To provide investors with a real rate of return above inflation (CPI), through exposure to a diversified portfolio of government inflation-linked bonds. The Ashburton Inflation ETF invests in bonds based on the value issued by National Treasury and the listed value on the JSE.
The Ashburton Inflation ETF aims to track the performance of the Government Inflation-Linked Bonds Index (GILBx). GILBx is a weighted basket of South African government inflation-linked bonds. The ETF tracks the component bonds of the index in proportion to the index weightings. Inflation returns interest to investors quarterly. The initial amount invested in the ETF will increase in line with inflation, while paying real return distributions to investors.