261. Navigating opportunities and risks in an inflationary environment

James Mee, co-head of multi-asset strategies and manager of the Waverton Multi-Asset Income fund, provides a comprehensive overview of the wide range of opportunities available to multi-asset investors. James delves into Waverton's unique approach to risk management, emphasising that it goes beyond just volatility and encompasses factors like inflation and potential permanent capital loss. He explores the effective strategies employed during uncertain periods, including the use of hedging within the fund to mitigate these risks.The latter part of the episode focuses on the critical topic of inflation and its long-term implications. James analyses various factors such as China's working population, the influence of digitalisation, and the impact of artificial intelligence. To illustrate these concepts, James finishes by sharing two examples from the fund's portfolio: the Chicago Mercantile Exchange and PRS REIT.<br/><br/>What’s covered in this episode: How the Waverton Multi-Asset team defines riskHow the manager manages risk in the fundWhy investing directly in equities and not funds gives more control over riskHow the manager protects capital during periods of market volatilityThe use of hedging in the fundThe manger’s view on inflation in the UKThe inflationary impact of de-globalisation How the decreasing working population influences inflationThe disinflationary force of digitalisationWill artificial intelligence cause a disinflationary impact in years to come?Chicago Mercantile Exchange: what it is and why it looks attractive todayWhy the fund is adding to propertyThe fund’s increased exposure to investment grade fixed incomeHow to invest for the long-term during market uncertaintyMore about the fund: The Waverton Multi-Asset Income fund leverages the broader capabilities of Waverton Investment Management to construct a diversified portfolio encompassing direct equities, fixed income, and alternative strategies. The team prioritises risk management as the core of its investment approach, with a focus on safeguarding capital during periods of market weakness.<br/><br/>Learn more on fundcalibre.com<br/><br/>Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.