iShares Government Inflation ETF

The iShares Government Inflation ETF is an exchange-traded fund that provides investors with targeted exposure to Australian inflation-linked government bonds. Managed by BlackRock Investment Management (Australia) Limited, the fund's core objective is to track the performance of the Bloomberg AusBond Government Inflation Index, which comprises Australian dollar-denominated, fixed-rate inflation bonds issued by the Commonwealth and semi-government entities. These bonds are designed to help preserve purchasing power by adjusting principal and interest payments to reflect changes in the Consumer Price Index (CPI), making the ETF especially relevant during periods of rising inflation. Only investment-grade securities (AAA to BBB rated) are included, and maturities can extend up to 50 years, providing a broad representation of Australia’s government inflation-linked bond market. The fund's approach is entirely passive, employing representative sampling to mirror index performance before fees and expenses. With the majority of its assets invested in fixed interest securities, the ETF serves as a portfolio diversifier, supporting investors seeking a hedge against inflation through regular distributions paid from accrued income. Since its inception in 2012, the iShares Government Inflation ETF has played a significant role in Australia's fixed income landscape, facilitating efficient access to inflation protection for a range of market participants.