Inflation expectations the price driver to watch – Hooker

Since early 2013, UK CPI has fallen month-on-month from just under 3% to 0.1% at the end of May.

20150610-12 PA Congress interview BNY Mellon
20150610-12 PA Congress interview BNY Mellon
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      Quite obviously, inflation can only go one way from here while the timing of any rise is unknown to everyone, no matter what the experts may tell you.

      However, it is the expectation of interest rates rising that David Hooker has in mind when running his Insight Inflation-Linked Corporate Bond fund.

      “It is all well and good saying inflation is not a problem and we’ll deal with it later on, but markets are forward-looking and it’s inflation expectation that drives pricing,” he explains.

      Here, David explains where he looks for the “raw materials” of his fund, overseas as well as in the UK, and how he is gradually changing his duration right now.

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