Tabula US Enhanced Inflation UCITS ETF (USD) - Acc

Issuer: Janus Henderson

Asset Class: Fixed Income

TER: 29bps

Trading Currency: USD

Pays Income: False

Listing Date: 03 Nov 2020

Ticker: TINF

ISIN: IE00BMDWWS85

This actively managed fund is designed to provide returns that exceed the U.S. Treasury Inflation-Protected Securities (TIPS) market. It aims to achieve this by investing primarily in a broad portfolio of U.S. inflation-linked bonds. The strategy offers a way to protect capital from the erosive effects of inflation while seeking to generate real returns, which are returns above the rate of inflation. By actively managing the portfolio, the fund managers can adjust duration, credit quality, and security selection based on their macroeconomic outlook, aiming to navigate different market environments more effectively than a passive index-tracking approach could.

This investment is suitable for individuals seeking to hedge against rising inflation and preserve the purchasing power of their capital. It can serve as a core holding within a diversified fixed-income allocation, particularly for those with a medium to long-term investment horizon who are concerned about the impact of inflation on their bond portfolio. The active management component may appeal to investors who believe that expert analysis can add value by identifying mispriced securities and managing interest rate risk more dynamically than a passive TIPS index. It offers a liquid and transparent vehicle to access the U.S. inflation-linked bond market. While the fund aims to protect against inflation, it is not without risk. The value of the underlying bonds can fluctuate due to changes in interest rates; if rates rise, bond prices generally fall. As an actively managed fund, its performance is also dependent on the skill of the portfolio managers, and there is no guarantee it will outperform its target market.