Exchange-traded fund (ETF) provider iShares is planning to extend its inflation-linked bond ETF range, at a time when rising inflation pressures continue to remain top of the agenda for the global economy.

The existing iShares inflation-linked ETFs listed on the London Stock Exchange include the iShares Euro Inflation Linked Bond, iShares £ Index-Linked Gilts, and iShares $ TIPS.

Alex Claringbull, senior fixed-income portfolio manager for iShares, says, ‘Most investors have a desire to preserve the real value of their accumulated wealth, especially as they approach the time when that wealth is required to fund current liabilities. In this context, inflation-linked bonds are the only generic asset class that offers certainty – a known real rate of return over the life of the bond.’

The global inflation-linked asset class has exploded over the past 25 years, from virtually zero to about US$1.5 trillion in insurance; and as Claringbull points out, this has been driven by investor demand, which shows no sign of abating.

‘In this current climate, and as the ETF market continues to grow at a phenomenal rate, we expect more investors to take advantage of the iShares inflation-linked bond ETF range, particularly because of the ease, cost efficiency, transparency and diversification that these products offer.’

For more information, visit www.ishares.eu