The fund will be managed by Mihir Worah, managing director and head of the real return portfolio management team. The underlying assets, which will include gold, real estate, emerging market currencies and inflation-linked bonds, will be actively managed with the aim of reducing downside risk, and hedging against rising inflation.
Worah said: “The array of policies implemented by developed country governments and central banks to address the global financial crisis has resulted in unsustainably high debt levels and zero-bound nominal interest rates. While these policies have successfully suppressed the risk of deflation and depression risk posed by the crisis, they have also increased the risk of higher inflation in the years ahead”
The fund is part of the firm’s Ucits-compliant Global Investor Series (GIS), which includes 45 funds with an aggregate $150bn under management.
Adrian Lowcock, senior analyst at Hargreaves Lansdown, said: “These types of funds are useful for long term, institutional investors and discretionary fund managers but inflation hedging is really core to all investment portfolios. The aim of course is to get above inflation returns, and being exposed to inflation-hedged assets is essential in doing this.”
Investors will be able to access the fund via retail and institutional share classes in various currency denominations.
