Help protect long-term purchasing power
Inflation often appears quickly and unexpectedly, making it important for long-term investors to be prepared in all market environments. The Fund aims to help investors protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns primarily from Global Inflation-Linked Bonds.
Why Invest In This Fund
A high quality inflation hedge
Active management has helped the fund deliver short- and long-term returns solidly ahead of inflation, while the portfolio’s investment-grade orientation has provided a smoother ride than other real return assets such as commodities and real estate.
Potential diversification benefits
While traditional asset classes such as stocks and bonds usually move inversely to inflation, Inflation-Linked Bonds tend to move in the same direction as inflation. Investing in assets with low correlations to one another, i.e., assets influenced by different factors, can enhance a portfolio’s diversification, potentially lowering overall volatility. Like bond investments in general, Inflation-Linked Bonds can decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.
Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates.
By drawing on the expertise of our global real return team, the Fund is able to take advantage of our macro inflation outlook and bottom-up research capabilities.
Bloomberg Barclays World Government Inflation-Linked Bond AUD Hedged Index
PRIMARY BENCHMARK DESCRIPTION
Bloomberg Barclays World Government Inflation-Linked Bond AUD Hedged index that measures the performance of the major government inflation-linked bond markets. The Index includes inflation-linked debt issued by the following countries: Australia, Canada, France, Sweden, United Kingdom, and the United States. It is not possible to invest directly in an unmanaged index.
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