Index linked gilts

[richfool]

Whilst I like the idea of index-linked products, I must admit to being someone who doesn't fully understand all the complexities of how index-linked gilts work. An article I was reading, suggested this as a suitable product through which to gain exposure, - The Royal London Short Duration Global Index Linked Fund Inc:

https://markets.ft.com/data/funds/tears ... x&mhq5j=e2

Would any of the experts here agree with the suggestion?

[scrumpyjack]

Whilst I like the idea of index-linked products, I must admit to being someone who doesn't fully understand all the complexities of how index-linked gilts work. An article I was reading, suggested this as a suitable product through which to gain exposure, - The Royal London Short Duration Global Index Linked Fund Inc:

https://markets.ft.com/data/funds/tears ... x&mhq5j=e2

Would any of the experts here agree with the suggestion?

I used to have sizeable holdings of Index Linked Gilts many many years ago but the main problem with them now is that they are grossly overpriced because pension funds are in effect forced to buy shed loads of them (UK ones at least). The price of UK ILGs therefore reflects that artificial demand and is consequently expected to give a negative real return in future.

Not attractive IMO though that view might change if we had a hard left government and inflation really took off.

[richfool]

SJ, thanks for your thoughts. Sounds like good advice.

I think I will view it that I have missed that boat and just rely on what exposure I may have through the likes of PNL, who (I hope) understand these things better.

[dlp6666]

I personally found this article very informative:

http://monevator.com/why-uk-inflation-l ... inflation/

It does seem that short duration is safest.

[richfool]

dlp, it was that same Monevator article that lead me to the Royal London Short Duration Global Index linked fund, through the FT link.

I also found this one interesting, from the Monevator article, which lead to Ruffer and Capital Gearing trusts.

https://www.ftadviser.com/investment-tr ... n-defence/