Bloomberg's recent article on UK Inflation confirms what many had expected, i.e. that UK inflation is on the rise and may soon overshoot the 2% target set by the BOE. Core UK inflation is at 1.5 percent, the highest in two years, and higher than the median forecast of 1.4 percent.
In the US, according to MarketWatch, Yellen also sees benefits in letting inflation exceed the Fed's 2% target.
Our TIP MASTR series, which enforces a minimum 20% allocation to inflation-linked bonds, is designed to perform in this environment.
The GBP version is up 18.8% YTD with an annualised volatility of 7.8% - shown here vs the FTSE100.
The USD version is up 7.0% YTD with an annualised volatility of 4.7% - shown here vs a USD multi-asset benchmark.
Please contact us on firstname.lastname@example.org for more information.