How to reposition client portfolios as inflation bites

Mike Pinggera, manager of the Sanlam Four Multi-Strategy fund, tells FT Adviser that bonds will now deliver a low but predictable level of income following inflation rises, yet will struggle to keep pace with inflation over the longer term. His preference is to invest in alternative assets – such as infrastructure, renewable energy and specialist property, including distribution centres and student accommodation – which provide a stable income stream with inflation linkage.