Latitude Horizon Fund (BG1TMR8) 126p

Gain to date: 2.4%

Original entry point: Buy at 123p, 14 October 2021

Shares highlighted the potential for this all-weather fund to shine in trickier markets and rising prices.

Pleasingly the fund has delivered a positive return compared with double-digit losses for most major share and bond indices.

The fund’s investment in US inflation-protected bonds have provided a refuge so far in 2022 because of the strength of the US dollar. This has been driven by the US Federal Reserve’s hawkish stance and interest rate increases.

Manager Freddie Lait believes the stocks in the portfolio benefit from, or protect against, inflation in different ways.

Holdings such as oil company BP (BP) and US financial services group Bank of America (BAC:NYSE) benefit from price inflation and higher rates, respectively.

Companies with revenue which automatically reprices in line with inflation such French holdings Vinci (DG:EPA) and Eiffage (FGR:EPA) effectively benefit from inflation-adjusted profits.

Lait highlights other stocks in the fund which have demonstrated good pricing power. Price increases at Meta Platforms (FB:NASDAQ) and Heineken (HEIA:AMS) have been accompanied by continuing strong demand.

SHARES SAYS: The fund provides a useful combination of capital preservation and growth. 

‹ Previous2022-05-12Next ›