No. of Recommendations: 0
There’s an article at Yahoo Finance about “The Mutual Fund for Those Afraid of Inflation”. It’s a load fund (4.50%) with a typical expenses ratio. (0.85%). Those are big hurdles to overcome compared with the more modest expenses of buying one’s investment directly. So I was skeptical, especially when the interview asked the manager the following question:

Q.What are the benefits for accessing this asset class through an actively managed mutual fund?

A. Mutual funds that invest in TIPS are one way to access the asset class. We believe that an actively managed fund allows us to manage interest-rate risk. In addition, we seek to generate additional performance by investing in other asset classes, such as nominal Treasuries, while still maintaining a high allocation to TIP.

Plotting a price chart for HIPAX against some benchmarks suggests that the guy is doing what he says he intends to do. Further digging would be needed, but I’m impressed.
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