Inflation: considerations for real assets
Inflation concerns have been front and centre in conversation for global investors and consumers alike in recent months. Since the beginning of the pandemic, supply-side constraints in the face of strong demand have created disequilibrium, driving
inflation higher, and now the conflict in Eastern Europe will likely exacerbate that risk by boosting commodity prices further.
Advanced Econonmy Inflation
Source: IFM Investors. BLS, Federal Reserve Bank of Dallas
Such a spike in inflation in advanced economies has not been experienced for decades and there is uncertainty as to how and when it will be resolved. Asset owners like IFM Investors, now face the added challenge of navigating this maze of regional
and global inflationary pressures and interpreting the implications for real asset investments.
In this environment, asset owners need to manage debt facilities carefully. Traditional floating rate exposures have worked for debt facilities over the last few decades. We believe it is prudent to seek advice on both the structure of debt facilities,
any hedging required and the level of interest rates (fixed and floating) in order to address interest rate exposures.
About the author
Executive Director, Treasury Services
Joined in 2003
Darren is responsible for managing IFM Investors’ cash portfolios and short term interest rate risk. His responsibilities also include FX portfolio management for internal and external portfolios, and he also drives economic research and analysis within the broader team. Previously Darren was assistant manager in Members Equity’s treasury area, managing the money market asset and liability books, trading interest rate swaps, futures and FX. Darren has also worked with Swiss Re Asset Management in fixed income and as a fund accountant with National Custodian Services. Darren has completed a Masters Degree in Applied Finance.
About the author
Alex Joiner, PhD
Joined in 2016
Alex Joiner is Chief Economist at IFM Investors. He is responsible for the firm’s economic, financial market and geopolitical risk analysis that is key in IFM’s investment process. In this capacity he engages with IFM’s domestic and global clients on macro-investment trends and themes. He is a frequent commentator on economic and markets via traditional and social media and regularly speaks at public forums and conferences. He has over two decades of professional experience in economic and markets and prior to joining IFM was the Chief Economist at Bank of America Merrill Lynch (Australian & New Zealand) after being a senior economist at ANZ Bank. He holds a First Class honours degree in Economics and a PhD in Econometrics from Monash University. Alex is also committee member of the Australian Business Economists.
About the author
Joined in 2019
Ryan supports the dealing and portfolio management functions of IFM Investors’ cash and fixed income portfolios in the US. He also assists in the execution of foreign exchange and derivative overlay strategies for internal and external clients.
Prior to Joining IFM Ryan was a US Government Bond trader at HSBC where he managed a $3bn inventory book comprised of cash and derivative products. Ryan’s years of trading in New York provide a strong network and insight in the US market.
Ryan is a CFA and CAIA charter holder.