Investment Approach

• Seeks to deliver a high degree of inflation protection and income across the full inflation cycle
  • Invests a majority of assets in U.S. Treasury inflation protected securities (TIPS) in an effort to protect against inflation
  • Can allocate strategically in high-quality, out-of-benchmark sectors to look for additional yield when inflation is low and stable or falling
  • Out-of-benchmark allocations are focused on investment-grade market segments that have historically exhibited material correlation to unexpected inflation and attractive risk-adjusted return profiles
• Disciplined and consistently applied investment process
  • Uses quantitative methods to more effectively replicate key benchmark risk characteristics in a yield-advantageous manner
  • Leverages global research platform to identify macroeconomic themes, market inefficiencies, and security opportunities
  • Strategic and tactical sector allocation decisions based on input from sector specialists and economists
  • In-depth quantitative analysis facilitates robust portfolio construction with effective risk management
• Aims to add alpha primarily through interest rate management and secondarily through sector allocation and security selection