Investing in Inflation

It's easier to weather inflation when you're better prepared

Why invest in inflation-linked bonds?

Inflation erodes the value of capital. It is therefore important to consider the real value (the value after allowing for inflation) rather than the nominal value (before inflation has been calculated) of a bond. As inflation-linked bonds provide a principal and coupon payments that are adjusted by the rate of inflation, they may provide protection against rising prices.

If 10-year annualised inflation is 2.5%, capital is eroded by 200% over the period.

Source: AXA IM- for illustrative purposes on as at November 2023

AXA IM expertise

AXA IM has over 30 years of experience as an inflation-linked asset manager and our inflation team are recognised experts with a proven track record over different market cycles. 

As market leaders in the development of inflation-linked products, such as the launch of a total return inflation strategy, we offer clients a wide range of inflation linked bond strategies to meet their needs.

Our inflation strategies

At AXA IM, our inflation strategies are active approaches run by a dedicated inflation-linked bond investment team. Our size gives us a privileged status in our dealings with counterparties and gives us access to policy makers and market participants. 

We combine our global top-down process with ESG scoring to offer investors inflation solutions that are flexible and can adapt to market conditions.

By providing a dynamic exposure that focus’ primarily on inflation-linked bond markets, we believe our strategies offer investors a purist inflation approach.

Video

AXA IM aims to help investors manage inflation

With innovative inflation strategies designed to weather changing markets, AXA IM offers investors a range of inflation solutions to meet their needs.

Getting to grips with inflation

Show video

Module 1 - Adding to the toolkit: inflation-linked bonds
Show video

Module 2 - Why duration is important

Risks

No assurance can be given that our inflation strategies will be successful. Investors can lose some or all of their capital invested. Our inflation strategies are subject to risks including counterparty risk, operational risk, liquidity risk, credit risk, and the impact of any techniques such as derivatives. The use of such strategies may also involve leverage, which may increase the effect of market movements and may result in significant risk of losses.

    Disclaimer

    This website is published by AXA Investment Managers Asia (Singapore) Ltd. (Registration No. 199001714W) for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation or particular needs of any particular person and may be subject to change without notice. Please consult your financial or other professional advisers before making any investment decision.

    Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested. Past performance is not necessarily indicative of future performance.

    Some of the Services and/or products may not be available for offer to retail investors.

    This publication has not been reviewed by the Monetary Authority of Singapore.