A global portfolio of investment-grade inflation-linked and nominal government securities
Enhanced protection against inflation shocks
An experienced, specialist management team dedicated to government bond strategies
We believe inflation-linked bond markets exhibit inefficiencies that can be repeatedly exploited by specialist portfolio managers.
Our systematic investment process focuses on careful analysis of the fundamental drivers of asset prices – notably macroeconomic developments, market microstructure considerations and relative value relationships. This allows us to identify investment opportunities to build a diversified set of exposures that will generate consistent excess returns with limited overall volatility.
Our Inflation-Linked Bond strategy follows a four-step process:
- Research framework: combine quantitative and qualitative insights from several teams and forums
- Idea generation: evaluate top-down fundamental developments and bottom-up market microstructure considerations
- Strategy selection: ideas are crystallised into implementable strategies such as duration, yield curve and breakeven inflation trades
- Portfolio construction
Team and resources
Our Global Sovereigns, Inflation and Rates team is based in Paris and New York. Cedric Scholtes, who has more than 19 years of industry experience, leads the team.
Team members have years of expertise in sovereign and inflation-linked bond portfolio management, as well as extensive market experience, including market making and tenures at the Federal Reserve and the Bank of England.
The team benefits from access to sophisticated proprietary tools including a robust inflation-forecasting model, as well as our global trading and risk management platform, Sustainability Centre, Quantitative Research Group and Macro Research team.