The Global Inflation-Linked Bond Fund will provide an investment alternative for investors, says the company, who are worried about inflation. It will be managed by Thomas Wells, who is part of the fixed income team that manages the firms short-dated corporate bond fund, worth £484m.

Smith & Williamson’s new investment will provide global exposure to government-issued inflation linked debt. 

The firm’s team will look to add value through country selection and will take positions of plus or minus 10% depending on the country's benchmark. Smith & Williamson’s fixed income team will also manage investment duration within countries as well.

The bond will be a Ucits based in Dublin and will focus on high quality global debt with an average credit rating of AA. 

To mark the launch, the investment management firm says it is offering all investors access to an institutional share class, with an annual management fee of 0.25%. The offer will last for 12 months and will allow individuals to benefit from active management.

Thomas Wells said: “We have a good track record of producing transparent and dependable investment solutions in fixed income, and have now extended this to the global inflation-linked arena. To us, a global inflation-linked fund makes a lot of sense.”

Ed Rosengarten, head of funds at Smith & Williamson, said: “These are exciting times for the funds business at Smith & Williamson and we are delighted to look to continue our track record of providing investment-led solutions to real-world problems.

“Investors are increasingly concerned about inflation and we have listened to them. Gilts, including linkers, have had a stellar 2016 and there is clearly demand out there for better value and lower-risk inflation hedges. In our opinion, the Global Inflation-Linked Bond Fund is a transparent and lower-risk solution to the potentially corrosive effects of inflation and offers good value for money.”