Inflation: considerations for real assets
Summary
Inflation concerns have been front and centre in conversation for global investors and consumers alike in recent months. Since the beginning of the pandemic, supply-side constraints in the face of strong demand have created disequilibrium, driving
inflation higher, and now the conflict in Eastern Europe will likely exacerbate that risk by boosting commodity prices further.
Advanced Econonmy Inflation

Source: IFM Investors. BLS, Federal Reserve Bank of Dallas
Such a spike in inflation in advanced economies has not been experienced for decades and there is uncertainty as to how and when it will be resolved. Asset owners like IFM Investors, now face the added challenge of navigating this maze of regional
and global inflationary pressures and interpreting the implications for real asset investments.
In this environment, asset owners need to manage debt facilities carefully. Traditional floating rate exposures have worked for debt facilities over the last few decades. We believe it is prudent to seek advice on both the structure of debt facilities,
any hedging required and the level of interest rates (fixed and floating) in order to address interest rate exposures.
About the author
Investment Director
Darren Pasco
Joined in 2003
Darren is responsible for managing IFM Investors’ cash portfolios and short term interest rate risk. His responsibilities also include FX portfolio management for internal and external portfolios, and he also drives economic research and analysis within the broader team. Previously Darren was assistant manager in Members Equity’s treasury area, managing the money market asset and liability books, trading interest rate swaps, futures and FX. Darren has also worked with Swiss Re Asset Management in fixed income and as a fund accountant with National Custodian Services. Darren has completed a Masters Degree in Applied Finance.
About the author
Chief Economist
Alex Joiner, PhD
Joined in 2016
Bachelor of Economics (Hons) (Latrobe University), PhD (Econometrics) (Monash University).
Alex is IFM Investors’ Chief Economist and has more than a decade of experience in the field. He is responsible for the firm’s economic, financial market and policy analysis and forecasting. Alex is also a member of the firm’s Investment Committee. Prior to joining IFM Investors, Alex was the Australian Chief Economist for Bank of America Merrill Lynch. In this role, Alex was responsible for providing economic insight and forecasts across asset classes and conveying these views to both domestic and global investors. Alex was also previously a Senior Economist at the ANZ Bank.
About the author
Associate
Ryan Weldon
Joined in 2019
Ryan supports the dealing and portfolio management functions of IFM Investors’ cash and fixed income portfolios in the US. He also assists in the execution of foreign exchange and derivative overlay strategies for internal and external clients.
Prior to Joining IFM Ryan was a US Government Bond trader at HSBC where he managed a $3bn inventory book comprised of cash and derivative products. Ryan’s years of trading in New York provide a strong network and insight in the US market.
Ryan is a CFA and CAIA charter holder.