Enhancements
2020 Intermediate Gov't Bonds
Introducing Intermediate Government Bonds Improves Expected Efficiency in Longer-Dated Funds
State Street decided to partially replace long government bonds with intermediate government bonds in 2020 to reduce interest rate risk while still offering downside protection in weak equity markets.
| LT Return Forecast (%) |
LT Risk Forecast (%) |
Fixed Income Duration (Years) |
|
| US Long Gov't Bonds | -1.5 | 11.9 | -19.25 |
| US Int Gov't Bonds | 0.4 | 3.5 | 3.86 |
| 2060 Fund (Current) | 5.41 | 13.38 | 19.25 |
| 2060 Fund (April 2021) | 5.57 | 13.36 | 6.94 |
| Difference | 16 bps | (2 bps) | (12.32) |
