NAV Update & Manager Comment

RUFFER INVESTMENT COMPANY LIMITED

(a closed-ended investment company incorporated in Guernsey with registration number 41996)

LEI 21380068AHZKY7MKNO47

Given recent market volatility we would like to highlight that when calculating NAV our administrators use the latest available prices. For the option exposure and credit protection there will be a lag in the prices being updated. The NAV of 10 March 2020 of 228.25p includes option values and valuations of the credit protections from 9 March. These investments have contributed positively through the recent market turmoil and updated prices will be included at the next NAV point.

Within the portfolio, the equity investments are suffering, but that is balanced by the protective assets, which are working broadly as expected. The unconventional protective assets are benefiting from increased volatility, fears in the credit markets, and movements in currencies. Volatility options have contributed significantly in the last few weeks and the credit protections are coming to life.

Gold equities have significantly underperformed gold year to date - contributing negatively to performance. Index-linked bonds are up but the benefits of their long duration have been offset to some degree by a fall in inflation expectations. Both gold equities and index-linked bonds have the potential to add significant protection from here.

As a result, the year to date performance to the NAV point is -1.4% versus the FTSE All-Share TR which is down 19.9% to the close on 10 March 2020.

The portfolio has around 30% in cash and highly liquid cash equivalents to take advantage of emerging opportunities.

Importantly, if markets deteriorate further from here we believe our derivative protection should continue to perform

Valuation as at date: 10th March 2020

Date: 11th March 2020

Par Value = Fair Value

Pricing Marker = Bid

Enquiries:

[email protected]