Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

Chatfeild-Roberts: beware inflation 'illusion'

by Emma Dunkley on Jan 07, 2013 at 13:57

Chatfeild-Roberts: beware inflation 'illusion'

Jupiter’s John Chatfeild-Roberts believes inflation is higher than the level being recorded and investors should be wary of the threat it poses in the longer term.

The firm’s chief investment officer is the latest in a string of high profile investors to warn on the dangers of inflation, following the likes of Pimco's Bill Gross, who last week told his clients to invest only in short duration bonds because 'inflationary dragons' would soon breathe fire.

Jupiter's Chatfeild-Roberts (pictured) said although inflation can be positive for governments because it reduces the real value of public debt, it ultimately eats away at living standards for those whose income is not inflation protected.

Citing the Keynesian phrase ‘euthanasia of the rentier’, Chatfeild-Roberts warned savers should ‘be under no illusions’ as the long-term effect of inflation on their finances.

‘In my view, the consumer price index under-records the actual inflation experienced by many groups of people, particularly those in retirement,’ he explained.

‘Having exposure to investments that offer some protection against higher prices looks like a sensible precaution.’

He explained large multi-national businesses with strong balance sheets are not as cheap as they were but are still resilient amid the low level of global growth.

Their ability to grow dividends through the economic cycle also makes them an attractive option for those seeking long-term income and inflation protection, he added.

Europe still a key issue

Elsewhere, Chatfeild-Roberts said the bond and equity market rally since the European Central Bank (ECB)’s actions to protect the eurozone from collapse could be sustained, assuming the ECB continues to support weaker economies and the US recovery continues.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets

From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the fund managers

  • John Chatfeild-Roberts
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • William H Gross
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet