Treasury Inflation Protected Securities (TIPS) 

Flying Shadows
Julie Onderdonk 
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About TIPS

The strategy, managed by a team with deep experience investing together through multiple market cycles, utilizes maturity distribution and a trading strategy to capture inefficiencies and opportunities in U.S. inflation protected securities.

Investment Process

Investment Objective:

Seeks to outperform the Bloomberg Barclays US TIPS Index over a full market cycle.

Investment Overview:

We believe an inflation-hedged portfolio should be actively managed to exploit market inefficiencies. Our three step approach includes a comparison of current breakeven rates to long-term average inflation rates, an assessment of the new-issue calendar which impacts the maturity distribution, and a quantitative review that calculates the yield of every issue relative to a fitted yield curve for the TIPS market allowing us to take advantage of inefficiencies.

Strategy Summary

as of 6/30/2021
Asset Class
US Fixed Income
Investment Style
Bottom-Up Security Selection
Portfolio Benchmark
Bloomberg Barclays U.S. TIPS Index
Separate Account
Open

Additional Information

Media Spotlight

Mark Giambrone Discusses Midterm Elections and Markets on Fox Business
November 7, 2018
View on FoxBusiness.com
Mark Giambrone Discusses Market Trends on CNBC
November 6, 2018
View on CNBC.com>

Portfolio Characteristics

as of 6/30/2021
Portfolio
Bloomberg Barclays U.S. TIPS Index
Average Credit Quality
AAA
AAA
Average Weighted Coupon
1.3
0.7
Average Maturity
7.8
8.0
Effective Duration (yrs)
5.7
6.0
Yield to Worst
0.7
0.6
Current Yield
1.1
0.6

Performance

Annualized Portfolio Returns as of 6/30/2021
Qtr*
1 Year
3 Year
5 Year
10 Year
TIPS - Gross Returns
2.81%
6.19%
6.25%
4.03%
3.38%
TIPS - Net Returns
2.75%
5.95%
5.99%
3.77%
3.13%
Bloomberg Barclays US TIPS Index
3.25%
6.51%
6.53%
4.17%
3.40%

* Most recent quarter returns are not annualized. Past performance does not guarantee future results and there is no assurance that the Strategy will achieve its investment objective.

Disclosure

Sources for data noted above are from APX, BondEdge and Bloomberg Index Services Limited as of the date specified.

Barrow Hanley gross returns are shown before investment management fees and custody expenses. Index returns do not reflect transaction costs, management fees, and other expenses. Performance is expressed in U.S. currency. Net returns are calculated using a model fee. The model fee is based on the highest tier of our standard fee schedule. Barrow, Hanley, Mewhinney & Strauss, LLC claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, "Barclays"), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

All institutional product information has been provided by Barrow, Hanley, Mewhinney & Strauss, LLC. Any questions about this material or requests for additional information may be made directly to the firm by contacting us here.

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