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Inflation volatility demands investors think differently

Portfolio Construction Forum – Viewpoint
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Fiona Ker
Fund Manager

Regime identification is critical to successful portfolio construction strategy. 

The asset management industry has operated in a disinflationary world for 40 years – a world where capital takes the spoils. If labour is to become more dominant, what does that mean for asset allocation?

As we move into an era which is both more inflationary and more volatile, asset allocators will need to adapt in order to deliver returns. There will be significant opportunities to do so – but a different set of tools will be required. Correlations that have held firm in a low inflation, falling interest rate environment will become unstable, testing traditional portfolio theory. A dynamic and unconstrained approach to asset allocation will become essential.

To earn Continuing Education (CE/CPD) hours for watching this video, visit portfolioconstructionforum.edu.au. Portfolio Construction Forum is the specialist, independent, investment continuing education, accreditation and certification service.

Fiona Ker
Fund Manager
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Piers Wheeler
Director – Institutional
Developing and executing asset management strategy for capital raising and strategic relationship management. Coverage includes EMEA, Asia and Australia. Piers joined Ruffer in 2021, having previously worked with asset management firms including Eastspring, AMP Capital and LEK as a strategic consultant. He holds a MA from the Bayes Business School and a BA (Hons) from the University of Oxford.
Annabel Paterson
Annabel Paterson
Senior Associate – Institutional
Joined Ruffer in 2021, having graduated with a first class honours degree in land economics from the University of Cambridge. After two years working with the UK Private Wealth team and completing her IMC and CFA Level I qualifications, she now supports Ruffer’s global business development and client servicing efforts.

Ruffer holds Australian financial services licence no. 526358 under the Corporations Act 2001 (Cth) authorising it to provide certain financial services to wholesale clients only. Ruffer is not licensed to provide financial services to retail clients in Australia. This is provided for general information purposes only for ‘wholesale clients’ only. Reliance should not be placed on this information as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation. Whilst every effort is taken to ensure the information is accurate, its accuracy, reliability or completeness is not guaranteed.

The views expressed in this publication are not intended as an offer or solicitation for the purchase or sale of any investment or financial instrument, including interests in any of Ruffer’s funds. The information contained in the publication is fact based and does not constitute investment research, investment advice or a personal recommendation, and should not be used as the basis for any investment decision. This publication does not take account of any potential investor’s investment objectives, particular needs or financial situation. This publication reflects Ruffer’s opinions at the date of publication only, the opinions are subject to change without notice and Ruffer shall bear no responsibility for the opinions offered. Read the full disclaimer.

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London
Ruffer LLP
80 Victoria Street
London SW1E 5JL
Paris
Ruffer S.A.
103 boulevard Haussmann
75008 Paris, France
New York
Ruffer LLC
300 Park Avenue
New York NY 10022
Edinburgh
Ruffer LLP
31 Charlotte Square
Edinburgh EH2 4ET