This is the sixth episode of our podcast “The world of Fund Selection” conducted by Carla Solera, Investor Relations Specialist at RankiaPro Europe.
In this sixth episode of the world of fund selection titled “Inflation and fund selection” we had Jean-Baptiste Fargeau, Fund Selector Manager at Banque de Luxembourg Investment, talked about inflation, and the effect on the markets, and how this affects the way the asses the different markets for their portfolios.
“Inflation doesn’t change the way we select the funds, but it probably affects the way we asses the markets”
“What is important for a fund selector is Inflation can be divided into two parts or two baskets, the first one is the core basket or core inflation and it includes the less volatile goods and services, so in this core inflation we are going to find anything related to apparels, to education, to communication, medical care or pension and housing. And then we have the second basket or second type of inflation, which is the total or headline inflation. In this inflation we are going to measure all the components we mentioned before plus food and transportation”
“Inflation is probably not as transitory as planned by the Fed in fact. They were planning a deceleration of the inflation by the first quarter of 2022, probably the end of 2021 as well, so now we see inflation should remain quite strong perhaps until the end of the first half of 2022”Jean-Baptiste Fargeau, Fund Selector Manager at Banque de Luxembourg Investment