| 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.
 |
Copyright ©2008 Brown Brothers Harriman & Co.
| 
