- Inflation in the U.S. is expected to continue to moderate. However, pension funds are still not taking any chances as they increase their exposure to gold, according to the latest report from one global risk management firm.
The survey results come a week after the U.S. Labor Department said its Consumer Price Index rose less than expected in the last 12 months to 5%. While fund managers are optimistic that inflation will continue to trend lower from last-years 40-year highs, analysts at Ortec said that they still aren't taking any chances as they increase their exposure to gold and other commodities.
According to the research, about 70% of fund managers surveyed said they planned to increase their exposure to broad commodities; 40% specifically said they would increase their allocation to gold; in other alternative assets, 52% of managers said they would increase their allocations to infrastructure. Meanwhile, 42% said they increase increased their exposure to inflation-protected bonds.
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