Lazard Asset Management has launched a thematic inflation opportunities fund, targeting investors who are looking for alternative methods to attract returns amid spiralling consumer prices.
The Lazard Thematic Inflation Opportunities fund (LTIO) will comprise 40-80 equity holdings with market capitalisations of $1bn or more, spanning five to eight themes designed to capitalise on higher structural inflation,
According to the fund's rationale, investors may be unprepared for a "tipping point in inflation" coming after a prolonged 40-year period of disinflation.
Steve Wreford, portfolio manager on the Lazard Global Thematic Equity team, argued the world is undergoing crucial demographic shifts, as well changes across economic policy, fuelling structurally higher inflation not currently reflected by markets.
LTIO is available for an annual management charge of 1% and a maximum initial charge of 3%.
Looking beyond traditional asset allocation for long-lasting inflation-linked returns
"Against this backdrop, there is a strong need for strategies designed to help clients mitigate the risks and capture the potential investment opportunities of inflation," Wreford said.
"LTIO can help investors target the drivers and outcomes of inflation through diversification between themes and across time horizons, unlike single-theme strategies."
LTIO will offer access to themes including consumer price capture, intangible assets, industrial pass-thru, housing and finance, scarce resources and energy policy.
The fund will be managed by Wreford, alongside John King and Nicholas Bratt, and will take into account ESG considerations in order to maximise returns over the long-term will minimising risk.
Jeremy Taylor, managing director, chief executive officer at Lazard AM, explained that investors will require forward-facing solutions to navigate and capitalise on opportunities arising from higher inflation.
