The sustainable investor for a changing world

Inflation-linked bond strategy

Key features

A global portfolio of investment-grade inflation-linked and nominal government securities 

Enhanced protection against inflation shocks

An experienced, specialist management team dedicated to government bond strategies

Investment philosophy 

We believe inflation-linked bond markets exhibit inefficiencies that can be repeatedly exploited by specialist portfolio managers. 

Our systematic investment process focuses on careful analysis of the fundamental drivers of asset prices – notably macroeconomic developments, market microstructure considerations and relative value relationships. This allows us to identify investment opportunities to build a diversified set of exposures that will generate consistent excess returns with limited overall volatility.

Investment process

Our Inflation-Linked Bond strategy follows a four-step process: 

  • Research framework: combine quantitative and qualitative insights from several teams and forums
  • Idea generation: evaluate top-down fundamental developments and bottom-up market microstructure considerations 
  • Strategy selection: ideas are crystallised into implementable strategies such as duration, yield curve and breakeven inflation trades
  • Portfolio construction

Team and resources

Our Global Sovereigns, Inflation and Rates team is based in Paris and New York. Cedric Scholtes, who has more than 19 years of industry experience, leads the team.

Team members have years of expertise in sovereign and inflation-linked bond portfolio management, as well as extensive market experience, including market making and tenures at the Federal Reserve and the Bank of England.

The team benefits from access to sophisticated proprietary tools including a robust inflation-forecasting model, as well as our global trading and risk management platform, Sustainability Centre, Quantitative Research Group and Macro Research team. 

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.

In the U.S., this material is for Institutional use only – not for public distribution. This material is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Reliance upon information in this material is at the sole risk and discretion of the reader. The material was prepared without regard to specific objectives, financial situation or needs of any investor.

These documents and video clips may also include information obtained from affiliated investment management companies within BNP Paribas Asset Management, the brand name of the BNP Paribas group’s asset management services. The documents and video clips are produced for informational purposes only and do not constitute: 1. an offer to buy nor a solicitation to sell, nor shall they form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. Any opinions included in these documents and video clips constitute the judgment of the author/ presenter at the time specified and may be subject to change without notice.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, and estimates of yields or returns. No representation is made that any performance presented will be achieved by any funds, or that every assumption made in achieving, calculating or presenting either the forward-looking information or any historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BNP PARIBAS ASSET MANAGEMENT USA, Inc. to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.

The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation. Investment involves risk including possible loss of principal. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are often heightened for investments in emerging/developing markets or smaller capital markets.


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