Trustnet Magazine 60 March 2020 | Page 38

In focus TRUSTNET concept that changes the rules for everything. “It changes the rules for investors because they need to think about what happens next.” It is too early to judge the performance of Lazard Global Thematic Focus. However, Lazard Global Thematic has made 140.9 per cent since launch in October 2007 compared with 166.83 per cent from the MSCI World index. FACT BOX MANAGERS: Steve Wreford, Nicholas Bratt & John King / LAUNCHED: 10/03/2020 / FUND SIZE: $17.3m / AMC: 1% CROWN RATING N/A PERFORMANCE OF FUND VS SECTOR & INDEX SINCE LAUNCH MSCI World Lazard Global IA Global (166.83%) Thematic (140.9) (114.52%) 200% 150% 100% 50% 0% -50% L and people think it’s going to go to the moon. “But actually, technology is connected by an elastic band to the rest of the world and eventually the rest of the world catches up – and that means that regulation will, too. Public attitudes towards these companies are going to change. People are worried about the power that they have.” As a result, Wreford is making a more focused play within the tech sector on artificial intelligence (AI). The second trend is sustainability as people become more conscious about climate change and their own impact on the environment. Third is geopolitics, where there is the potential for heightened risk over multi-lateral issues such as trade. “It matters a great deal for companies who have spent a quarter of a century outsourcing everything they do to China and Asia,” said Wreford. “Now that framework of Lazard Global Thematic Focus stability is under threat, so we have to think about what will replace it.” Last up is monetary policy. The manager said that a decade of ultra-low interest rates is likely to have changed people’s attitudes towards money. “If it’s zero per cent interest, that means money is free. And if something is free, it’s usually not worth anything,” he added. “What if money isn’t worth anything anymore? That is a very dramatic This fund aims to tap into four “cornerstone” themes: technology, sustainability, geopolitics and monetary policy aunched earlier this year, the Lazard Global Thematic Focus fund aims to tap into structural themes that will shape the global economy over the next decade. “Profound transformations are taking place in the global economy, as digitisation becomes universal and environmental threats, societal anxieties and regulation gain ever- greater prominence,” said Lazard. The fund is headed up by Steve Wreford, Nicholas Bratt and John King, who also run Lazard Global Thematic. They invest in four cornerstone themes, the first of which is technology. While Wreford believes the technology sector will be one of the “tent poles” holding up the global economy in a decade’s time, it won’t be through the stocks that everybody is investing in now. “Technology is like a rocket ship,” the manager explained. “It takes off [ FUND ] 38 / 39 Source: FE Analytics trustnet.com