Asian institutional investors are looking to hedge against anticipated interest rate rises in the coming year, according to David Lofthouse, CEO of $1 billion London-based fixed income specialist Prologue Capital.
The firm’s Prologue Fund, which includes a suite of inflation-linked products, has attracted Asian investors seeking an inflation hedge, said Lofthouse. “It’s an insurance policy of sorts. It’s extremely important to have hedged trade products or funds that offer non-correlated market returns, should inflation start to rise.”
Prologue, which operates in London and Connecticut, does not have an Asia office, although it is looking at establishing a distribution agreement