According to a news release, the fund was developed for investors looking for solutions beyond single asset class strategies, like TIPS, that may be limited in their ability to combat all forms of inflation. The fund will be co-managed by Kevin Kearns, fixed income portfolio manager and senior derivatives strategist; David Rolley, global fixed income portfolio manager, global investment strategist and head of the yield curve sector team; and Laura Sarlo, fixed income portfolio manager and senior sovereign analyst.
The flexible and tactical nature of this strategy is aimed at preserving and growing the purchasing power of investor portfolios under a variety of economic conditions, while also seeking to limit volatility, the company said. The fund may be well suited for investors concerned with building long-term purchasing power as well as those uneasy about the overall diversification level of their investment portfolios.
Using a flexible mandate that allows tactical investments in a wide range of asset classes and security types, the fund’s performance goal is to beat the U.S. consumer price index (CPI) over a full market cycle. Using a combination of top-down macroeconomic analysis and fundamental research, the portfolio management team seeks to identify the nature of global inflationary or deflationary trends and then applies sector and security specific allocations in an effort to optimize the fund’s risk/reward potential.
The fund may invest in a broad range of securities globally including fixed income instruments (TIPS, government, sovereign, and corporate), equities, ETFs, REITs, and commodity instruments, according to the announcement.