What is inflation?
Inflation is the measure of how the general level of prices rises over time and how, as a result, the purchasing power of money falls over the same period. It is usually found in one of two instances: when an economy is growing and demand for goods is strong or when the supply of money rises rapidly.
Why consider inflation strategies?
In the years following the global financial crisis, both growth and inflation have been in fairly short supply, especially in developed markets. This is, however, beginning to change. While the reappearance of inflation has been long awaited, it is returning at a time not only of heightened geopolitical risk and the prospect of increased volatility but also to an environment where yield can be difficult to find.
Our approach to inflation
Our focus is on income generation and downside mitigation, while at the same time aiming to optimise clients' risk/return profile over the market cycle. We have more than 27 years’ experience managing inflation-linked assets and offer an extensive range of investment styles, including liability-driven investment mandates and benchmarked portfolios.