PF Inflation Managed Fund Class P (0P0000P0SX)

Overview

The fund is designed for investors seeking a hedge against inflation through investment in debt securities. Its strategy primarily entails a focus on inflation-indexed debt securities, ensuring that investors' capital adjustments are in line with inflation rates. This approach aims to protect the real value of investors' capital and interest income over time. The fund’s advisor ensures that at least 80% of its net assets are invested or exposed to these inflation-indexed securities, which may include direct purchases, forward commitments, or derivatives that emulate the performance of such securities. This disciplined investment focus makes the fund a potentially attractive option for those looking to mitigate the adverse effects of inflation on their investment returns.

Products and Services

• Inflation-Indexed Debt Securities

  This primary investment vehicle of the fund involves securities whose principal value or interest payments adjust based on an inflation index. These adjustments help maintain the purchasing power of the investment, offering a safeguard against the erosive effect of inflation on fixed-income investments. It’s an ideal option for conservative investors looking for stable, albeit lower-risk, returns.

• Direct Cash Market Purchases

  The fund acquires inflation-indexed debt securities directly in the cash markets, allowing it to react quickly to changes in inflation rates and adjust its portfolio composition accordingly. This direct investment approach facilitates more precise control over the selection of securities, aiming to optimize return on investment while closely managing risk.

• Forward Commitments

  Engaging in forward commitments allows the fund to lock in purchases of inflation-indexed debt securities at predetermined prices for future delivery, hedging against possible unfavorable shifts in inflation rates and market conditions. This strategy is deployed to manage the fund’s exposure to inflation risks more effectively and ensure more stable returns.

• Derivative Instruments

  The fund may also use various derivative instruments to gain exposure to inflation-indexed debt securities without requiring direct investment in the securities themselves. Derivatives can offer the fund flexibility in managing its inflation risk exposure and capitalizing on market movements more efficiently. Strategies using derivatives are carefully selected to align with the fund's objectives of inflation protection and risk management.