Portfolio Update

Ruffer Investment Company Limited
22 July 2005


                       RUFFER INVESTMENT COMPANY LIMITED
 (a closed-ended investment company incorporated in Guernsey with registration
                                 number 41996)


Investment Objective

The principal objective of the Company is to achieve a positive total annual
portfolio return of at least twice the Bank of England base rate (4.75 per cent
as at 31 December 2004) by investing in internationally listed or quoted
equities or equity related securities (including convertibles) or bonds which
are issued by corporate issuers, supra-nationals or government organisations.

Investment Review

From the launch date on 8 July 2004 to 8 July 2005 the NAV rose 15.2% (net of
fees and expenses and inclusive of a 0.5p dividend), compared to the objective
return of 9.46%, being twice the time weighted Bank of England base rate over
the period.

We come to the end of the first year of the life of the investment company
reasonably satisfied with the performance. Every aspect of the portfolio - short
/medium dated gilts, Swiss bonds, Japan and oil have each played a significant
part in producing the return, and their good work has not been undone by any
egregious mistakes in stock selection.

In the interim report (December 04), I articulated the fear that the world could
be facing something of a financial crisis. I addressed the question of timing by
saying that this could be something that could either happen quite quickly, or
be long delayed. Six months on it still has not happened. I further raised the
possibility that the prediction of a financial crisis could be quite wrong. What
we have tried to do within the investment company is to create a balance of
assets designed to bring about a decent return under any of these three possible
outcomes.

Jonathan Ruffer
Ruffer LLP
July 2005


Ten largest holdings
08 July 2005

Stock                          % of Fund
UK Treasury 4% 2009            8.7
Swiss Govt. 3.5% 2033          8.4
UK Treasury 5% 2008            8.3
Swiss Govt. 4% 2028            8.2
Austria 3% 2009                8.2
Barclays 2009 US Bear Note     7.0
Swiss Govt 4% 2049             6.4
BT Group                       4.9
Japan Tobacco                  4.3
UK Treasury 5.75% 2009         4.3


Geographical Allocation

Australia Equities             2%
Canada Equities                2%
Japan Equities                 12%
Switzerland Equities           3%
US Bear Note                   7%
Malaysia Equities              1%
France Equities                1%
UK Equities                    12%
UK Bonds                       28%
US Equities                    1%
Swiss Franc Bonds              31%


Asset Allocation

Financials                     1%
Oil                            3%
Telecoms                       7%
Mining                         3%
US Bear Note                   7%
Transport                      5%
Non Cyclical Consumer Goods    10%
Industrial                     4%
Media                          1%
Swiss Franc Bonds              31%
UK Bonds                       28%


Ruffer LLP



Date: 22 July 2005


Enquiries:

Jonathan Ruffer      44 (0) 207 529 7900

Steve Russell        44 (0) 207 529 7900


                      This information is provided by RNS
            The company news service from the London Stock Exchange