Ruffer Investment Management is launching a Pacific fund to invest in the Asia Pacific region on an absolute-return basis.
Ruffer says it is upbeat on the prospects for the Asia Pacific region because of significant improvement in the region's economies, financial systems and corporate sectors over the past few years, as well as the favourable demographics, skilled and competitive workforces and innovative technology sectors.
The fund is starting with an initial total of £7m and will invest in a diversified portfolio of cash, bonds and equities across Japan, China, Hong Kong, South-east Asia, India and Australia. The firm says the fund has no fixed allocation either of asset or geographical class but intends to manage its exposure, including currency, in line with market opportunities.
It will be managed by Ruffer director – Asia/Pacific Andrew Ballingal, who lives in Hong Kong and has covered the sector for over 20 years. Total assets managed by Ruffer stand at £790m, including over £150m in Oeics.
Asia Pacific director Andrew Ballingal says: “We recognise that the region has, historically at least, been prone to periodic bouts of high volatility. We believe that our approach, combining active asset allocation with skilful security selection applied across the full range of the region's markets, will allow investors to participate fully in the Asia Pacific opportunity at an acceptable level of risk.”