Inflation Protection

Inflation-linked bonds provide diversification and inflation protection benefits for investors in multi-asset portfolios. When nominal bond yields rise as a result of the market pricing in higher rates of inflation, fixed income investors lose money. Investors in inflation-linked bonds however, can make money as the coupon they receive is linked to an inflation benchmark. Inflation-linked bonds are under-owned by the investment community and as such, offer good upside potential in the event of an unexpected breakout of inflation across the globe. While returns have been a modest 2-3% per annum for Euro inflation-linked bonds in recent years, UK and US ILB's have delivered 5-7% per annum over the last decade. 


Positive returns in a rising inflationary environment are hard to come by, which is why ILB's should form a core part of your multi-asset portfolio as we transition from a period of declining interest rates and inflation to a more uncertain future. 

At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader  investment strategies, please get in touch at or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.


The information contained herein should not be taken as an offer of investment advice or encourage the purchase or sale of of any particular security or investment. It is provided for information purposes only. Secure Investments and its content providers makes no representation or warranty of any kind with respect to the services described, analysis or information obtained arising from use of the pages on this website. Information provided is obtained from sources deemed to be reliable and is provided solely on a best efforts basis. Secure Investments and its content providers do not guarantee the completeness or accuracy of such information and do not accept any liability for any loss or damage arising out of negligence or otherwise as a result of use or reliance on this information, whether authorised or not. The use of the website is at the user's sole risk. Not all recommendations are necessarily suitable for all investors and investment policy must be tailored to suit the circumstances of the individual. We recommend that readers consult their professional adviser before acting on any advice or recommendation on this website. The value of any investment may fall as well as rise and you may not recover the full amount originally invested. Past performance or simulated performance is no guarantee of future investment returns. The value of your investment may be subject to exchange rate fluctuations which may have a positive or adverse effect on the price or income or the securities.