Fixed Income
US Intermediate Gov’t Bond Index
Introducing Intermediate Government Bonds Improve Expected Efficiency in Longer-Dated Funds
When it comes to fixed income, State Street has partially replaced long government bonds with intermediate government bonds to reduce interest rate risk while still offering downside protection in weak equity markets.
| LT Return Forecast (%) |
LT Risk Forecast (%) |
Fixed Income Duration (Years) |
|
| US Long Gov't Bonds | -1.5 | 11.9 | 19.25 |
| US Int Gov't Bonds | 0.4 | 3.5 | 3.86 |
| 2060 Fund (Current) | 5.41 | 13.38 | 19.25 |
| 2060 Fund (April 2021) | 5.57 | 13.36 | 6.94 |
| Difference | 16 bps | (2 bps) | (12.32) |
