Ruffer Investment Co Ltd on Monday said its net asset value per share increased in November, although it underperformed against its benchmark.

London-based Ruffer Investment is an investor aiming for positive total annual return of at least twice the Bank of England base rate, which currently stands at 3.00%.

Ruffer Investment’s NAV per share was 306.99 pence at November 30, up 1.8% during the month from 301.53p at October 31, following ‘strong’ gains in both equities and bonds. By comparison, the FTSE All-Share Total Return benchmark increased by 7.1%.

From a year ago, Ruffer Investment’s NAV was up 7.9%.

Ruffer Investment said its portfolios were negatively correlated to both equities and bonds, as they fell sharply earlier in the year. As markets ‘staged a recovery’ in November, adjustments to the portfolio meant it was positively correlated to equities in November, it said.

The investment firm added that this late burst of optimism comes amid hope that inflation is finally peaking.

‘Evidence supporting the long-awaited peak in inflation arrived mid-month with US CPI below expectations and crucially lower than previous year-on-year readings. This sparked a sharp rally in both equities and bonds,’ Ruffer Investment said.

Following three consecutive negative quarters across asset classes, Ruffer Investment said the final quarter of 2022 is delivering some ‘seasonal cheer’ for investors.

Shares in Ruffer Investment were trading flat at 311.50p on Monday morning in London.

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