Capital preservationIncomeGrowth

What is Inflation?

Inflation is the measure of how the general level of prices rise 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 Protection?

In the years following the global financial crisis, both growth and inflation have been in fairly short supply, especially in developed markets. But it looks as though 2016 was the year that began 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 hard to find. 

Our approach to Inflation Protection

Our Multi-Asset Inflation strategy seeks to deliver returns in excess of inflation by exposing clients to assets that should benefit from inflation and keep pace with it. We emphasise assets that tend to be positively exposed to inflation dynamics and benefit from the investment capabilities of AXA Investment Managers across traditional and real assets.

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