Lazard Asset Management announced the launch of its Lazard Thematic Inflation Opportunities Fund, intended to capitalise on the shift to a higher inflationary environment.
The actively-managed thematic equity fund seeks to achieve long-term capital growth by investing along a thematic approach centred on rising inflation.
The theme’s investment approach is informed by the key causes and effects of the “structural shift to a higher inflationary environment,” Lazard stated.
The Lazard Thematic Inflation Opportunities Fund will be managed by Steve Wreford, John King and Nicholas Bratt.
The trio of portfolio managers previously worked on Lazard’s Global Thematic and Global Thematic Focus funds.
It will identify companies that are likely to benefit from global long-term market trends.
For example, this will include companies with strong pricing power that is passed onto customers and companies that benefit from higher commodity prices.
Wreford said: “The world is undergoing important shifts in demographics as well as monetary and fiscal policy, which could fuel structurally higher inflation that is currently not reflected by market consensus.
“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.”
The Lazard Thematic Inflation Opportunities Fund will primarily invest in established companies located around the world which have a market capitalisation of greater than $1 billion.
It may invest up to 20% of its assets in companies located in emerging markets and up to 10% in units or shares of other investment funds.
It will also incorporate some ESG considerations.
“[The new fund] can help investors target the drivers and outcomes of inflation through diversification between themes and across time horizons, unlike single-theme strategies,” Wreford added.
Lazard Asset Management, which has $274 billion in AUM, is headquartered in New York but has offices in London and Paris.
