Inflation-linked EMD offers investors an interesting and complimentary exposure for their fixed income portfolios. Inflation-linked strategies in EMD can provide investors with a form of insurance, or hedge, against both ‘expected’ and ‘unexpected’ inflation and are particularly popular with domestic investors in the major EM markets.
Our EM local currency inflation strategy uses sophisticated indexing techniques to deliver the performance of EM local currency inflation markets. We have a long-standing track record in EM inflation, having managed a strategy benchmarked against the Bloomberg Barclays Emerging Markets Inflation Linked 20% Capped Index since April 2013. We are one of the few asset managers to have knowledge and expertise in this niche, but growing, sector of the EMD universe.
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