Roy Diao, managing director and head of client service for business development and marketing non-Japan Asia for BNP Paribas Investment Partners, suggested inflation-linked bonds (ILBs) as a measure to hedge against inflation. The issuance of ILBs by central banks indicated that they were determined to control inflation, as they would have to pay more money based on the inflation rate coupon attached to the bond, if inflation were to escalate. Meanwhile, Dr Hai Xin, head of Overlay Asset Management Asia Pacific, said investors could also use a currency pure alpha strategy to enhance yield of investments. Pure alpha means treating currency as an asset class of its own and allowing fund managers to invest in which ever currency that has the best returns on investment. read more

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