Help protect long-term purchasing power
Inflation often appears quickly and unexpectedly, making it important for long-term investors to be prepared in all market environments. The fund aims to help investors protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns primarily from Treasury Inflation-Protected Securities (TIPS).
Why Invest In This Fund
A high quality inflation hedge
Active management has helped the fund deliver short- and long-term returns solidly ahead of inflation, while the portfolio’s investment-grade orientation has provided a smoother ride than other real return assets such as commodities and real estate.
Potential diversification benefits
While traditional asset classes such as stocks and bonds usually move inversely to inflation, TIPS tend to move in the same direction as inflation. Investing in assets with low correlations to one another, i.e., assets influenced by different factors, may help enhance a portfolio’s diversification, potentially lowering overall volatility. TIPS can decline in value if interest rates rise, and may be particularly sensitive if real interest rates r