Investment Week article written by Dan Jones and Natalie Kenway regarding inflation. Charteris CEO Ian Williams is interviewed alongside peers for the piece
“The best way for a saver to have pure indexation is to buy utility shares. They yield 5% and their dividends will go up on an RPI adjusted basis. It is a no brainer,” he said.
He added investors concerned over both inflation and a spike in bond yields could look to use swaps.
“If it was your view that government bond yields are too low, inflation swaps could provide inflation protection and hedge out interest rate exposure. But our view is bond yields in general will stay low, and longer-dated bond yields could even fail.”
To read the article – click here