Treasury inflation-protected securities (TIPS) have a history of cycling in and out of investors’ minds as a du jour investment idea. At their core, TIPS can provide a hedge against inflation for a broader fixed income portfolio, but they also have many distinct, often misunderstood, features. In this whitepaper, Loomis Sayles PM Elaine Kan, PM Kevin Kearns, and Investment Director Roger Ackerman examine TIPS and seek to debunk several misconceptions.

Why consider the Loomis Sayles Inflation Protected Securities Fund (LSGSX)?

  • Broad flexibility and active management may allow the fund to capitalize on higher inflation and breakeven rates.
  • Unlike more traditional TIPS funds, Loomis Sayles PMs can express their views on inflation expectations without assuming additional duration risk.
  • Active duration management may help mitigate interest rate risk.
  • The Loomis Sayles PM team can enhance its core TIPS portfolio through diversified credit exposure.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. Please visit or call 800-633-3330 for a prospectus and a summary prospectus, if available, containing this and other information. Read it carefully.

Natixis Distribution, L.P. (fund distributor, member FINRA|SIPC) and Loomis, Sayles & Company, L.P. are affiliated. Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall) inflation and liquidity. Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities. Inflation protected securities move with the rate of inflation and carry the risk that in deflationary conditions (when inflation is negative) the value of the bond may decrease. Derivatives involve risk of loss and may entail additional risks. Because derivatives depend on the performance of an underlying asset, they can be highly volatile and are subject to market and credit risks. Foreign securities may involve heightened risk due to currency fluctuations. Additionally, they may be subject to greater political, economic, environmental, credit and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund's investments to decline. Commodity-related investments, including derivatives, may be affected by a number of factors including commodity prices, world events, import controls and economic conditions, and therefore may involve substantial risk of loss.