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Brij Khurana

Multi-Asset Portfolio Manager

Brian Garvey

Multi-Asset Portfolio Manager

Thomas Obaseki

Multi-Asset Portfolio Specialist

Publication date: Dec 2016

Opportunistic Inflation Sensitive Bond: A new approach to hedging inflation risk

Opportunities and risks | Appears in: Fixed income, Outcomes-focused fixed income investing, Defined contribution plans, Insights for DC sponsors in 2017, Diversification solutions

The authors outline a strategy that aims to hedge inflation risk more effectively and deliver higher total returns than traditional inflation-linked bonds (ILBs) in inflationary regimes, with similar volatility. OISB pairs a core allocation to developed market ILBs with opportunistic allocations to other fixed income sectors that tend to be more directly linked to sources of future inflation.


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