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U.S. Short Duration Inflation Protection Bond

An actively managed, short-duration, multisector portfolio designed to hedge inflation and rising rates.

Strategy Inception

2011

Strategy AUM (USD)

$1.63 B

As of 10/31/2024

  1. Rate and Inflation Hedge

    The strategy’s short duration hedges rising rates, while its emphasis on TIPS – combined with credits, securitized issues and inflation-linked swaps – seeks to hedge inflation.

  2. Proven Manager

    One of the first entrants into the segment, the team has honed its inflation-fighting expertise over more than 25 years.

  3. Active Pursuit of Alpha

    The portfolio pursues alpha through active management that emphasizes sector allocation and research-driven security selection.

Investment Outlook

View our latest Investment Outlook for a concise, easy-to-scan overview of current opportunities and risks created by today's global markets.

Strategy Facts
Inception Date
09/01/2011
Total Assets
$1.63 B USD
As of 10/31/2024
Benchmark
BB US 1-5 Yr TIPS
Target Excess Return
0.25% - 1%
Over a standard market cycle
Target Tracking Error
0.5% - 1.25%
Over a standard market cycle
Investment Universe
Treasury Inflation Protected Securities

Available Vehicles

U.S. and certain other countries

Institutional Strategy

Only in the U.S.

Mutual Fund






Risk Guidelines
Maximum Below Investment Grade
35%
Regional Exposure
±20%
Of index
Issurer Limits
5%
Per issue excluding government securities and government agency mortgages

We believe consistency in risk-adjusted results can be achieved through a diversity of active positions that seek to exploit inherent inefficiencies in the bond market. We rely on the power of fundamental research—augmented by quantitative methodologies—to seek consistent excess returns over a full market cycle. 

We pursue opportunities by following a systematic, repeatable process that’s driven by fundamental research. This research-driven approach is complemented by proprietary quantitative models and tools designed to increase the team’s efficiency.

Continuous Risk Management circles around Outlook, Asset Allocation, and Security Selection.

Outlook

Integrates analysis of economy, markets and policies to establish top-down views on global economic growth, inflation, central bank policies and interest rates

Asset Allocation

Considers economic fundamentals and technical rich/cheap sector analysis to determine relative value

Expected return scenario calculations converted to information ratios and ranked by relative attractiveness

Security Selection

Analysts identify attractive issues through deep fundamental research based on sector-specific analytic frameworks

Portfolio managers, analysts and traders collaborate to manage sector exposures, issuer weights and security selection

Risk Management

Risk Management team independently reviews portfolio holdings’ compliance with risk budgets

Proprietary tools help test and monitor portfolio exposures, apply scenario analysis and evaluate potential trades

  • Managed by a veteran team with more than 30 years’ average experience

  • Offering proven expertise in managing inflation-adjusted portfolios

  • From one of the first participants in the asset class

Portfolio Managers

Robert Gahagan avatar
Robert Gahagan

Senior Vice President

Senior Portfolio Manager

Firm Start

1983

Industry Start

1983

Jim Platz, CFA avatar
Jim Platz, CFA

Vice President

Portfolio Manager

Firm Start

2003

Industry Start

1986

Miguel Castillo avatar
Miguel Castillo

Vice President

Portfolio Manager

Firm Start

2008

Industry Start

2002

SB
Steve Bartolini, CFA

Vice President

Senior Portfolio Manager

Firm Start

2024

Industry Start

1999

Team Facts
Average Industry Experience
30+ Years
Assets Under Management
$1.63 B USD
As of 10/31/2024
Location
New York, NY - Santa Clara, CA

Cross-Discipline Support

Client Portfolio Managers
Dedicated Trader
Global Analytics



Takeaways

Hedges rising rates and inflation

Research-driven multisector approach

Alpha potential of active management

Composite Performance in USD (%)

1 Month
YTD
1 Year
3 Year*
5 Year*
10 Year*
U.S. Short Duration Inflation Protection Bond (gross)as of 10/31/2024
-0.67
4.38
7.31
1.94
3.74
2.72
U.S. Short Duration Inflation Protection Bond (net)as of 10/31/2024
-0.69
4.11
6.98
1.61
3.39
2.32
BB US 1-5 Yr TIPSas of 10/31/2024
-0.66
4.21
6.83
1.64
3.30
2.31

*Annualized

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

Quarterly Review not available at this time

Contact Us

For more information about our global fixed income strategies

Sources: Bloomberg Index Services Ltd, FactSet

This is marketing material. This information is intended to be general in nature and is not personal financial product advice. Any advice contained here is general advice only and has been prepared without considering the investment objectives, financial situation or particular needs of any particular person. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your investment objectives, financial situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. American Century nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it.