CIO Insights: Second Quarter 2017
G. David MacEwen
Co-Chief Investment Officer
Global & Non-U.S. Equity
U.S. Value Equity
U.S. Growth Equity:
The opinions expressed are those of American Century Investments (or the fund manager) and are no guarantee of the future performance of any American Century Investments' fund. This information is for educational purposes only and is not intended as investment advice.
1Treasury inflation-protected securities (TIPS)
TIPS are a special type of U.S. Treasury security designed to address a fundamental, long-standing fixed-income market issue: that the fixed interest payments and principal values at maturity of most fixed-income securities don’t adjust for inflation. TIPS interest payments and principal values do. The adjustments include upward or downward changes to both principal and coupon interest based on inflation. TIPS are inflation-indexed; that is, tied to the U.S. government’s Consumer Price Index (CPI). At maturity, TIPS are guaranteed by the U.S. government to return at least their initial $1,000 principal value, or that principal value adjusted for inflation, whichever amount is greater. In addition, as their principal values are adjusted for inflation, their interest payments also adjust.
Diversification does not assure a profit nor does it protect against loss of principal.
For detailed descriptions of indices or investing terms referenced above, refer to our glossary.