Index-linked gilts remain the purest form of inflation hedge available to sterling-based investors. Yet the market is as expensive as many market participants can remember because demand continues to far exceed supply.
Many institutional investors look at this relative expense and assume a passive approach is the only sensible route. The argument is so pervasive that there's a widely held misconception that active investing in index-linked gilts is tantamount to a zero-sum game.
This argument po