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U.K. institutional investors are taking steps combat rising inflation
Research - JUNE 17, 2022

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U.K. institutional investors are taking steps combat rising inflation

by Kali Persall

As inflation pressures continue to rise, investors are taking steps to brace for its impact, with many choosing to invest in assets that can hedge the risk.

Downing commissioned a survey of 100 U.K. pension funds, institutional investors and wealth managers,  who collectively manage £118 billion ($144 billion) in assets, finding that 47 percent are very concerned about inflation. As a result, 52 percent of investors have increased allocations to renewable energy and 46 percent have allocated more to stocks that can benefit from rising inflation. These include businesses that require little capital, such as communications services companies or commodities and real estate.

The current rate of inflation is 9 percent — its highest for 40 years — and the Bank of England has warned that it could surpass 11 percent later this year.

The survey found that industry professionals are keyed into this trend. Some 32 percent of respondents expect inflation to increase d

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