Sparks

Ruffer Investment Company delivered its strongest performance in three years, with share price total return of 7.3% for the year to 30 June 2025, though net asset value (NAV) returns of 5.3% fell short of its twice Bank Rate objective. The investment trust increased dividends 63% to 5.95p while pursuing aggressive share buybacks.

What’s going on here?

The company repurchased 15.6% of shares outstanding for £153.5m during the year, bringing total buybacks to nearly 23% since August 2023, according to the annual report. The buyback programme helped narrow the discount to NAV from 5.0% to 3.4%, enhancing shareholder returns. A second interim dividend of 3.35p was declared, up from 3.10p previously.

What does this mean?

While missing its formal objective, Ruffer delivered its best returns in three years during volatile markets. The board’s confidence shows through the substantial dividend increase and continued buybacks. Management’s defensive ‘all-weather’ approach provided positive returns when many defensive strategies struggled.

Why should I care?

The aggressive buyback programme signals management’s commitment to addressing the persistent discount, while the 2.1% dividend yield provides income. However, investors should note the fund failed to meet its stated objective of doubling Bank Rate returns, raising questions about performance in rising rate environments.