| Treasury Inflation-Indexed Security (TIPS)
Portfolio
Product Description
An actively managed portfolio consisting primarily of U.S. Treasury inflation-indexed securities. The portfolio may also include allocations to agency and corporate inflation-indexed securities, non-U.S. inflation-indexed securities, and nominal bonds. Duration is typically maintained within +/- 1 year of benchmark duration.
Asset Class Description
A distinct asset class designed to protect investors'
purchasing power against inflation. Real (or inflation-adjusted)
return is known in advance. Bond principal rises with inflation,
and coupon payments are based on the original coupon rate of the
bond applied to the inflation-adjusted principal value.
Objective
Seeks to outperform the Citigroup Inflation-Linked Security Index by approximately 50 basis points over full market cycles, with a tracking error of approximately 50-75 basis points.
| Target Return: |
Exceed the benchmark by 50 basis points, measured
over a 3 year period |
Projected Tracking
Error: |
50–75 basis points |
Benchmark: |
Citigroup Inflation-Linked Security Index |
Average Credit Qualtiy: |
AAA |
Duration: |
8.15 years |
Risk Management
Portfolio risk is systematically measured and budgeted
across all portfolio decisions (credit, yield curve, duration, liquidity,
etc.) based on our forecast confidence, return and risk expectations,
and experience. No single decision dominates the contribution to
risk or return.
Factsheet
|
Contact
us for more information |
This requires the use of Adobe Acrobat Reader.
This publication is provided by Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) to recipients, who are classified as Professional Clients and Eligible Counterparties if in the European Economic Area (“EEA”), solely for informational purposes. This does not constitute legal, tax or investment advice and is not intended as an offer to sell or a solicitation to buy securities or investment products. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code or for promotion, marketing or recommendation to third parties. This information has been obtained from sources believed to be reliable that are available upon request. The views expressed are those of BBH and any opinions expressed are subject to change without notice. Unauthorized use or distribution without the prior written permission of BBH is prohibited. This publication is approved for distribution in member states of the EEA by Brown Brothers Harriman Ltd. and/or Brown Brothers Harriman Investor Services Limited, both authorized and regulated by the Financial Services Authority. BBH is a service mark of Brown Brothers Harriman & Co., registered in the United States and other countries. © Brown Brothers Harriman & Co. 2011. All rights reserved. |
Copyright ©2008 Brown Brothers Harriman & Co.
|
