Edhec-Risk
Portfolio Management
The Handbook of Inflation Hedging Investments

Authors: Editor: Robert Greer
Editions: McGraw Hill
Pages: 320 pages
Date: February 2006
 
 
 
Summary
For average Americans over the past two-plus decades, inflation hasn't been viewed as a serious problem. What most don't realize is that, over that seemingly innocent period, the purchasing power of their money has been cut by almost half.

As a professional money manager or institutional investor, you know inflation is a legitimate concern that must be adequately addressed to protect long-term performance. The Handbook of Inflation Hedging Investments provides you with innovative techniques and strategies for building inflation-protection into virtually any diversified portfolio.

Articles written by executives at leading financial organizations reveal how money managers are actively offsetting the effects of inflation. They introduce you to the features and uses of numerous "real return" assets, including:
  • Inflation-linked bonds—strategies for creating and optimizing portfolios of inflation-linked bonds, with new insights into the expanding corporate inflation-linked bond and inflation derivatives markets
  • Exchange-traded inflation futures—current contract designs and products, including U.S. CPI futures and potential European HICP futures
  • Commodities and commodity indexes—the role of actively managed commodity strategies along with structural sources of potential return
  • Gold—the historic role of gold and trading strategies for vehicles including bullion, gold-related stocks, exchange-traded funds, futures, options, and structured products
  • Real estate—primary ownership structures, with new investment ideas and strategies for allocating among the four sectors of the real estate investment universe
  • Timberland—ways in which timberland can produce exceptional returns, along with practical advice for seamlessly integrating it into an investment portfolio
  • Energy—relationships between investments in different commodities and select financial benchmarks, with pros and cons of various energy-related alternatives
Author and editor Robert Greer, a premier global expert on using commodities to combat inflation in a portfolio, goes even further to explain the need for alternative assets. Greer discusses the importance of inflation hedging, which hedges work best, what percentages should be allocated to real return investments and to each specific investment, and more.

Inflation is not an anomaly; in fact, it is the natural by-product of a healthy economy. The key is to minimize the impact of inflation on long-term investment returns. The Handbook of Inflation Hedging Investments reveals how you can preserve client returns while protecting the purchasing power of those returns.

Hilary Till, Principal of Premia Capital Management LLC, and Research Associate at the EDHEC-Risk Institute, contributed a chapter to the book entitled, "Commodities—Active Strategies for Enhanced Return".
 
 

URL for this document:
http://www.edhec-risk.com/edhec_publications/books/RISKBook.2011-02-18.2301

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