Vanguard to Launch Short-Term Inflation-Protected Securities Index Fund

Vanguard is expected to offer the Vanguard Short-Term Inflation-Protected Securities Index Fund in the fourth quarter.

The fund will seek to track the performance of the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, a market-weighted index that measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of less than five years. The benchmark index has an effective duration of 2.53 years and an average maturity of 2.59 years (as of June 30).

The fund will offer four low-cost share classes: Investor Shares, Admiral Shares, Institutional Shares and ETF (exchange-traded fund) Shares.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

“The new Short-Term Inflation Protected Securities Index Fund will provide an additional choice for investors who are seeking protection from inflation,” said Vanguard Chief Investment Officer Gus Sauter. “The fund’s objective will be to generate returns more closely correlated with realized inflation and to offer investors the potential for less volatility of returns relative to a longer-duration TIPS fund.”

The fund’s ETF Shares have an estimated expense ratio of 0.10%. The fund’s Investor Shares, which require a $3,000 minimum initial investment, have an estimated expense ratio of 0.20%; the Admiral Shares, which require a $10,000 minimum initial investment, have an estimated expense ratio of 0.10%; and the Institutional Shares, which require a $5 million minimum initial investment, have an estimated expense ratio of 0.07%. To offset the transaction costs of purchasing TIPS, the fund will assess a 0.25% purchase fee on all shares (excluding ETF shares).

 

Mercer Selects Millennium Trust for IRA Rollover Solution

 

Mercer's Outsourcing business selected Millennium Trust Co. as the exclusive provider for its clients' automatic IRA distribution needs.

 

 

Through this strategic relationship, Mercer and Millennium will present and execute a comprehensive, streamlined mandatory rollover solution that enables Mercer’s clients to mitigate the administrative burden, cost and liability associated with terminated plan participants with small balances.

“This mandatory rollover program will be integral to our clients as they continue to look to Mercer to provide solutions that help manage the costs and risks associated with their retirement plans,” said Matt Benjamin, Mercer’s defined contribution product manager.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

In conjunction with Millennium, Mercer will deliver a fully integrated solution by facilitating various administrative, regulatory and communication tasks required for the forced rollover of low balance accounts. The solution will help Mercer’s clients comply with tax rules and the Department of Labor’s (DOL) fiduciary safe harbor.

 

«