LF Ruffer Gold Fund C Accumulation

Specialist

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
Name
LF Ruffer Gold Fund C Accumulation
Manager
Ruffer LLP (Link)
Type
Open Ended Investment Company
ISIN
GB00B8510Q93
Sector
Specialist
Launched
19/09/2012
OCF
1.24 %
Risk Rating
2
3 Year Sharpe
0.28
3 Year Alpha
3.64
Yield
0 %
Benchmark
FTSE Gold Mines TR USD
The investment objective of CF Ruffer Gold Fund is to achieve capital growth over the long term by investing principally in gold and precious metal related companies within the mining industry. The Sub-fund may also invest in collective investment schemes, cash, money market instruments, other transferable securities and derivatives and forward transactions and other investments to the extent that each is permitted by the Regulations.
Holding %
Newmont Goldcorp Corp 7.02 %
Kinross Gold Corp 6.51 %
Centerra Gold Inc 5.81 %
Semafo Inc 5.67 %
Anglogold Ashanti Ltd ADR 4.97 %
Iamgold Corp 4.01 %
Gold Fields Ltd 3.80 %
Silver Lake Resources Ltd 3.77 %
Westgold Resources Ltd 3.76 %
Gold Fields Ltd ADR 3.55 %
Region %
Canada 46.33 %
Africa 22.92 %
Australasia 17.47 %
United States 9.80 %
Sector %
Basic materials 98.93 %
Name
Ruffer LLP (Link)
Address
EC3N 1DX, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Paul Kennedy
Joined 01/31/2014

Data provided by Morningstar.

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