Trustnet Magazine 81 February 2022 | Page 66

Up and overseas The other consideration is that , geographically , not all investment regions behave equally with regard to inflation . As well as diversifying from a value perspective , Matthews is taking an international view , noting that inflationary pressures vary by region . “ We ’ ve added to BlackRock Frontiers , giving completely uncorrelated exposure ,” he says . “ It has a decent percentage of holdings exposed to Saudi Arabia , which – given this inflationary environment – should perform well , with a lot of inflation coming through from the oil price .” Performance of stocks vs index since 2020 low
YOUR PORTFOLIO Inflation means you haven ’ t been getting the protection from quality against the increased inflationary environment that you might have hoped for .”

Up and overseas The other consideration is that , geographically , not all investment regions behave equally with regard to inflation . As well as diversifying from a value perspective , Matthews is taking an international view , noting that inflationary pressures vary by region . “ We ’ ve added to BlackRock Frontiers , giving completely uncorrelated exposure ,” he says . “ It has a decent percentage of holdings exposed to Saudi Arabia , which – given this inflationary environment – should perform well , with a lot of inflation coming through from the oil price .” Performance of stocks vs index since 2020 low

FTSE All Share ( 61.2 %)
Reckitt ( 8.2 %)
Unilever ( 2.4 %)
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
-10 %
Apr20
Jun
Aug
Oct
Dec
Feb21
Apr
Jun
Aug
Oct
Dec
Source : FE Analytics
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