BNP Offers U.S. TIPS to DC, DB Plans

BNP Paribas Investment Partners Trust Company added a share class to offer employer-sponsored retirement plans access to its U.S. Treasury Inflation Protected Securities (TIPS) comingled investment fund.

BNP affiliate Fischer Francis Trees & Watts (FFTW) manages the new share class, as well as the wider FFTW U.S. TIPS Fund. The share class is offered to both qualified defined contribution (DC) and defined benefit (DB) plans.

BNP managers said their firm developed the share class to meet demand as more employer-sponsored retirement plans offer stand-alone U.S. TIPS options for participants.

Patrick O’Hara, director of defined contribution business development for BNP, said the fund takes on a pure-play strategy that relies primarily on inflation-linked bonds and nominal sovereign bonds in seeking to generate incremental returns over the Barclays Capital U.S. TIPS Index.