Ruffer duo reveal 'crown jewel' of portfolio as pound weakness persists

Helped by fall in sterling and dovish Fed

Ruffer managers Steve Russell and Hamish Baillie have described index-linked bonds as the 'crown jewels' of their portfolio, supported by recent sterling weakness.

Writing in an investor update for September, the managers said they hold 21% in non-UK index-linked bonds, 12% in long dated index-linked bonds and 11% in index-linked gilts in their £355m Ruffer Investment Company trust. The pair said the asset category has been supported by the lack of activity from the Federal Reserve to raise interest rates and the recent fall in sterling as a result of political uncertainty caused by the Brexit vote. Russell and Baillie (both pictured) said: "The surprisingly dovish Fed, the relentless crushing of bond yields, weaker sterling and an increasing cl...