LF Ruffer Gold Fund C Accumulation
Rated Fund 2018-19. Seeks value amid gold and precious metal miners
LF Ruffer Gold, our pick for those who like the idea of gold as a safe haven or insurance policy but who do not want to hold physical gold, has been buffeted around by concerns over rising rates in the US and the implications of the US/China trade war since its introduction to our Rated Funds in 2018.
It principally invests in gold and precious metal-related companies in the mining industry and has produced decent long-term returns and reasonable capital protection in periods of stockmarket weakness.
Paul Kennedy, research director at Ruffer, has run the fund since 2015. He points to signs of investors beginning to return to gold as the volatility in the broader stock market stimulates renewed interest in holding a risk diversifier.
He also notes wide divergences in the performance of different gold mining stocks without any discernible drivers. Shares in larger gold mining companies have performed relatively well, while their mid and small-sized counterparts have performed poorly and remain under pressure. These, he say, represent a long-term opportunity for a reasonably patient investor.
Kennedy is a value investor, fishing in unloved parts of the market trading on cheaper valuations, and has been increasing exposure to small and medium-sized miners. At the end of 2018, more than 80% of the fund was invested in these shares, predominantly listed in the US, South Africa and Australia.
The fund has an initial charge of 1%, as well as ongoing charges of 1.28%, but we deem these to be acceptable for a specialist fund.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Kinross Gold Corp||6.60 %|
|Anglogold Ashanti Ltd ADR||5.55 %|
|Gold Fields Ltd ADR||4.35 %|
|Newmont Mining Corp||4.22 %|
|Centerra Gold Inc||3.68 %|
|Goldcorp Inc||3.43 %|
|Iamgold Corp||3.40 %|
|OceanaGold Corp||3.29 %|
|Westgold Resources Ltd||2.93 %|
|Gold Fields Ltd||2.74 %|
|United States||7.04 %|
|Basic materials||98.59 %|
Data provided by Morningstar.
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