15,
therefore all income is recognised in accordance with IFRS 9.
Dividend income from equity investments is recognised when
the relevant investment is quoted ex-dividend, and is included
gross of withholding tax. Interest income is recognised for all debt
instruments using the effective interest rate method. Dividend
and interest income are recognised through profit or loss in the
Statement of Comprehensive Income in revenue.
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g Expenses
Expenses are accounted for on an accruals basis and are recognised
through profit or loss in the Statement of Comprehensive Income in
either capital or revenue reserves. The Company’s management fees
are allocated between capital and revenue in a ratio determined by
the Board at its sole discretion. Currently 100% of the management
fees are charged to capital, as are transaction costs on the purchase
and sale of investments. All other expenses of the Company are
recognised in revenue.
h Translation of foreign currency
Functional and presentation currency
The Financial Statements of the Company are presented in the
currency of the primary economic environment in which the
Company operates (its ‘functional currency’). The Directors have
considered the currency in which the original capital was raised,
distributions will be made and ultimately the currency in which
capital would be returned in a liquidation. On this basis, pound
sterling best represents the functional currency of the Company.
For the purpose of the Financial Statements, the results and
financial position of the Company are expressed in pound sterling,
which is the presentation currency of the Company.
Foreign currency transactions are translated into the functional
currency using the exchange rate prevailing at the transaction
date. Foreign exchange gains and losses resulting from the
settlement of such transactions and those from the translation
at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement
of Comprehensive Income.
Translation differences on non-monetary items such as financial
assets held at fair value through profit or loss are reported as part
of net changes in fair value on financial assets through profit or loss
in the Statement of Comprehensive Income.
i Share issue and buyback costs
Share issue and buyback costs are fully written off against the share
capital account in the period of the share issue in accordance with
Guernsey company law.
j Redeemable participating preference shares
As the Company’s redeemable participating preference shares are
redeemable at the sole option of the Directors, they are required
to be classified as equity instruments. Please refer to note 13 for
further details.
3 Significant accounting judgements, estimates
andassumptions
The preparation of the Financial Statements in conformity with
IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and the reported
amounts of assets and liabilities, income and expense and the
accompanying disclosures. Uncertainty about these assumptions
and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected
in future periods.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects
only that period, or in the period of revision and future periods if
the revision affects both current and future periods.
Judgements
In the opinion of the Directors, there are no significant judgements
made that have had a material effect on the Financial Statements.
Estimates
The Company records its investments and derivatives at fair value.
Investments classified in Level 1 of the fair value hierarchy (see note
19) are measured at fair value based on a quoted price in an active
market. However, the fair value of investments classified in Level 2
and Level 3 of the fair value hierarchy and of forward foreign
exchange contracts are determined at the valuation date on the
basis of estimates based on the reported NAVs of the investments
and prevailing exchange rates respectively. The Directors consider
that these valuations represent the best estimate of the fair values
of the Company’s Level 2 and Level 3 investments and derivatives.
Details of the valuation methodologies and assumptions applied
in determining the fair value of the Company’s investments and
derivatives, and sensitivities to those assumptions, are disclosed
in note 19.
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4 Taxation
The Company has been granted Exempt Status under the terms of The Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 to income
tax in Guernsey. Its liability is an annual fee of £1,600 (30 June 2024: £1,600).
The amounts disclosed as taxation in the Statement of Comprehensive Income relate solely to withholding tax deducted at source on income.
5 Dividends to shareholders
Dividends, if any, are declared semi-annually, usually in October and March each year. The Company paid and declared the following
dividends during the year.
Year ended
30 June 2025
£
Year ended
30 June 2024
£
2024 Second interim dividend of 3.10p (2023: 1.65p) 10,818,620 6,328,043
2025 First interim dividend of 2.85p (2024: 2.00p) 8,946,799 7,530,755
19,765,419 13,858,798
A second interim dividend of 3.35p per share in respect of the year ended 30 June 2025 was declared on 1 October 2025. The dividend is
payable on 24 October 2025 to shareholders on record at 10 October 2025.
6 Net changes in financial assets at fair value through profit or loss
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Gains realised on investments sold during the year 61,372,399 48,555,204
Losses realised on investments sold during the year (33,216,184) (69,180,967)
Net realised gains/(losses) on investments sold during the year (see note 10) 28,156,215 (20,625,763)
Movement in unrealised (losses)/gains arising from changes in fair value (20, 372,951) 17,738,911
Net changes in fair value on financial assets at fair value through profit or loss 7,78 3, 264 (2,886,852)
7 Other gains/(losses)
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Movement in unrealised gains/(losses) on spot and forward foreign exchange currency contracts 6,927,964 (6,829,606)
Net realised gains on spot and forward foreign currency contracts 17,409,446 9,772,589
Other realised and unrealised foreign exchange gains 343,120 305,816
24,680,530 3,248,799
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8 Management fees
The management fees were charged to the capital reserves of the Company. The management fees for the year, including outstanding
balances at the end of the year, are detailed below.
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Management fees for the year 9,188,582 10,314,509
Management fees payable at the end of the year 725,478 759,478
The basis for calculating the management fees is set out in the General information on page 125.
9 Other expenses
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Expenses charged to revenue
Administration fee
1
244,234 254,074
Directors’ fees 306,045 259,125
Custodian and Depositary fees
1
192,442 167,245
Broker’s fee 42,500 42,500
Audit fee 83,800 79,800
Auditor’s remuneration for interim review 23,500 22,400
Legal and professional fees 30,323 71,830
Registrar fees 68,715 77, 578
Directors and officers insurance 28,435 33,730
General expenses 92,536 103,615
1,112, 530 1,111,897
Expenses charged to capital
Investment transaction costs 434,792 586,342
Total other expenses 1, 547, 322 1,698,239
1 The basis for calculating the Administration fees, Custodian and Depositary fees is set out in the General information on page 125
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Ongoing charges ratio
The ongoing charges ratio (OCR) of an investment company is the annual percentage reduction in shareholder returns as a result of recurring
operational expenditure. Ongoing charges are classified as those expenses which are likely to recur in the foreseeable future, and which relate
to the operation of the Company, excluding investment transaction costs, financing charges and gains or losses on investments. The OCR is
calculated as the total ongoing charges for a period divided by the average net asset value over that period.
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Management fee (see note 8) 9,188,582 10,314,509
Other expenses (see above) 1, 547, 322 1,698,239
10,735,904 12,012,748
Excluded expenses
1
(454,691) (641,221)
Total ongoing expenses 10,281,213 11,371,527
Average NAV
2
957,383,70 4 1,068,272,008
Ongoing charges ratio (using AIC methodology) 1.07% 1.06%
1 Excluded expenses principally comprise security transaction costs and one‑off costs
2 Average NAV is calculated as the weighted average of all the NAVs published on the LSE during the year
10 Investments at fair value through profit or loss
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Cost of investments at the start of the year 1,014,111,944 1,064,658,652
Acquisitions at cost during the year 1,036,647,812 1,508,572,677
Disposals during the year (1,200,267,451) (1,538,493,622)
Gains/(losses) on disposals during the year 28,156,215 (20,625,763)
Cost of investments held at the end of the year 878,648,520 1,014,111,94 4
Fair value below cost (29,752,978) (9,380,027)
Fair value of investments held at the end of the year 848,895,542 1,004,731,917
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11 Trade and other receivables
30 June 2025
£
30 June 2024
£
Amounts receivable within one year
Investment income receivable 527, 230 725, 261
Fixed interest income receivable 2,344,089 2,782,183
Sales of investments awaiting settlement 12,523,865 1,961
Other receivables — 214
Prepayments 17,792 8,463
15,412,976 3,518,082
The Directors consider that the carrying amounts of trade and other receivables approximate to their fair value. All receivables are
short-term, with settlement due within a few days or months of the year end, and are held with reputable entities and government
institutions with no history of default. As a result, the Company’s exposure to default risk is negligible and no credit losses are expected.
12 Trade and other payables
30 June 2025
£
30 June 2024
£
Amounts falling due within one year
Share buybacks payable 639,639 2,703,693
Purchases of investments awaiting settlement 3,914,240 248,458
Management fees payable 725,478 759,478
Other payables 172,391 255,757
5,451,748 3,967, 386
The Directors consider that the carrying amounts of trade and other payables approximate to their fair value.
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13 Share capital
Authorised share capital
30 June 2025
£
30 June 2024
£
Unlimited unclassified shares of 0.01p each Unlimited Unlimited
75,000,000 C shares of 0.1p each 75,000 75,000
The Company’s share capital comprises 75,000,000 C shares of 0.1p each, and an unlimited number of unclassified shares of 0.01p each.
Number of shares Share capital
Issued share capital
Year ended
30 June 2025
Year ended
30 June 2024
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Redeemable participating preference shares of 0.01p each
Balance at the start of the year 357,937,76 4 3 83,517,764 723,100,329 791,710,799
Share buybacks during the year (55,760,000) (25,580,000) (153, 487, 283) (68,610,470)
Balance at the end of the year 302,177,764 357,937,764 569,613,046 723,100,329
Unclassified shares
Unclassified shares can be issued as nominal shares or redeemable participating preference shares. Nominal shares can only be issued
at par to the Administrator. The Administrator is obliged to subscribe for nominal shares for cash at par when redeemable participating
preference shares are redeemed to ensure that funds are available to redeem the nominal amount paid up on redeemable participating
preference shares. The holder or holders of nominal shares shall have the right to receive notice of and to attend general meetings of the
Company but shall not be entitled to vote thereat. Nominal shares shall carry no right to dividends. In a winding-up, holders of nominal
shares shall be entitled to be repaid an amount equal to their nominal value out of the assets of the Company. There were no nominal
shares in issue at 30 June 2025 or 30 June 2024.
The holders of fully paid redeemable participating preference shares are entitled to one vote at all meetings of the relevant class of
shareholders. Participating preference shares carry the right to receive dividends or other distributions declared by the Company. In a
winding-up, participating preference shareholders shall be entitled, firstly, to an amount equal to the nominal value of their shareholding,
and, secondly, to a proportionate share of the balance of assets remaining in the Company after settlement of amounts due to nominal
shareholders.
C shares
There were no C shares in issue at year end (30 June 2024: nil).
Block listing facility
As at 30 June 2025 and 30 June 2024, the Company had the ability to issue 9,341,551 redeemable participating preference shares under
a block listing facility.
During the year, no new redeemable participating preference shares were allotted or issued under the block listing facility (30 June 2024: nil
redeemable participating preference shares issued).
New redeemable participating preference shares rank pari passu with the existing shares in issue.
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Purchase of own shares by the Company
A special resolution was passed on 10 December 2024 which authorised the Company in accordance with The Companies (Guernsey) Law,
2008 to make purchases of its own shares as defined in that Ordinance of its participating shares of 0.01p each, provided that
a the maximum number of shares the Company can purchase is no more than 14.99% of the Company’s issued share capital
b the minimum price (exclusive of expenses) which may be paid for a share is 0.01p, being the nominal value per share
c the maximum price (exclusive of expenses) which may be paid for the share is an amount equal to the higher of (i) 105% of the average of
the middle market quotations for a share taken from the LSE Daily Official List for the five business days immediately preceding the day
on which the share is purchased and (ii) the price stipulated in Article 5(i) of the Buyback and Stabilisation Regulation (No 2237 of 2003)
d purchases may only be made pursuant to this authority if the shares are (at the date of the proposed purchase) trading on the LSE at a
discount to the lower of the undiluted or diluted NAV
e the authority conferred shall expire at the conclusion of the Annual General Meeting of the Company in 2025 or, if earlier, on the expiry
of 15 months from the passing of this resolution, unless such authority is renewed prior to such time and
f the Company may make a contract to purchase shares under the authority hereby conferred prior to the expiry of such authority which
will or may be executed wholly or partly after the expiration of such authority and may make an acquisition of shares pursuant to any
such contract.
Redeemable participating preference shares in issue
As at 30 June 2025, the Company had 383,517,764 (30 June 2024: 383,517,764) shares in issue, of which 81,340,000 (30 June 2024:
25,580,000) were held in treasury. During the year, the Company has bought back into treasury 55,760,000 redeemable participating
preference shares at an average price of £2.7499. Therefore, the total voting rights in the Company at 30 June 2025 were 302,177,764
(30 June 2024: 357,937,764). Subsequent to the year end, the Company has bought back a further 5,430,714 of its own shares at an average
purchase price of £2.8485.
14 NAV reconciliation
The Company announces its NAV, based on bid value, to the LSE after each weekly and month end valuation point. At the time of releasing
the year end NAV to the LSE, not all 30 June prices of the Company’s investments may be available. Adjustments are made to the NAV in
the Financial Statements once these prices become available. The following is a reconciliation of the NAV and NAV per share attributable
to redeemable participating preference shareholders as presented in these Financial Statements to the NAV and NAV per share reported
to the LSE.
30 June 2025 30 June 2024
NAV
£
NAV per share
£
NAV
£
NAV per share
£
NAV published on the LSE as at the year end 891,593,859 2.9506 1,019,427,621 2.8481
Adjustments to valuations (3,397, 85 4) (0.0113) 311, 200 0.0008
Net assets attributable to holders of redeemable participating preference shares 888,196,005 2.9393 1,019,738,821 2.8489
15 Contingent liabilities
There were no contingent liabilities as at 30 June 2025 (30 June 2024: £nil).
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16 Related party transactions
The Directors are responsible for the determination of the investment policy of the Company and have overall responsibility for the
Company’s activities, and are therefore regarded as related parties.
Investment Management Agreement
The Company is managed by Ruffer AIFM Ltd, a subsidiary of Ruffer LLP, a privately owned business registered in England and Wales
as a limited liability partnership. The Company and the Investment Manager have entered into an Investment Management Agreement
under which the Investment Manager has been given responsibility for the day-to-day discretionary management of the Company’s assets
(including uninvested cash) in accordance with the Company’s investment objective and policy, subject to the overall supervision of the
Directors and in accordance with the investment restrictions in the Investment Management Agreement and the Articles.
The market value of WS Ruffer Gold is deducted from the NAV of the Company before the calculation of management fees on a monthly basis,
as the Investment Manager separately earns a management fee from that entity. For additional information, refer to the Portfolio Statement
on pages 117 to 124. Management fees for the year and payable at the end of the year are disclosed in note 8.
Directors’ remuneration
Directors’ remuneration is set out in the Directors’ remuneration report on pages 72 and 73.
Shares held by related parties
As at 30 June 2025, Directors of the Company held the following numbers of shares beneficially.
Shares
30 June 2025
£
30 June 2024
£
Susie Farnon 21,700 16,200
Shelagh Mason 14,698 14,698
Nicholas Pink 70,769 63,206
Solomon Soquar 10,000 10,000
Colleen McHugh 16,000 7,000
Christopher Russell (retired 10 December 2024) — 125,000
133,167 236,104
As at 30 June 2025, Jasmine Yeo, investment manager of the fund manager, owned 15,000 (30 June 2024: 15,000) shares in the Company.
As at 30 June 2025, Jonathan Ruffer, chair of Ruffer LLP (the parent entity of the Company’s Investment Manager), owned 499,335
(30 June 2024: 499,335) shares in the Company.
As at 30 June 2025, Henry Maxey, chief investment officer of Ruffer LLP (the parent entity of the Company’s Investment Manager),
owned 3,850,000 (30 June 2024: 2,000,000) shares in the Company.
As at 30 June 2025, Ruffer LLP and other entities within the Ruffer Group held 7,798,036 (30 June 2024: 6,769,224) shares in the Company
on behalf of its discretionary clients.
Investments in related funds
As at 30 June 2025, the Company held investments in four (30 June 2024: four) related investment funds valued at £167,974,135
(30 June 2024: £189,046,709). Refer to the Portfolio Statement on pages 117 to 124 for details.
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17 Operating segment reporting
The Chief Operating Decision Maker, which is the Board, is of the opinion that the Company is a single operating segment. The financial
information used by the Chief Operating Decision Maker to manage the Company presents the business as a single segment.
Segment information is measured on the same basis as that used in the preparation of the Company’s Financial Statements.
The Company receives no revenues from external customers. The Company holds no non-current assets other than investments in any
geographical area other than Guernsey.
18 Financial instruments
In accordance with its investment objectives and policies, the Company holds financial instruments which at any one time may comprise
the following
– securities held in accordance with the investment objectives and policies
– cash and short-term receivables and payables arising directly from operations
– derivative transactions including investment in forward foreign currency contracts and
– borrowing up to a maximum of 30% of the NAV of the Company.
Terms, conditions and accounting policies
The financial instruments held by the Company comprise principally internationally listed or quoted equities or equity-related securities
(including convertibles), and/or bonds which are issued by corporate issuers, supra-nationals or government organisations.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the
basis on which income and expenses are recognised, in respect of its financial assets and liabilities are disclosed in note 2. The following
table analyses the carrying amounts of the financial assets and liabilities by category as defined in IFRS 9.
The following are the categories of financial instruments held by the Company at the reporting date.
Financial assets
30 June 2025
fair value
£
30 June 2024
fair value
£
Financial assets at fair value through profit or loss
Listed securities 791,006,623 945,861,804
UCITS funds 57,888,919 58,870,113
Derivative financial assets 3,879,825 36,246
Financial assets at amortised cost
Cash and cash equivalents 25,743,592 18,788,529
Trade and other receivables (excluding prepayments) 15,395,184 3,509,619
893,914,143 1,027,066,311
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Financial liabilities
30 June 2025
fair value
£
30 June 2024
fair value
£
Financial liabilities at fair value through profit or loss
Derivative financial liabilities 284,182 3,368,567
Financial liabilities at amortised cost
Trade and other payables 5,451,748 3,967, 386
5,735,930 7, 335,953
19 Financial risk management and associated risks
The Company is exposed to a variety of financial risks as a result of its activities. These risks include market risk (including price risk,
foreign currency risk and interest rate risk), credit risk and liquidity risk. These risks, which have applied throughout the year, and the
Investment Manager’s policies for managing them are summarised as follows:
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Company’s activities expose it primarily to the market risks of changes in market prices, interest rates and foreign currency
exchange rates.
Market price risk
Market price risk arises mainly from the uncertainty about future prices of the financial instruments held by the Company. It represents
the potential loss the Company may suffer through holding market positions in the face of price movements.
The Company’s investment portfolio is exposed to market price fluctuations which are monitored by the Investment Manager in pursuance
of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Placing
and Offer for Subscription document mitigates the risk of excessive exposure to any particular type of security or issuer.
Market price sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to equity, investment funds, commodities and bond price risks
at the reporting date. The 20% reasonably possible price movement for equity-related securities, investment funds and commodities
(30 June 2024: 20%) is based on the Investment Manager’s best estimates. The sensitivity rate for these investments of 20% is regarded
as reasonable, as in the Investment Manager’s view there continues to be potential for market volatility in the coming year.
A 20% (30 June 2024: 20%) increase in the market prices of equity- and commodity-related investments as at 30 June 2025 would have
increased the net assets attributable to holders of redeemable participating preference shares by £61,250,353 (30 June 2024: £69,604,484)
and a 20% change in the opposite direction would have decreased the net assets attributable to holders of redeemable participating
preference shares by an equal opposite amount.
This analysis does not allow for the impact of investments held within Ruffer Protection Strategies or Ruffer Illiquid Multi-Strategies Fund
2015, which may reduce the sensitivity to market prices. Please refer to the Derivatives section below.
A sensitivity analysis based on the interest rates of bond-related investments as at 30 June 2025 and 30 June 2024 has been considered
under Interest rate risk on pages 107 to 109.
Actual trading results may differ from the above sensitivity analysis and these differences could be material.
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Foreign currency risk
Foreign currency risk arises from fluctuations in the value of a foreign currency. It represents the potential loss the Company may suffer
through holding foreign currency assets in the face of foreign exchange movements.
As a portion of the Company’s investment portfolio is invested in securities denominated in currencies other than pound sterling
(the functional and presentation currency of the Company), the Statement of Financial Position may be significantly affected by movements
in the exchange rates of such currencies against pound sterling. The Investment Manager has the power to manage exposure to currency
movements by using options, warrants and/or forward foreign currency contracts and details of the holdings of such instruments at the date
of these Financial Statements are set out below and on the following page. In the event that the base currency weakens during the course
of the contract, the contract will expire at a loss that will be offset by a corresponding gain in the underlying assets. The opposite would be
true when the base currency strengthens during the course of the contract.
As at 30 June 2025, the Company had three (30 June 2024: four) open forward foreign currency contracts.
Forward foreign exchange contracts at 30 June 2025
Expiry date Underlying
Notional amounts of
contracts outstanding
Fair value
assets/(liabilities)
£
19 Sep 2025 Foreign currency (sale of USD) US$465,496,200 3,737, 393
19 Sep 2025 Foreign currency (sale of JPY) JPY2,329,500,000 142,432
19 Sep 2025 Foreign currency (sale of EUR) €52,719,900 (284,182)
3,595,643
Forward foreign exchange contracts at 30 June 2024
Expiry date Underlying
Notional amounts of
contracts outstanding
Fair value
assets/(liabilities)
£
20 Sep 2024 Foreign currency (sale of USD) US$561, 215,900 (3, 238,717)
20 Sep 2024 Foreign currency (sale of JPY) JPY10,377,000,000 36,246
20 Sep 2024 Foreign currency (sale of EUR) €8,015,000 (15,369)
20 Sep 2024 Foreign currency (sale of EUR) €26,509,800 (114,481)
(3,332,321)
The Company’s treatment of currency transactions other than in pound sterling is set out in note 2 to the Financial Statements under
Translation of foreign currency.
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As at 30 June 2025 and 30 June 2024, the Company held the following assets and liabilities in currencies other than the functional currency,
excluding the impact of forward foreign exchange contracts disclosed above.
30 June 2025
assets
£
30 June 2025
liabilities
£
30 June 2024
assets
£
30 June 2024
liabilities
£
Euro 57, 621, 251 164,325 33,585,617 77, 290
Canadian dollar 2,802,872 — 3,409,612 —
Hong Kong dollar 6,742,315 — — —
Yen 143,141,443 — 151,103,749 —
Swiss franc 5,490,905 196,703 3,849,993 —
US dollar 350,218,181 3,350,993 467,122,905 —
Total 566,016,967 3,712,021 659,071,876 77,920
Foreign currency sensitivity
The Company’s exposure and sensitivity to a change of 10% in foreign exchange rates is detailed by currency in the following table.
30 June 2025
net exposure
£
30 June 2025
effect on
net assets
£
30 June 2024
net exposure
£
30 June 2024
effect on
net assets
£
Euro 12,269,909 1,226,991 4,286,868 428,687
Canadian dollar 2,802,872 280,287 3,409,612 340,961
Hong Kong dollar 6,742,315 674,232 — —
Yen 131,123,446 13,112,345 99,455,813 9,945,581
Swiss franc 5,294,202 529,420 3,849,993 384,999
US dollar 4,305,942 430,594 26,768,796 2,676,880
Total 162,538,686 16,253,869 137,771,082 13,777,108
As at 30 June 2025, if the exchange rates of pound sterling against the above currencies had weakened by 10% (30 June 2024: 10%), with
all other variables held constant, net assets attributable to holders of redeemable participating preference shares would be £16,253,869
(30 June 2024: £13,777,108) higher, net of open forward foreign currency contracts and due mainly as a result of foreign currency gains on
translation of these financial assets and liabilities to pound sterling; and a 10% strengthening of pound sterling against the above currencies
would have resulted in an equal but opposite effect on the net assets attributable to holders of redeemable participating preference shares.
The sensitivity rate of 10% is regarded as reasonable as this approximates to the weighted average volatility over the last two years of the
principal foreign currencies to which the Company is exposed against pound sterling. Any changes in the foreign exchange rate will directly
affect the profit and loss, allocated to the capital column of the Statement of Comprehensive Income.
Actual trading results may differ from the above sensitivity analysis and these differences could be material.
As has been seen in previous years, currencies can fluctuate by more or less than this indicative amount. The Investment Manager
incorporates this variable into risk analysis when managing the investments.
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Interest rate risk
Interest rate risk represents the uncertainty of investment return due to changes in the market rates of interest.
The Company invests in fixed and floating rate securities. The income of the Company may be affected by changes to interest rates relevant
to particular securities or as a result of the Investment Manager being unable to secure similar returns on the expiry of contracts or sale
of securities. Interest receivable on bank deposits and floating rate securities or payable on bank overdraft positions will be affected by
fluctuations in interest rates (cash flow interest rate risk).
The Investment Manager actively manages the Company’s exposure to interest rate risk, paying heed to prevailing interest rates and
economic conditions, market expectations and their own opinions of likely movements in interest rates. Currently the vast majority of the
exposure of the Company to fixed interest securities is in the form of index-linked bonds. The value of these investments is determined by
current and expected inflation and interest rates.
The value of fixed interest securities will be affected by general changes in interest rates that will in turn result in increases or decreases
in the market value of those instruments. When interest rates decline, the value of the Company’s investments in fixed rate debt obligations
can be expected to rise, and when interest rates rise, the value of those investments may decline (fair value interest rate risk).
The investment portfolio details the security type, issuer, interest rate and maturity date of all of the Company’s fixed and floating rate
securities as at 30 June 2025.
The following tables summarise the Company’s exposure to interest rate risk. It includes the Company’s financial assets and liabilities at fair
values, categorised by underlying interest rate type.
As at 30 June 2025
Financial assets
Floating rate
£
Fixed rate
£
Non–interest
bearing
£
Total
£
Investments at fair value through profit or loss 232,749,246 199,809,316 416,336,980 848,895,542
Cash and cash equivalents 25,743,592 — — 25,743,592
Derivative financial assets — — 3,879,825 3,879,825
Trade and other receivables — — 15,395,184 15,395,184
258,492,838 199,809,316 435,611,989 893,914,143
Financial liabilities
Trade and other payables — — 5,451,748 5,451,748
Derivative financial liabilities — — 284,182 284,182
— — 5,735,930 5,735,930
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As at 30 June 2024
Financial assets
Floating rate
£
Fixed rate
£
Non–interest
bearing
£
Total
£
Investments at fair value through profit or loss 179,185,849 347, 347,051 478,199,017 1,004,731,917
Cash and cash equivalents 18,788,529 — — 18,788,529
Derivative financial assets — — 36,246 36,246
Trade and other receivables — — 3,509,619 3,368,619
197,974,378 347, 347,0 51 481,744,882 1,027,066,311
Financial liabilities
Trade and other payables — — 3,967, 386 3,967, 386
Derivative financial liabilities — — 3,368,567 3,368,567
— — 7, 335,953 7,335,953
The table below summarises weighted average effective (real) interest rates for fixed rate financial instruments.
30 June 2025
%
Weighted average
period for which
rate/yield is fixed
(years)
30 June 2024
%
Weighted average
period for which
rate/yield is fixed
(years)
UK government bonds 2.2238 29.07 0.5947 27.24
US government bonds 3.8961 1.21 1.9736 9.16
North American corporate bonds 12.0040 4.30 12.0032 4.30
Japanese government bonds 0.7551 4.14 0.1463 0.95
Interest rate sensitivity analysis
Key determinants of interest rates include economic growth prospects, inflation, governments’ fiscal positions and rates on nominal bonds of
similar maturities. This sensitivity analysis assumes a 200 basis point increase or decrease in interest rates (30 June 2024: 200 basis point
increase or decrease), with all other variables unchanged. This would be the equivalent of a 200 basis point increase or decrease in ‘real’
interest rates, and as such is likely to overstate the actual impact of such a move in nominal rates. The increased interest sensitivity rates in
the current year are regarded as reasonable due to the current high inflation environment.
Most of the Company’s fixed rate securities are conventional bonds, whose yields, and as a consequence their prices, are determined by
market perception as to the appropriate level of yields given the economic background.
This analysis does not allow for the impact of investments held within Ruffer Protection Strategies and the Ruffer Illiquid Multi Strategies
Fund, which may reduce the sensitivity to changes in interest rates. Please refer to the Derivatives section below.
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Fair value interest rate sensitivity
In respect of the Company’s holdings of fixed rate bonds, an increase/decrease of 100 basis points (30 June 2024: 200 basis points) in
interest rates as at the reporting date would have decreased by £17,677,237/increased by £25,768,689 the net assets attributable to holders
of redeemable participating preference shares (30 June 2024: decreased/increased by £63,897,360).
Cash flow interest rate sensitivity
In respect of the Company’s holdings of floating rate bonds and cash and cash equivalents, an increase/decrease of 100 basis points
(30 June 2024: 200 basis points) in interest rates as at the reporting date would have increased/decreased the net assets attributable to
holders of redeemable participating preference shares by £2,584,928 (30 June 2024: £3,959,488).
Credit risk
Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the
Company. Failure of any relevant counterparty to perform its obligations in respect of these items may lead to a financial loss.
The Company is exposed to credit risk in respect of cash and cash equivalents and trade and other receivables. The credit risk associated
with debtors is limited to the unrealised gains on open derivative contracts such as forward foreign currency contracts, as detailed above,
and trade and other receivables. It is the opinion of the Board of Directors that the carrying amounts of these financial assets represent the
maximum credit risk exposure as at the reporting date.
The Company will not invest in the securities of any company that is not quoted or does not have a listing on a market specified in the
Financial Services and Markets Act 2000 (Financial Promotions) Order 2001 except for investments in investment funds and such other
financial markets as may be specifically agreed from time to time between the Board and the Investment Manager.
All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default is considered minimal, as
delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have
been received by the broker. The trade will fail if either party fails to meet their obligation. All amounts outstanding at the year end on the
purchases of securities were settled within a few days of the year end, therefore there are no expected credit losses on these amounts.
The Company’s most recent prospectus, published on 15 December 2022, allows investment in a wide universe of equity-related securities
and bonds, including those in countries that may be classed as emerging or developing. In adhering to investment restrictions set out within
the document, the Company mitigates the risk of any significant concentration of credit risk.
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Credit risk analysis
The Company’s maximum credit exposure is limited to the carrying amount of financial assets recognised at the reporting date,
as summarised below.
Year ended
30 June 2025
£
Year ended
30 June 2024
£
Financial assets at fair value through profit or loss 848,895,542 1,004,731,917
Derivative assets at fair value through profit or loss 3,879,825 36,246
Cash and cash equivalents 25,743,592 18,788,529
Trade and other receivables 15,395,184 3,509,619
893,914,143 1,027,066,311
The Company is exposed to a potentially material credit risk in respect of cash and cash equivalents, which is mitigated by the use of
institutions with a high credit rating. As at 30 June 2025, almost 100% (30 June 2024: almost 100%) of cash is placed with Northern Trust
(Guernsey) Limited (NTGL), and the remainder with Royal Bank of Scotland International Limited (RBSI).
NTGL is a wholly owned subsidiary of The Northern Trust Corporation (TNTC). TNTC is publicly traded and a constituent of the S&P 500.
TNTC has a long-term credit rating of A+ (30 June 2024: AA-) from Standard & Poor’s and A2 (30 June 2024: A2) from Moody’s. RBSI has
a long-term credit rating of A (30 June 2024: A) from Standard & Poor’s and A2 (30 June 2024: A2) from Moody’s.
The Moody’s credit ratings of the issuers of bonds held by the Company as at 30 June 2025 and 30 June 2024 were as follows.
30 June
2025
30 June
2024
UK index-linked gilt 2.5% 17/07/2024 — Aa3
UK index-linked gilt 0.125% 22/03/2026 Aa3 —
UK gilt 4.125% 29/01/2027 Aa3 —
UK index-linked gilt 0.125% 10/08/2048 Aa3 —
UK index-linked gilt 0.125% 22/03/2051 Aa3 —
UK index-linked gilt 1.25% 22/11/2054 Aa3 —
UK index-linked gilt 0.375% 22/03/2062 Aa3 Aa3
UK index-linked gilt 0.125% 22/11/2065 Aa3 Aa3
UK index-linked gilt 0.125% 22/03/2068 Aa3 Aa3
UK index-linked gilt 0.125% 22/03/2073 Aa3 Aa3
US Treasury inflation indexed bond 1.125% 15/01/2033 — Aaa
US Treasury inflation indexed bond 1.375% 15/07/2033 — Aaa
US Treasury inflation indexed bond 1.75% 15/01/2034 — Aaa
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30 June
2025
30 June
2024
US Treasury floating rate bond 31/10/2024 — Aaa
US Treasury floating rate bond 31/01/2025 — Aaa
US Treasury floating rate bond 30/04/2025 — Aaa
US Treasury floating rate bond 31/07/2025 — Aaa
US Treasury floating rate bond 31/10/2025 — Aaa
US Treasury floating rate bond 31/01/2026 Aa1 —
US Treasury floating rate bond 30/04/2026 Aa1 —
US Treasury floating rate bond 31/07/2026 Aa1 —
US Treasury floating rate bond 31/10/2026 Aa1 —
US Treasury floating rate bond 31/01/2027 Aa1 —
US Treasury bond 4.125% 31/01/2027 Aa1 —
US Treasury inflation indexed bond 2.375% 15/02/2055 Aa1 —
Denarius Metals 12% 19/10/2028 — na
1
Denarius Metals 12% 19/10/2029 na
1
—
Japan 0.005% 01/01/2025 — A1
Japan 0.005% 01/05/2025 — A1
Japan 0.005% 01/06/2025 — A1
Japan 0.005% 01/08/2025 A1 A1
Japan 0.005% 01/09/2025 A1 A1
Japan 0.005% 01/12/2025 A1 —
Japan 0.2% 01/03/2026 A1 —
Japan 0.2% 01/04/2026 A1 —
Japan 0.3% 01/05/2026 A1 —
Japan 0.4% 01/06/2026 A1 —
Japan 0.4% 01/07/2026 A1 —
Japan 2.4% 20/03/2055 A1 —
1 No rating available
None of the Company’s financial assets are secured by collateral or other credit enhancements.
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Derivatives
The Company has gained exposure to derivative contracts (predominantly options and forward currency contracts) as a risk management
tool. The intention of using such derivative contracts has been primarily to minimise the exposure of the Company to the negative impact of
changes to foreign exchange rates, interest rates, market volatility and to protect the portfolio from a correlated fall in bonds and equities.
At the year end, all such instruments (except forward foreign exchange contracts) were held indirectly within the Ruffer Protection Strategies
International or Ruffer Illiquid Multi-Strategies Fund 2015 vehicles as detailed in the Portfolio Statement on page 124.
Fair value
Financial assets at fair value through profit or loss are carried at fair value. Other assets and liabilities are carried at cost, which approximates
fair value.
IFRS 13 requires the Company to classify a fair value hierarchy that reflects the significance of the inputs used in making the measurements.
IFRS 13 establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under IFRS 13 are as follows
Level 1: quoted prices, based on bid prices, (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (that is, as prices)
or indirectly (that is, derived from prices) and
Level 3: inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the
lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed
against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment
based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value
measurement in its entirety requires judgement, considering factors specific to the asset or liability.
The determination of what constitutes ‘observable’ requires significant judgement by the Company. The Company considers observable data
to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by
independent sources that are actively involved in the relevant market.
Assets classified in Level 1 consist of listed or quoted equities or equity-related securities, options and bonds which are issued by corporate
issuers, supra-nationals or government organisations.
Assets classified in Level 2 are principally investments in funds fair-valued using the official NAV of each fund as reported by each fund’s
independent administrator at the reporting date. Where these funds are invested in equity-type products, they are classified as equity in
the table above. Convertible bonds are measured using a jump-diffusion pricing model available through Bloomberg. Options and foreign
exchange forward contracts are fair valued using publicly available data. Foreign exchange forward contracts are shown as derivative
financial assets and liabilities in the above table.
Assets classified in Level 3 consist of investments for which no market exists for trading, for example investments in liquidating or illiquid
funds, and are reported using the latest available official NAV less dividends declared to date of each fund as reported by each fund’s
independent administrator at the last reporting date. Where a market exists for trading in illiquid funds, these are classified in Level 2.
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The following table presents the Company’s financial assets and liabilities at fair value through profit or loss by level within the valuation
hierarchy at 30 June 2025.
30 June 2025
Level 1
£
Level 2
£
Level 3
£
Total
£
Financial assets at fair value through profit or loss
Long-dated UK inflation-linked bonds 41,734,816 — — 41,734,816
Long-dated non-UK inflation-linked bonds 1,980,170 — — 1,980,170
Long-dated nominal bonds 15,298,039 — — 15,298,039
Short-dated UK inflation-linked bonds 8,085,182 — — 8,085,182
Short‑dated nominal bonds 364,323,933 — — 364,323,933
Credit and derivative strategies — 110,085,216 — 110,085,216
Gold and precious metals exposure 29,110,829 39,714,419 — 68,825,248
Commodity exposure 10,471,769 — — 10,471,769
Equities 208,780,247 19,310,922 — 228,091,169
Derivative financial assets — 3,879,825 — 3,879,825
Total assets 679,784,985 172,990,382 — 852,775,367
Financial liabilities at fair value through profit or loss
Derivative financial liabilities — 284,182 — 284,182
Total liabilities — 284,182 — 284,182
The following table presents the Company’s financial assets and liabilities at fair value through profit or loss by level within the valuation
hierarchy at 30 June 2024.
30 June 2024
Level 1
£
Level 2
£
Level 3
£
Total
£
Financial assets at fair value through profit or loss
Long-dated inflation-linked bonds 167,491,254 — — 167,491, 25 4
Short‑dated nominal bonds 357,740,165 — — 357,740,165
Credit and derivative strategies — 130,176,596 — 130,176,596
Gold and precious metals exposure 40,847,653 36,259,655 — 77,107, 30 8
Commodity exposure 25,039,480 — — 25,039,480
Equities 224,566,656 22,610,458 — 247,177,114
Derivative financial assets — 36,246 — 36,246
Total assets 815,685,208 189,082,955 — 1,004,768,163
Financial liabilities at fair value through profit or loss
Derivative financial liabilities — 3,368,567 — 3,368,567
Total liabilities — 3,368,567 — 3,368,567
The Company recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the transfer
has occurred. During the year, one investment with a value of £1,250,278 was transferred from Level 1 to Level 2 (30 June 2024: no transfers
between levels of the fair value hierarchy), as no market price was available for the investment at 30 June 2025.
There were no movements in Level 3 investments during the year.
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Overview
Liquidity risk
Liquidity risk is the risk that the Company will find it difficult or impossible to realise assets or otherwise raising funds to meet financial
commitments. The Company’s liquidity risk is managed by the Investment Manager who monitors the cash positions on a regular basis.
The Company’s overall liquidity risks are monitored on a regular basis by the Board of Directors and a formal report is made by the
Investment Manager to the Directors at each Board Meeting.
As at 30 June 2025 and 30 June 2024, the Company had no significant financial liabilities other than short-term payables arising directly
from investing activity and derivative financial liabilities used to minimise the Company’s foreign currency exposure.
20 Capital risk management
The fair value of the Company’s financial assets and liabilities approximate to their carrying amounts at the reporting date. For the purposes
of this disclosure, redeemable participating preference shares are considered to be capital.
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and be viable in
order to pursue its investment objectives. The Board regularly reviews the Company’s capital structure, including gearing levels. It also
decides the extent to which any return of capital or income may be made to shareholders by way of dividends or share repurchases. It is the
Board’s intention to increase the market capitalisation of the Company not only through capital gain on the portfolio but also through further
issuance of shares when demand permits, and the shares are trading at a sufficient premium to NAV per share.
To assist with the marketing of the Company’s shares, the Company intends to operate in such a manner that its shares are not categorised
as non-mainstream pooled investments. This requires the Company to act so that it would qualify as an investment trust if it were UK
tax-resident. Among other things, this requires the Company to pay dividends such that it retains no more than 15% of the income that it
receives or is deemed to receive on an annual basis.
The Company has the ability to borrow up to 30% of its NAV at any time for short-term or temporary purposes as is necessary for the
settlement of transactions, to facilitate redemption (where applicable) or to meet ongoing expenses. At the year end the Company had no
borrowings (30 June 2024: £nil). The Company does not have, nor does it intend to adopt, any structural gearing. The gearing ratio below is
calculated as total liabilities divided by total equity.
30 June 2025
£
30 June 2024
£
Total assets 893,931,935 1,027,074,774
Less: total liabilities (5,735,930) (7, 335,953)
Total equity 888,196,005 1,019,738,821
Gearing ratio 0.65% 0.72%
The Board considers this gearing ratio to be adequate since total liabilities, which relates only to trade and other payables and unrealised
losses on open forward foreign currency contracts, represents a very small proportion of the Company’s total assets.
The Company has no externally imposed capital requirements.
114
Ruffer Investment Company Limited
Annual Report 2025
Redemption facility
In addition to the Company having the authority to purchase shares when deemed appropriate by the Directors, the Company has
a Redemption Facility (which takes the form of a tender offer to all holders of redeemable participating preference shares). This facility
may operate annually, in November each year, at the discretion of the Directors. Redemptions on any Redemption Date may be restricted
to a maximum of 25% in aggregate of the shares then in issue, with any tender requests from shareholders in excess of this being scaled
back pro rata.
The facility is intended, together with share buybacks, to address any imbalance in the supply and demand for the shares and to assist in
maintaining a narrow discount to the NAV per share at which the shares may be trading.
A special resolution was passed on 30 November 2023 which authorised the Company to make purchases of its own shares. For details of the
terms and conditions related to such buybacks, please refer to note 13. During the year, the Company bought back into treasury 55,760,000
redeemable participating preference shares (30 June 2024: 25,580,000).
21 Subsequent events
These Financial Statements were approved for issuance by the Board on 30 September 2025. Subsequent events have been evaluated up until
this date.
Subsequent to the year end, the Company has purchased 5,430,714 of its own shares into treasury at an average price of £2.8485 per share.
A second interim dividend of 3.35p per share in respect of the year ended 30 June 2025 was declared on 1 October 2025. The dividend is
payable on 24 October 2025 to shareholders on record at 10 October 2025.
115
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Additional
information
What’s in this section?
Portfolio statement 117
General information 125
Management and administration 126
Appendix 127
116
Ruffer Investment Company Limited
Annual Report 2025
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Government bonds 48.57% (30 Jun 24: 51.50%)
Long-dated UK inflation-linked bonds
UK index-linked gilt 0.125% 10/08/2048 GBP 2,647,000 2,438,312 0.27
UK index-linked gilt 0.125% 22/03/2051 GBP 2,692,000 2,200,073 0.25
UK index-linked gilt 1.25% 22/11/2054 GBP 2,704,000 2,294,000 0.26
UK index-linked gilt 0.375% 22/03/2062 GBP 7,799,000 7, 58 0, 69 2 0.85
UK index-linked gilt 0.125% 22/11/2065 GBP 8,372,000 6 ,257,663 0.70
UK index-linked gilt 0.125% 22/03/2068 GBP 13,317,000 10,117,589 1.14
UK index-linked gilt 0.125% 22/03/2073 GBP 15,847,000 10,846,487 1.23
Total long-dated UK inflation-linked bonds 41,734,816 4.70
Long-dated nominal bonds
Japan 2.4% 20/03/2055 JPY 3,298,500,000 15,298,039 1.72
Total long-dated nominal bonds 15,298,039 1.72
Long-dated non-UK inflation-linked bonds
US Treasury inflation indexed bond 2.375% 15/02/2055 USD 2,760,600 1,980,170 0.22
Total long-dated non-UK inflation-linked bonds 1,980,170 0.22
Short-dated UK inflation-linked bonds
UK index-linked gilt 0.125% 22/03/2026 GBP 5,267,000 8,085,182 0.91
Total short-dated UK inflation-linked bonds 8,085,182 0.91
Short-dated nominal bonds
Japan 0.005% 01/08/2025 JPY 3,413,000,000 17,248,240 1.94
Japan 0.005% 01/09/2025 JPY 6,000,000,000 30,310,304 3.40
Japan 0.005% 01/12/2025 JPY 4,000,000,000 20,182,805 2.27
Japan 0.2% 01/03/2026 JPY 1,700,000,000 8,577,520 0.97
Japan 0.2% 01/04/2026 JPY 1,700,000,000 8,572,879 0.97
Japan 0.3% 01/05/2026 JPY 463,000,000 2,335,762 0.26
Japan 0.4% 01/06/2026 JPY 1,865,100,000 9,415,263 1.06
Japan 0.4% 01/07/2026 JPY 1,862,450,000 9,398,873 1.06
Portfolio statement (unaudited)
as at 30 June 2025
117
Strategic report Governance report Financial Statements Additional information
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Overview
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
UK gilt 4.125% 29/01/2027 GBP 7,942,000 7,977,104 0.90
US Treasury floating rate bond 31/10/2026 USD 63,691,000 46,428,291 5.23
US Treasury floating rate bond 31/01/2027 USD 64,681,800 47,067, 644 5.30
US Treasury floating rate bond 30/01/2026 USD 63,700,000 46,438,098 5.23
US Treasury floating rate bond 30/04/2026 USD 63,739,000 46,432,181 5.23
US Treasury floating rate bond 31/07/2026 USD 63,634,000 46,383,032 5.22
US Treasury bond 4.125% 31/01/2027 USD 24,000,000 17,555,937 1.98
Total short-dated nominal bonds 364,323,933 41.02
Total government bonds 431, 422,140 48.57
Equities 25.69% (30 Jun 2024: 24.24%)
Europe
Accor EUR 29,933 1,138,836 0.13
AIB EUR 415,498 2,487,852 0.28
Airbus EUR 10,393 1,581,299 0.18
Alcon CHF 14,162 912,151 0.10
ArcelorMittal EUR 302,048 6,964,554 0.79
Banco Santander EUR 246,711 1,488,017 0.17
Bayer EUR 87, 290 1,918,297 0.22
Canal+ GBP 406,049 924,980 0.10
Dassault Aviation EUR 5,709 1,470,255 0.17
Deutsche Post EUR 56,063 1,886,092 0.21
Groupe Danone EUR 18,510 1,102,115 0.12
Havas EUR 8 87,155 1,109,229 0.12
Heineken EUR 36,747 2,334,975 0.26
JDE Peet’s EUR 128,592 2,675,826 0.30
Koninklijke Philips EUR 83,760 1,467, 544 0.17
Louis Hachette EUR 225,155 335,829 0.04
Nestlé CHF 29,020 2,099,841 0.25
Orange EUR 131,280 1,455,474 0.16
Prosegur Cash EUR 859,857 602,321 0.07
Prosus EUR 67,020 2,731,084 0.31
Roche CHF 10,450 2,478,913 0.28
118
Ruffer Investment Company Limited
Annual Report 2025
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Ryanair ADR USD 41,177 1,729,002 0.19
Smurfit WestRock GBP 145,470 4,569,213 0.51
Syensqo EUR 19,576 1,100,383 0.12
TUI EUR 198,961 1,259,796 0.14
Vallourec EUR 55,575 748,776 0.08
Vivendi EUR 225,155 565,932 0.06
Total Europe equities 49,138,586 5.53
United Kingdom
Aberforth Smaller Companies GBP 270,000 4,147, 20 0 0.47
Admiral Group GBP 91,988 3,008,008 0.34
BAE Systems GBP 76,020 1,433,737 0.16
Barclays GBP 546,174 1,842,245 0.21
Barratt Redrow GBP 303,594 1,384,085 0.16
Beazley GBP 112,504 1,051,912 0.12
BP GBP 4,104,047 15,008,500 1.69
British American Tobacco GBP 77, 491 2,681,963 0.30
Castings GBP 126,450 347,738 0.04
Conduit GBP 228,920 859,595 0.10
Glencore GBP 764,240 2,167,385 0.24
Informa GBP 246,647 1,987,481 0.22
JD Sports Fashion GBP 1,209,602 1,072,917 0.12
Jet2 GBP 102,244 1,885,379 0.21
National Grid GBP 234,037 2,484,303 0.28
PRS REIT GBP 2,870,000 3,099,600 0.35
Prudential GBP 1,440,430 13,145,364 1.48
Reckitt Benckiser GBP 35,597 1,763,831 0.20
Rio Tinto GBP 49,570 2,104, 246 0.24
Rolls-Royce Holdings GBP 162,369 1,570,758 0.18
RS Group GBP 528,414 3,035,738 0.34
Ruffer SICAV UK Mid and Smaller Companies Fund
1
GBP 6,977, 245 19,310,922 2.17
Science Group GBP 355,800 1,832,370 0.21
1 Ruffer Protection Strategies International and Ruffer Illiquid Multi Strategies Fund 2015 Ltd are classed as related parties as they share the same Investment Manager
(Ruffer AIFM Limited) as the Company. WS Ruffer Gold Fund and Ruffer SICAV UK Mid and Smaller Companies Fund are also classed as related parties as their
investment manager (Ruffer LLP) is the parent of the Company’s Investment Manager
119
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Ruffer Investment Company Limited
Annual Report 2025
Overview
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Severn Trent GBP 52,689 1,439,990 0.16
Spectris GBP 32,406 1,243,094 0.14
Unilever GBP 57, 853 2,559,417 0.29
United Utilities GBP 102,114 1,165,121 0.13
Total UK equities 93,632,899 10.55
North America
ACM Research USD 11,051 208,112 0.02
Alphabet USD 19,566 2,510,438 0.28
Amazon USD 51,294 8,193,891 0.93
Arrow Electronic USD 3,995 370,844 0.04
Bank of America USD 113,745 3,915,472 0.44
Borgwarner USD 8,963 218,331 0.02
Boyd Gaming USD 4,240 241,549 0.03
ChampionX USD 14,998 271,192 0.03
Cheesecake Factory USD 16,338 745,513 0.08
Citigroup USD 77,763 4,818,565 0.55
Cooper USD 14,305 741,293 0.08
Copa Holdings USD 2,409 192,762 0.02
Dorman Products USD 2,331 208,147 0.03
Enersys USD 2,786 174,013 0.02
Exelixis USD 3,189 102,344 0.01
Exxon Mobil USD 20,033 1,572,062 0.18
Fox USD 9,549 389,484 0.04
General Digital USD 15,012 321,186 0.04
General Electric USD 6,960 1,303,707 0.15
Genpact USD 6,122 196,161 0.02
Gilead Sciences USD 1,889 152,419 0.02
Griffon USD 1,676 88,279 0.01
Halozyme Therapeutic USD 1,720 65,145 0.01
H&R Block USD 5,287 211,257 0.02
Harmony Bioscience USD 3,670 84,400 0.01
120
Ruffer Investment Company Limited
Annual Report 2025
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Hewlett Packard USD 23,737 353,324 0.04
Incyte USD 2,845 141,090 0.02
Interpublic Group USD 20,643 368,002 0.04
Iqvia Holdings USD 12,447 1,427, 616 0.16
KB Home USD 4,539 175,088 0.02
Match Group USD 11,980 269,402 0.03
Matson USD 1,191 96,550 0.01
Maximus USD 4,303 220,132 0.02
Merck USD 3,891 224,132 0.03
Molson Coors USD 9,416 329,752 0.04
Mueller Industries USD 2,969 171,801 0.02
Noble USD 17,150 331,585 0.04
Oshkosh USD 1,788 147,720 0.02
Ovintiv USD 11,049 306,237 0.03
Owens Corning USD 1,214 121,577 0.01
Pfizer USD 69,850 1,232,497 0.14
Philip Morris USD 6,614 876,890 0.10
Pilgrim’s Pride USD 9,501 311,211 0.04
PNC Financial USD 5,490 745,180 0.08
Powell Industries USD 718 109,802 0.01
Pulte Homes USD 2,641 202,806 0.02
Rev Group USD 4,345 150,550 0.02
Royalty Pharma USD 7,425 194,709 0.02
Smurfit WestRock USD 29,643 931,039 0.10
Suncorp CAD 60,761 1,658,685 0.19
Taylor Morrison USD 4,274 191,197 0.02
TD Synnex USD 3,565 352,061 0.04
Toll Brothers USD 2,480 206,227 0.02
United Therapeutic USD 452 94,584 0.01
Total North America equities 39,238,012 4.42
121
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Ruffer Investment Company Limited
Annual Report 2025
Overview
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Japan
Advantest JPY 6,305 339,465 0.04
Asics JPY 19,296 357, 326 0.04
Astellas Pharma JPY 83,736 599,427 0.07
Baycurrent JPY 8,106 304,068 0.03
Chugai Pharmaceutical JPY 9,640 366,582 0.04
Daito Trust JPY 9,439 747,510 0.09
Dena JPY 25,754 347, 239 0.04
Denso JPY 54,535 537, 615 0.06
Fast Retailing JPY 2,293 573,812 0.06
Fuji Electric JPY 14,201 477, 349 0.05
Hoya JPY 4,059 351,509 0.04
Inpex JPY 51,345 525,245 0.06
Isetan Mitsukoshi JPY 27,935 310,340 0.03
Japan Airlines JPY 56,477 838,564 0.09
Japan Exchange JPY 82,442 608,502 0.07
Komatsu JPY 24,725 591,232 0.07
Kubota JPY 74,320 609,233 0.07
Ly JPY 173,908 466,14 4 0.05
Micronics Japan JPY 10,880 297, 568 0.03
Namura Shipbuilding JPY 19,045 302,323 0.03
Nippon Paint JPY 84,586 494,116 0.06
Note JPY 21,959 166,963 0.02
Olympus JPY 38,983 337,002 0.04
Otsuka Holdings JPY 11, 578 417,392 0.05
Recruit Holdings JPY 10,532 452,575 0.05
Sanrio JPY 9,527 335,554 0.04
Screen Holdings JPY 5,293 314,145 0.04
Shibaura Mechatronics JPY 6,402 352,455 0.04
Shift JPY 30,003 264,983 0.03
Shin‑Etsu Chemical JPY 19,707 474,229 0.05
Socionext JPY 19,769 277, 387 0.03
122
Ruffer Investment Company Limited
Annual Report 2025
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Suzuki Motor JPY 66,703 586,584 0.07
Taisei JPY 13,935 591,621 0.07
Takeda Pharmaceutical JPY 42,370 946,120 0.11
Tokyo Gas JPY 26,098 630,001 0.07
Tomy JPY 30,495 501,657 0.06
Toyo Suisan Kaisha JPY 9,583 464,262 0.05
Trend Micro JPY 7,169 360,106 0.04
Yakult Honsha JPY 47,572 651,750 0.07
Yokogawa Electric JPY 27, 359 530,013 0.06
Total Japan equities 18,699,968 2.11
Asia (ex-Japan)
Alibaba Group HKD 650,376 6,623,932 0.75
Alibaba Group ADR USD 20,473 1,690,528 0.18
iShares MSCI China EUR 3,671,655 13,821,107 1.56
Total Asia (ex-Japan) equities 22,135, 567 2.49
Other equities
Taylor Maritime Investments GBP 5,000,000 3,250,000 0.37
Tufton Oceanic Assets USD 2,383,561 1,996,137 0.22
Total other equities 5,246,137 0.59
Total equities 228,091,169 25.69
123
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Ruffer Investment Company Limited
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Overview
Currency
Holding at
30 Jun 2025
Fair value
£
% of total
net assets
Commodity exposure 1.18% (30 June 2024: 2.46%)
WisdomTree Copper USD 197, 428 6,445,308 0.73
Yellow Cake GBP 764,760 4,026,461 0.45
Total commodity exposure 10,471,769 1.18
Gold exposure and gold equities 7.75% (30 June 2024: 7.56%)
Barrick Mining USD 357, 497 5,417,647 0.61
Denarius Metals CAD 30,840 7,757 0.00
Denarius Metals 12% 19/10/2029 CAD 1,872,720 1,136,422 0.13
Newmont USD 177,154 7,514,725 0.85
WisdomTree Platinum USD 82,200 7, 28 3,188 0.82
WisdomTree Silver USD 340,143 8 ,887, 512 1.00
WS Ruffer Gold Fund
1
GBP 8,190,635 38,577,997 4.34
Total gold exposure and gold equities 68,825,248 7.75
Credit and derivative strategies 12.39% (30 June 2024: 12.77%)
Ruffer Illiquid Multi Strategies Fund 2015
1
GBP 126,581,748 62,776,193 7.06
Ruffer Protection Strategies
1
GBP 7,898,000 47,309,023 5.33
Total credit and derivative strategies 110,085,216 12.39
Total investments 848,895,542 95.58
Cash and other net current assets 39,300,463 4.42
888,196,005 100.00
1 Ruffer Protection Strategies International and Ruffer Illiquid Multi Strategies Fund 2015 Ltd are classed as related parties as they share the same Investment Manager
(Ruffer AIFM Limited) as the Company. WS Ruffer Gold Fund and Ruffer SICAV UK Mid and Smaller Companies Fund are also classed as related parties as their
investment manager (Ruffer LLP) is the parent of the Company’s Investment Manager
124
Ruffer Investment Company Limited
Annual Report 2025
Ruffer Investment Company Limited was incorporated in Guernsey
as a company limited by shares and as an authorised closed-ended
investment company on 1 June 2004. The Company launched on
the London Stock Exchange on 8 July 2004, with a launch price
of 100p per share and an initial net asset value of 98p per share.
The principal objective of the Company is to achieve a positive
total annual return, after all expenses, of at least twice the Bank
of England base rate. The Company invests predominantly in
internationally listed or quoted equities or equity-related securities
(including convertibles) and/or bonds which are issued by
corporate issuers, supra-nationals or government organisations.
The Company’s redeemable participating preference shares are
listed on the London Stock Exchange.
The Company reports its audited annual results each year for the
year ended 30 June, and its unaudited interim results for the six
months ended 31 December. These Financial Statements were
authorised for issue on 30 September 2025 by the Directors.
The Investment Manager is authorised and regulated by the United
Kingdom Financial Conduct Authority as a full-scope Alternative
Investment Fund Manager (AIFM). The Investment Manager is
entitled to an investment management fee payable to the AIFM
monthly in arrears at a rate of 1% of the net asset value per annum.
The Investment Manager and the Board intend to conduct the
affairs of the Company so as to ensure that it will not become tax
resident in the United Kingdom. Accordingly, and provided that the
Company does not carry on a trade in the United Kingdom through
a branch or agency situated therein, the Company will not be
subject to United Kingdom Corporation Tax or Income Tax.
The Company intends to be operated in such a manner that its
shares are not categorised as non-mainstream pooled investments.
Among other things, this requires the Company to pay dividends
such that it retains no more than 15% of the income that it receives
or is deemed to receive for UK tax purposes on an annual basis.
Apex Fund and Corporate Services (Guernsey) Limited (formerly
Sanne Fund Services (Guernsey) Limited) (the ‘Administrator’)
is entitled to receive an annual fee equal to 0.08% per annum on
the first £100 million; 0.04% per annum between £100 million
and £200 million; 0.02% per annum between £200 million and
£300 million; and 0.015% per annum thereafter; based on the
NAV of the Company on a mid-market basis, subject to a minimum
fee of £100,000 per annum.
Northern Trust (Guernsey) Limited (the ‘Custodian’) is entitled
to receive from the Company a fee of £2,000 per annum.
The Custodian is also entitled to charge for certain expenses
incurred by it in connection with its duties.
Northern Trust (Guernsey) Limited (the ‘Depositary’) is entitled
to an annual Depositary fee payable monthly in arrears at a rate
of 0.01% of the net asset value of the Company up to £100 million,
0.008% on the next £100 million and 0.006% thereafter as at
the last business day of the month subject to a minimum fee of
£20,000 per annum.
General information (unaudited)
125
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
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Overview
Directors
Susie Farnon
Shelagh Mason
Colleen McHugh
Nicholas Pink
Solomon Soquar
Registered office
1 Royal Plaza
Royal Avenue
St Peter Port
Guernsey GY1 2HL
Independent Auditor
Deloitte LLP
Regency Court
Glategny Esplanade
St Peter Port
Guernsey GY1 3HW
Investment Manager and Alternative
InvestmentFundManager
Ruffer AIFM Limited
80 Victoria Street
London SW1E 5JL
Solicitors to the Company as to UK law
Gowling WLG
4 More London Riverside
London SE1 2AU
Company Secretary and Administrator
Apex Fund and Corporate Services (Guernsey) Limited
(formerly Sanne Fund Services (Guernsey) Limited)
1 Royal Plaza
Royal Avenue
St Peter Port
Guernsey GY1 2HL
CREST agent
Computershare Investor Services (Jersey) Limited
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES
Sponsor and Broker
Investec Bank plc
30 Gresham Street
London EC2V 7QP
Custodian
Northern Trust (Guernsey) Limited
Trafalgar Court, Les Banques
St Peter Port
Guernsey GY1 3DA
Depositary
Northern Trust (Guernsey) Limited
Trafalgar Court, Les Banques
St Peter Port
Guernsey GY1 3DA
Advocates to the Company as to Guernsey law
Mourant Ozannes (Guernsey) LLP
Royal Chambers
St Julian’s Avenue
St Peter Port
Guernsey GY1 4HP
Management and administration (unaudited)
126
Ruffer Investment Company Limited
Annual Report 2025
Regulatory performance data
To 30 Jun % 1996 1997 1998 1999 2000 2001 2002 2003
Ruffer 14.6 15.5 26.1 6.3 6.1 16.4 5.0 5.0
RIC NAV
2
— — — — — — — —
FTSE All‑Share TR 19.6 22.6 28.7 10.1 5.1 -7.8 -14.8 -9.7
Twice UK Bank Rate 13.2 12.2 14.6 13.3 11.3 12.0 9.0 8.0
2004 2005 2006 2007 2008 2009 2010 2011
Ruffer 8.9 15.4 15.3 2.4 5.3 15.0 16.0 11.1
RIC NAV
2
— 14.1
1
8.2 -0.8 14.8 18.6 21.8 8.8
FTSE All‑Share TR 16.9 18.7 19.7 18.4 -13.0 -20.5 21.1 25.6
Twice UK Bank Rate 7.7 9.6 9.3 10.2 11.3 5.6 1.0 1.0
2012 2013 2014 2015 2016 2017 2018 2019
Ruffer 2.5 12.6 0.7 10.3 -1.9 6.5 0.4 -2.0
RIC NAV
2
-0.3 13.8 -2.6 7.9 -1.0 8.8 0.8 -0.9
FTSE All‑Share TR -3.1 17.9 13.1 2.6 2.2 18.1 9.0 0.6
Twice UK Bank Rate 1.0 1.0 1.0 1.0 1.0 0.6 0.8 1.4
2020 2021 2022 2023 2024 2025 Annualised
Ruffer 12.9 15.2 2.1 -3.8 0.1 4.9 7.9
RIC NAV
2
10.1 15.3 6.0 -1.7 1.0 5.7 6.8
FTSE All‑Share TR -13.0 21.5 1.6 7.9 13.0 11.2 7.3
Twice UK Bank Rate 1.2 0.2 0.7 6.0 10.7 9.8 3.9
1 From 7 July 2004
2 Using NAVs published on the LSE
Appendix (unaudited)
127
Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
Source: Ruffer, FTSE International, Bloomberg, WM. Cumulative
performance 30 June 1995 to 30 June 2025, in pounds sterling.
Past performance is not a reliable indicator of future performance.
The value of the shares and the income from them can go down
as well as up and you may not get back the full amount originally
invested. The value of overseas investments will be influenced by
the rate of exchange. All figures include reinvested income. All
mentions of Ruffer performance refer to Ruffer’s representative
portfolio, which is an unconstrained segregated portfolio following
Ruffer’s investment approach. Ruffer performance is shown after
deduction of all fees and management charges. Calendar quarter
data has been used up to the latest quarter end and monthly data
thereafter. FTSE/MSCI Balanced data prior to 28 February 2017
refers to the FTSE WMA Balanced Index and after 1 March 2017
refers to the MSCI PIMFA Balanced index. Performance prior
to 1 July 2022 has been calculated using monthly data points,
and thereafter using daily data points. More information: ruffer.
co.uk/methodology. This document is issued by Ruffer AIFM
Limited (RAIFM), 80 Victoria Street, London SW1E 5JL. Ruffer
LLP and Ruffer AIFM Limited are authorised and regulated by
the Financial Conduct Authority. Ruffer AIFM is a wholly owned
subsidiary of Ruffer LLP. © RAIFM 2025 © Ruffer LLP 2025.
This document, and any statements accompanying it, are for
information only and are not intended to be legally binding.
Unless otherwise agreed in writing, our investment management
agreement, in the form entered into, constitutes the entire
agreement between Ruffer and its clients, and supersedes all
previous assurances, warranties and representations, whether
written or oral, relating to the services which Ruffer provides.
The views expressed in this report are not intended as an offer or
solicitation for the purchase or sale of any investment or financial
instrument. The views reflect the views of RAIFM at the date of
this document and, whilst the opinions stated are honestly held,
they are not guarantees and should not be relied upon and may be
subject to change without notice.
The information contained in this document does not constitute
investment advice and should not be used as the basis of any
investment decision. References to specific securities are included
for the purposes of illustration only and should not be construed as
a recommendation to buy or sell these securities. RAIFM has not
considered the suitability of this investment against any specific
investor’s needs and/or risk tolerance. If you are in any doubt,
please speak to your financial adviser.
The portfolio data displayed is designed only to provide summary
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Ruffer Investment Company Limited
Annual Report 2025
Alternative performance measures used in the Annual Report
Total NAV/share price return
Total NAV return and total share price return are calculations showing how the NAV/share price per share has performed over a period of
time, taking into account dividends paid to shareholders. It is calculated on the assumption that dividends are reinvested at the prevailing
NAV/share price on the last day of the month that the shares first trade ex-dividend. This provides a useful measure to allow shareholders to
compare performances between investment funds where the dividend paid may differ.
Year ended 30 June 2025
Total NAV
return
Total share
price return
Opening IFRS NAV/share price per share 284.89p 270.50p
Closing IFRS NAV/share price per share (a) 293.93p 284.00p
Dividends paid (b) 5.95p 5.95p
Weighted average LSE NAV/share price per share on ex-dividend date (c) 285.55p 272.44p
Dividend adjustment factor (d = b/c + 1) (d) 1.0208 1.0218
Adjusted closing NAV/share price per share (e = a x d) (e) 300.05p 290.20p
Total NAV/share price return 5.3% 7.3%
Year ended 30 June 2024
Total NAV
return
Total share
price return
Opening IFRS NAV/share price per share 284.74p 276.00p
Closing IFRS NAV/share price per share (a) 284.89p 270.50p
Dividends paid (b) 3.65p 3.65p
Weighted average LSE NAV/share price per share on ex-dividend date (c) 277.69p 263.25p
Dividend adjustment factor (d = b/c + 1) (d) 1.0131 1.0139
Adjusted closing NAV/share price per share (e = a x d) (e) 288.63p 274.25p
Total NAV/share price return 1.4% -0.6%
Share premium/(discount) to NAV
Share premium or (discount) to NAV is the amount by which the share price is higher/lower than the NAV per share, expressed as a
percentage of the NAV per share, and provides a measure of the Company’s share price relative to the NAV.
NAV per share
NAV per share is a calculation of the Company’s NAV divided by the number of shares in issue at the NAV date and provides a measure of
the value of each share in issue.
Market capitalisation
Market capitalisation is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by
the share price on the reference date.
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Strategic report Governance report Financial Statements Additional information
Ruffer Investment Company Limited
Annual Report 2025
Overview
130
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