BOSTON, MA, December 22, 2023 — Scott Supple, CAIA, Principal and Portfolio Manager at Longfellow Investment Management, was interviewed by Rob Kozlowski of Pensions & Investments.
In a recent publication by P&I titled, Stabilizing interest rates present right conditions for TIPS Supple said, “From a total return perspective, TIPS did have a challenging year last year. Looking at TIPS performance relative to duration-matched nominals, they did hold up OK and do a little bit of what they were supposed to.” He cautioned against viewing TIPS solely as a high inflation performer and said they can do a good job of preserving purchasing power, although they are subject to real rates.
The article then focused on the idea that TIPS have a branding problem, and concluded with a look at how an elevated CPI can be beneficial for TIPS. Supple said, “TIPS tend to be a good reflection of what people expect for inflation as opposed to what inflation might actually be in the moment.”
The full article is available online here.
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Fixed Income investments involve risks such as interest rate risk, credit risk and market risk, including the possible loss of principal. Interest rate risk is the risk that interest rates will rise, causing bond prices to fall. Past performance does not guarantee future results and the opinions presented cannot be viewed as an indicator of future performance.