Until the spring of last year, the trust had traded at around face value, but since then it has been discounted, currently around 4.7%. This is a fund that should get you up at night. To buy.
For an even stronger rest, the explicit “wealth preservation” funds are your best bet. Our favorite has long been the Ruffer Investment Companyfor the first time six years ago.
Contrary to Finsbury Growth & Income’s focus on resilient stocks, Ruffer holds a wide variety of assets and isn’t afraid to change the mix as circumstances change. For example, he opportunistically bought some pegged gilts this month when the price crashed.
He said the gilding chaos “gave us the opportunity to add to these key assets at extraordinarily depressed prices, before the Bank of England was forced to step in to restore order.” This reassures us that the management team has lost none of its sharpness since the departure of Hamish Baillie in July.
The fund also holds the US equivalent of UK linkers and derivative instruments that protect against declines in asset prices, as well as gold and cash. But its exposure to the stock market is the lowest it has ever been at 14%. The net asset value of the fund has increased steadily since its launch in 2004 by a cumulative 295%; its biggest peak-to-trough drop was just 8.6%.
As alternatives, we continue to evaluate Capital Gear and Personal assets.
Questor says: buy
Symbols: FGT, RICA
Closing share price: 799p, 300.5p
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