The best inflation protection you can get

The Rules of Investing

Livewire Markets

The prophets of doom are blowing their recession horns. Accordingly, investors want to hold assets that can act as bulwarks against whatever's driving recession - that being inflation in today's case. And that's what today's edition of The Rules of Investing is all about.

Livewire's James Marlay sat down with Warryn Robertson, who is a portfolio manager and analyst at Lazard Asset Management. He's responsible for managing the Global Equity Franchise Strategy as well as Lazard's well-known Global Listed Infrastructure Fund - which has roughly $20 billion under the hood. 

Today's episode will focus on infrastructure - a topic we know is front of mind for our readers. In our recent survey, infrastructure ranked third as the asset class to which they're most likely to increase exposure over the next 12 months. 

Warryn founded the infrastructure strategy back in 2005 and it has returned 10.7% per annum since then. 

Managed Fund
Lazard Global Listed Infrastructure Fund
Alternative Assets

You'll hear why infrastructure is "the best inflation protection you can get".  But don't go running off to market before pressing play on this episode - as it can't be just any old infrastructure. 

He also explains how Lazard values its assets, the key thing the whole investment industry missed during COVID, the increasing trend towards privatisation of infrastructure and a near monopoly asset that he believes offers compelling value. 

This episode was recorded on June 23, 2022. 

 

Timestamps

  • 1:50 - Beginnings at Lazard
  • 6:30 - How Lazard value assets 
  • 8:30 - Outlook for markets
  • 9:10 - The error everyone made during the pandemic
  • 15:00 - Pivoting away from US infrastructure
  • 16:45 - The best inflation protection you can get
  • 24:00 - The 3 tenets of preferred infrastructure
  • 26:30 - Implied vs explicit inflation protection
  • 37:00 - A compelling opportunity
  • 40:00 - 3 favourite questions

Reading Recommendations

The Warren Buffet Way, by Robert Heller. Available at Amazon and Booktopia

Reminiscences of a Stock Operator, by Edwin Lefevre. Available at Amazon and Booktopia

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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...

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