Investing in Inflation

It's easier to weather inflation when you're better prepared

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Why invest in inflation-linked bonds?

Inflation erodes the value of capital. It is therefore important to consider the real value (the value after allowing for inflation) rather than the nominal value (before inflation has been calculated) of a bond. As inflation-linked bonds provide a principal and coupon payments that are adjusted by the rate of inflation, they can provide protection against rising prices.

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If 10-year annualised inflation is 2.5%, capital is eroded by 200% over the period.

Source: AXA IM- for illustrative purposes on as at November 2023

AXA IM expertise

AXA IM has over 30 years of experience as an inflation-linked asset manager and our inflation team are recognised experts with a proven track record over different market cycles. 

As market leaders in the development of inflation-linked products, such as the launch of a total return inflation strategy, we offer clients a wide range of inflation linked bond strategies to meet their needs.

Our inflation strategies

At AXA IM, our inflation strategies are active approaches run by a dedicated inflation-linked bond investment team.  Our size gives us a privileged status in our dealings with counterparties and gives us access to policy makers and market participants. 

We combine our global top-down process with ESG scoring to offer investors inflation solutions that are flexible and can adapt to market conditions.

By providing a dynamic exposure that focus’ primarily on inflation-linked bond markets, we believe our strategies offer investors a purist inflation approach.

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AXA IM aims to help investors manage inflation

With innovative inflation strategies designed to weather changing markets, AXA IM offers investors a range of inflation solutions to meet their needs.

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Funds

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Find detailed information on our range of inflation funds, including performance, prices, and commentary from fund managers.

Global
Inflation
Global Inflation Bonds Strategy

Seeks to create performance by investing mainly across inflation-linked bonds issued in OECD countries, over a medium term period.

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Inflation
Global Inflation Short Duration Bonds Strategy

Seeks performance by investing mainly in short duration inflation-linked bonds issued in OECD countries, over a medium term period.

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Inflation
Global Inflation Bonds Redex Strategy

Seeks to provide performance, in EUR, by investing mainly in inflation-linked bonds issued in the OECD while mitigating a parallel global increase or decrease of interest rates curves.

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Euro
Inflation
Euro Inflation Bonds Strategy

Seeks performance by investing mainly in inflation-linked bonds in Euros, over a medium term period.

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Sterling
Inflation
Sterling Index Linked Bonds Strategy

Aims to provide income and capital growth, with the objective of reducing the negative effect of inflation over the long term.

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Total Return
Inflation
Euro Inflation Plus Strategy

To seek to outperform, in EUR, on a yearly basis the Harmonised Indices of Consumer Prices Excluding Tobacco (Benchmark), net of ongoing charges. This annualized target outperformance is an objective and is not guarantee.

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Fixed Income

European Inflation Total Return

Offering investors an inflation solution that aims to adapt to different market environments.

Discover the strategy

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INVESTMENT STRATEGIES

Fixed Income

We cover a broad spectrum of fixed income strategies to help investors build diverse portfolios that can be more resilient to economic and market shifts.

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Risks

No assurance can be given that our inflation strategies will be successful. Investors can lose some or all of their capital invested. Our inflation strategies are subject to risks including counterparty risk, operational risk, liquidity risk, credit risk, and the impact of any techniques such as derivatives. The use of such strategies may also involve leverage, which may increase the effect of market movements and may result in significant risk of losses.

    Disclaimer

    This marketing communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.