The Contrarian Investor: Should investors fear the return of inflation?

The Contrarian Investor: Should investors fear the return of inflation?

Even though I admit to being something of an investment trust enthusiast, I rarely bother to peruse the manager statements for the funds I own.

But there are exceptions to the rule, including Ruffer Investment Company. This fund is not exactly mainstream to be fair, but what is striking about the managers' latest update is the fund's positioning for inflation risk. Obviously, the Ruffer team has been worrying about the inflationary possibilities implicit in QE for many moons now, but their current market positioning is nevertheless startling; index-linked securities account for almost half the portfolio (44%). Dig into the narrative and the managers' fears are painfully obvious - excessive debt and the likelihood of the re...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Markets

Josh Mayne, Lowes Financial Management

Structured products in Q2: Positive returns in volatile market

Q2 2022 maturity results

Josh Mayne
clock 09 August 2022 • 2 min read
Ritu Vohora, T. Rowe Price

Ritu Vohora: Bear market rally or a bullish inflection?

Pain for equities

Ritu Vohora
clock 08 August 2022 • 5 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read