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. At AXA IM, we expect inflation to normalise over the course of 2017. 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 25 years’ experience managing inflation-linked assets and offer an extensive range of investment styles, including liability-driven investment mandates and benchmarked portfolios.

Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.
This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
Past performance is not a guide to current or future performance, and any performance or return data displayed does not take into account commissions and costs incurred when issuing or redeeming units. References to league tables and awards are not an indicator of future performance or places in league tables or awards and should not be construed as an endorsement of any AXA IM company or their products or services. Please refer to the websites of the sponsors/issuers for information regarding the criteria on which the awards/ratings are based. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. Exchange-rate fluctuations may also affect the value of their investment.  Due to this and the initial charge that is usually made, an investment is not usually suitable as a short term holding. 
Due to its simplification, this document 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 document is provided based on our state of knowledge at the time of creation of this document. 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.
Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 7 Newgate Street, London EC1A 7NX.
In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.