Dynamic Inflation System

Investment objective

The portfolio is designed to outperform traditional asset classes in an elevated or rising inflation environment and will aim to deliver a return of CPI +5% net of frees over the market cycle.

Key features

Portfolios are constructed around the principles of:

• Diverse asset allocation across inflation sensitive assets
• Innovative inflation hedging strategies
• Active management driven by a thorough understanding of the drivers behind the inflation environment
• The portfolio's strategic choice of assets have been selected to provide protection from the three broad drivers of inflation:
• A cyclical component - the expected level of demand in the US economy relative to output drives input costs and short-term pricing pressures
• A structural component - the monetary regime and shifts in global trade, production and exchange rates between emerging and developed markets result in changes in long-term external pricing pressures
• A shock component - a high weighting of volatile commodities in the inflation baskets can cause sudden spikes in price levels

Investment options

• Separate accounts*