Ruffer Total Return In Euroland

shoi

Ruffer have done ok for me in the past.  I like their "philosophy" aka sales patter.

I now live in Euroland (and am retired), and am worrying about inflation, so I think I need to increase my appetite for risk, because simple savings accounts are so far behind

So one fund that appeals is Ruffer Total Return International in Euros, but I can´t work out in my head if this is too exposed to GBP:EUR exchange rate as it has a lot of holdings in UK treasury.  Advice please.

Thanks

GeoffTF

shoi said:
I now live in Euroland (and am retired), and am worrying about inflation, so I think I need to increase my appetite for risk, because simple savings accounts are so far behind

It is that sort of reasoning that gets people in at the top of a bubble. You are lucky to be in Euroland. Inflation there will probably not be as bad as it is here.

Thrugelmir

In January 2022 the UK only sat 0.2% above the Eurozone average. Belgium , Netherland and Spain were considerably higher.  UK holidaymakers this summer maybe in for a shock. 

Voyager2002

shoi said:

So one fund that appeals is Ruffer Total Return International in Euros, but I can´t work out in my head if this is too exposed to GBP:EUR exchange rate as it has a lot of holdings in UK treasury.  Advice please.

Thanks

Since you are mainly spending money in Euroland, you don't need to worry about prices in the UK now by how much they increase (UK inflation). What does matter to you is the exchange rate: if your savings are in pounds then you want to be sure that each pound will continue to buy about Euro 1.10 for the forseeable future. If the UK were to suffer higher inflation than Euroland, then that might mean that the value of each pound (expressed in Euro) would decline, but many other factors are involved in the exchange rate.

You might consider looking for a few funds like this, with holdings in Euro government bonds as well as Gilts.

MarkCarnage

So one fund that appeals is Ruffer Total Return International in Euros, but I can´t work out in my head if this is too exposed to GBP:EUR exchange rate as it has a lot of holdings in UK treasury.

The £ return is hedged back to Euros taking the direct exchange rate out of the equation, at least directly. The inflation linked bonds held by Ruffer  are largely UK Government, so to that extent you're not hedged against Eurozone inflation, but I would suggest it's a lot better than nothing.