January insight - Managing Inflation?

It may be too early to tell how the Omicron variant of COVID-19 will affect the Bank of England’s decision to raise interest rates.  Despite their initial concern, the Bank decided to increase rates in December and, with market expectations appearing to reflect a belief that the current inflationary environment is not transitory, further increases may be on the way.     

So when it comes to preparing your portfolio for inflation, what should you do?

Of the myriad of factors to consider, we list a few important steps below.  As they relate to selecting a manager – from structuring the ideal asset allocation and evaluating market conditions (Step 1), to ranking the best managers (Step 2) and analysing how they might perform within a portfolio (Step 3) – each step is connected and critical to achieving the best results.