YOUR PORTFOLIO Defensive trusts
Hamish Baillie & Duncan MacInnes
Managers , Ruffer Investment Company
The
Ruffer Investment Company aims to deliver a positive annual return of at least twice the Bank of England base rate . Like Spiller , managers Hamish Baillie and Duncan MacInnes are worried about inflation and have a significant exposure to index-linked bonds in their trust . Yet while they are sceptical of central banks ’ ability to bring inflation under control , they still expect interest rates to rise further .
Hamish Baillie
Duncan MacInnes
Where the Ruffer Investment Company differs from Capital Gearing is in its ability to hold alternative assets such as derivatives and cryptocurrency – the managers made significant gains from a position in Bitcoin they sold in 2021 . Their cautious outlook today means they have just 36 % of their portfolio in equities , with about half of that in more defensive stocks . Positions in credit protection should benefit the portfolio if there is a recession and corporate defaults rise . Ruffer Investment Company has made 303 % since launch in July 2004 , compared with 262.1 % from the FTSE All Share , although again it has lagged the index over 10 years .
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