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.

This page is for informational purposes only and does not 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 a solicitation or as investment, legal or tax advice. The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors. Opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. No guarantee, warranty, or representation is given as to the accuracy or completeness of this material. Reliance upon information in this material is at the sole discretion of the reader. This material does not contain sufficient information to support an investment decision.