Enhancements
2019 Intermediate TIPS
Refining the Inflation-Sensitive Allocations
State Street consolidated the TIPS allocation to intermediate TIPS in 2019 to reduce interest rate risk. An additional benefit is the higher historical correlation to the Consumer Price Index (CPI), an aggregate measure of consumer goods and services commonly used for identifying periods of inflation or deflation.
| Broad TIPS | Intermediate TIPS | |
| Long-Term Return Forecast | 2.2 | 2.3 |
| Long-Term Risk Forecast | 0.3 | 5.1 |
| Yield to Worst (%) | 1.89 | 1.80 |
| Option-Adjusted Duration (Years) | 8.3 | 5.19 |
| Historical Correlation to CPI | 0.13 | 0.26 |
