The vehicle is far and away the best performer in its IMA Cautious Managed sector over five- and 10-year periods. During these timeframes the fund has returned more than double its benchmark, with significantly less volatility.
Performance of fund vs sector and benchmark over 10-yrs
| Name | 1-yr returns (%) | 3-yr returns (%) |
5-yr returns (%) |
10-yr returns (%) |
| CF Ruffer | 3.12 | 46.1 | 58.93 | 151.43 |
| Benchmark | 5.24 | 35.86 | 23.86 | 70.79 |
| IMA Cautious Managed | -0.81 | 26.46 | 6.53 | 41.97 |
Source: FE Analytics
CF Ruffer Total Return’s benchmark is a composite index, with an equal 50 per cent weighting to the FTSE All Share and FTSE British Government All Stocks.
According to FE Analytics data, the fund has returned 151.43 per cent in the last decade, outperforming its sector average and benchmark by 109.46 and 80.64 per cent respectively. The Jupiter Merlin Income Portfolio, which is the second-best performer in the sector over 10 years, has returned 96.8 per cent.
Managers David Ballance and Steve Russell have also added more value – or Alpha – to their benchmark than any of their competitors during this time.
Over five years, CF Ruffer Total Return has returned 58.93 per cent – nearly 10 times as much as its sector average and more than twice as much as the second-best performing Cautious Managed fund; in this case, AXA Global Distribution.
Performance of fund vs sector and benchmark over 10 years
Source: FE Analytics
Only the Henderson Managed Distribution and Investec Cautious Managed funds have beaten the £2.2bn vehicle over three years.
It has also managed to achieve these high returns with a below-average volatility, and, with an FE Risk Score of 33, it is deemed slightly less risky than the average Cautious Managed fund.
These impressive returns have inevitably translated into significant investment inflows. According to FE Analytics data, the fund’s assets under management (AUM) have grown by nearly 10 times since November 2008, when it was just £287m in size. Only the Jupiter Merlin Income Portfolio and Halifax Cautious Managed fund are larger at present.
IMA Cautious Managed was the best-selling sector in the fourth quarter of 2010, as well as the first and third quarters of 2011. Inflows into CF Ruffer Total Return had a big part to play in this result.
CF Ruffer Total Return is one of the very few funds that is headed up by two FE Alpha Managers. Ballance and Russell also manage the £1.7bn CF Ruffer Absolute Return fund, which is a sector-leader in its own right.
The managers are relatively defensive at present, with 34 per cent of the portfolio in government bonds and a further 8 per cent in cash. A big portion of the portfolio’s equity exposure is in defensive sectors such as Telecoms and Utilities. Both Vodafone and Nippon Tel & Tel appear in the fund’s top-10 holdings.
The fund has a total expense ratio (TER) of 1.54 per cent and a minimum investment of £1,000. It is currently yielding 2.15 per cent.