Lyon: Inflation will reignite volatility

Sebastian Lyon has warned volatility will increase on his £894m Trojan fund as higher inflation and falling wages impact the markets.

The chief executive of Troy Asset Management has focused the fund on blue chips to reflect his cautious approach, and said volatility will increase over the next few years as underlying economic worries begin to surface in the markets. “Investors need to be aware momentum investing has returned, which does not suit our value-based, qualitative approach.” He added in previous periods when there was a lack of attractive investment opportunities, fund managers were able to turn to cash to protect capital and produce a positive real return. “In an inflationary but zero interest rate wo...