U.S. TIPS

The product seeks to enhance and preserve the real value of assets through the generation of income and capital appreciation by investing in a diversified portfolio of fixed income securities.  This product has an 8 year duration with respect to real interest rates, and thus offers excellent hedging characteristics versus other asset classes.

The product primarily invests in inflation-linked bonds while tactically employing additional risk factors to maximize risk-adjusted returns. Strategies employed include:

       Duration management
       Term structure management
       Breakeven inflation management
       Sector selection

The benchmark for this product is the Barclays US TIPS Index.

US TIPS 1-5

The product seeks to enhance and preserve the real value of assets, while limiting exposure to real interest rate volatility.  Ideal for clients seeking inflation protection on shorter term assets, this product has an average duration of 3.0 years versus 8.1 years for the entire US TIPS market.  Historically, such a portfolio has offered superior reward/risk characteristics.

The product primarily invests in inflation-linked bonds while tactically employing additional risk factors to maximize risk-adjusted returns. Strategies employed to add value include:

       Duration management
       Term structure management
       Breakeven inflation management
       Sector selection

The benchmark for the product is the Barclays US TIPS 1-5 Index.