Investor focus has turned to instability in Europe, and to the new Bank of Japan Governor Kuroda, who wasted little time in unveiling an aggressive monetary policy. The Bank of Japan plans to more than double its monthly commitment to purchase Japanese government securities, aiming to double that countrys monetary base in order to return inflation in Japan to 2% within two years.
The Barclays U.S. Treasury Index returned -0.19% during the quarter. As designed, the Portfolio performed in line with the Index, with a total return of -0.25%. The Treasury yield curve steepened during the period, as the five-year rate rose 4 basis points (0.04%), 10-year yields rose 9 basis points (0.09%) and 30-year yields rose 15 basis points (0.15%). We will continue to invest with the goal of providing returns that closely approximate those of the Index.
If you are an income-oriented investor who is looking to diversify your investments by gaining broad exposure to the U.S. Treasury market then this Fund may be right for you. It offers a diversified portfolio of Treasury securities approximating the Barclays U.S. Treasury Index.
- Passively managed in an effort to replicate the performance and composition of the Barclays U.S. Treasury Index.
- Invest substantially all (and at least 80%) of its assets in a representative sample of the U.S. Treasury obligations included in the Index.
- Provide investors with a way to gain broad exposure to U.S. Treasury market.