The Amundi Funds Bond Emerging Inflation Fund is a Luxembourg-based Sicav that will be based against the Barclays emerging markets government inflation-linked ex-Colombia, ex-Argentina constrained index. It is registered for sale in the UK.
The firm suggests the continued growth of emerging markets comes with rising inflation, particularly the increase in food and commodity prices.
“In this environment, inflation-linked bonds are among the only investment vehicles to offer real protection against inflation through indexation and liquidity,” a spokesman said.
Other benefits against conventional bonds include a redemption price indexed to inflation and therefore more interesting than a fixed-rate bond, while inflation-linked bonds offer a lower coupon than conventional bonds.
The universe of bonds the fund is able to choose from has increased to eight issuing countries and more than 70 bonds.