Bearish stance leads Stride to look to index-linked gilts

Axa IM Distribution range manager takes gloomy view on financial and economic climate and points to gilts as safe haven against inflation

Axa IM is pointing to UK index-linked gilts as the best protection against inflation. With capital preservation and income key investment priorities, the group's Distribution range is heavily weighted to the sector. The expected issuance of £20bn in index-linked gilts this financial year was cited as a further incentive. Fund manager Jim Stride says: "Index-linked gilts have distinct return, risk and correlation characteristics and are either uncorrelated or negatively correlated with other major asset classes. As they are Government guaranteed there is little risk of default and the ...