Does Inflation matter?
Railene Waters, Head of Business Development
In low inflationary environments clients often think the impact of inflation is negligible and can be ignored, but is that true? In the chart below, we show the decline in purchasing power over various time periods when CPI is at 2%, 4% and 6%.
Source: City Asset
City Asset Management is a multi-award-winning specialist discretionary investment manager focusing on real returns. With outcomes-based mandates of CPI + x% depending on the client’s attitude to risk. Our real return mandates let you and your clients know what we are aiming to achieve.
Multi-asset investments We invest across a broad range of assets through different fund managers with a strong expertise in Alternative Investments, Structured Products and Investment Trusts. Seeking returns from investments that behave differently than typical stocks and bonds provides diversification. With a multi asset portfolio, we seek to manage risk while seeking to outperform inflation.
Investment Solutions to meet different needs Our Solutions are designed to produce a variety of outcomes for clients as can be seen on the chart below. The risk levels increase from DT4 – DT6 for the Real range.
Real Income A solution which is specifically designed for managing a CPI linked income of up to 4%p.a. A personal benchmark is created so performance can be tracked at reviews and used in conjunction with Advisers cash flow model plans. Realincome considers sequencing risk, pound cost ravaging and a client’s need for income flexibility and is strategically managed to maintain a sustainable return through time. Real 2/3/4/5 mandates are available on both an MPS and Discretionary basis, visit us at www.city-asset.co.uk for further information.
The value of your investments can fall and you may not get back the amount invested. Past performance is not a guide to future performance. Please see the relevant section of our website for more detailed information and risk warnings. You should not invest in or deal in any financial product unless you understand its nature and we recommend you seek advice Compliance Code: DH2359