Inflation expectations have not materially changed versus the previous quarter, hence the higher yields are driven by higher real yields as opposed to higher inflation.
Inflation has continued to decrease in Q3 albeit still significantly higher than the Bank of England’s 2% target for CPI.
AlphaReal, the specialist real assets investment manager, has recently completed the construction of a 13.5MW onshore wind asset near Rigmuir, Scotland.
AlphaReal, the specialist secure income manager, has structured and invested in a portfolio of 28 childcare facilities located across the UK on behalf of the retirement specialist, Just Group plc.
This update summarises the latest news, thought leadership and insights from AlphaReal.
We saw an upward move in both nominal and real gilt yields over the quarter. The nominal curve increased by an average of 26 basis points (bps), while the real curve increased by 31 bps.