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Inflation-linked bonds to protect against losses in purchasing power

Given the high levels of government debt in developed countries and contradictory assessments of inflation risk, the issue of inflation protection is relevant to investors globally. This makes investment-linked bonds a valuable strategic investment.

LGT Capital Partners has over ten years of experience in the area of inflation-linked bonds. The firm manages investments in inflation-linked bonds totaling USD 3 billion, making it one of the market leaders.

LGT Capital Partners' solutions in inflation-linked bond investing comprise an actively managed, broadly diversified portfolio:

  • that invests in investment-grade inflation-linked bonds issued by private and public-sector borrowers worldwide.
  • that investors can use to tap into the potential of the emerging markets through the use of inflation-linked bonds issued by these countries.

LGT Capital Partners' experienced team focuses on an integrated, systematic and proven investment process, drawing from the field of behavioral finance. This allows investors to tap into alpha sources such as maturities, yield curves, country selection, credit segments, bond selection and currencies. 

Inflation and emerging markets

Emerging markets are the driving force for global growth and offer attractive yield spreads for bond investors. Nevertheless, these countries exhibit a greater inflation risk in both structural and cyclical terms. This means that inflation-linked bonds are an important startegy for investors wishing to participate in the growth of these countries, because they offer attractive real yields in countries with solid debt profiles. Inflation-linked emerging-market bonds also make a valuable contribution towards the further diversification of portfolios.

For more information on investment solutions, please contact the specialists at LGT Capital Partners.

Contact us

LGT Capital Partners Ltd.
Phone: +41 55 415 9600

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