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LIVE MARKETS-"Boring but booming"

By Reuters News

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

“BORING BUT BOOMING”

A lot of market excitement is focused on AI and tech at the moment.

And while Bertrand Cliquet, portfolio manager for Lazard Asset Management’s Global Equity Franchise Fund, certainly thinks it’s worth paying attention to that theme and all it brings with it, he also makes a case for hard assets that serve seemingly less jazzy parts of the economy.

Or in other words, “boring but booming” parts of the market.

“We operate in an industry and infrastructure that has a number of long-term, solid drivers of organic growth,” Cliquet said.

AI and data centres is part of that, but he said there’s also value in companies where growth is, for example, underpinned by energy transition policies, such as transport and resource management.

“The greater recurrence of extended periods of droughts, for example, will force water companies to invest very heavily in new reservoirs and how they cope with water resources. That’s solid long-term investment opportunities we can certainly rely on.”

Cliquet also highlighted the creation of for example new airways, runways and motorways.

“For us, the important point is not to overpay for the asset, assess those ranges, and any blip on AI, frankly, doesn't have much impact on our portfolio.”

(Sophie Kiderlin)

EARLIER ON LIVE MARKETS:

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