A strategy built to track monthly CPI, not to bet on it.

Most inflation protection asks you to accept commodity-scale volatility to get CPI sensitivity. This strategy was built to remove that trade-off, and has been run against monthly CPI for five years.

Objective: Track monthly US CPI with low volatility and high correlation
Track record: Five years, measured against monthly US CPI
Approach: Direct CPI sensitivity rather than assets that tend to benefit from inflation
Available as: A separate account, through 40 Act subadvisory, or white-labeled

Why low volatility is the whole point

An inflation hedge is only useful if an investment committee will actually hold it through a period when inflation is quiet. Most committees will not hold a sleeve that swings like a commodity index, which is why so many inflation allocations get funded after a CPI spike and quietly cut two years later, precisely the wrong cycle.

Keeping realized volatility deliberately low changes the governance question. The allocation is small enough in risk terms that it does not have to be defended every quarter, and it can be sized meaningfully without dominating the risk budget of the portfolio it sits in.

What it is not

This is not an inflation-beneficiaries equity strategy, and it is not a commodity index in a wrapper. Both of those give you exposure to assets that tend to do well when inflation rises, along with a great deal of exposure to other things. This strategy targets the CPI print itself.

It is also not a TIPS substitute in the duration sense. TIPS carry real-rate duration, which is why a TIPS allocation can lose money in a month when reported inflation is rising.

Common questions

Who is this strategy designed for?

Institutional allocators, insurers, family offices and RIAs who need CPI sensitivity in a portfolio without importing commodity-scale volatility. Institutional mandates typically run from $1 million to $25 million and above.

How does it differ from a TIPS ETF?

A TIPS ETF carries real-rate duration, so it can fall in value during a month when reported inflation is rising. This strategy targets monthly CPI directly, and is built to carry a much lower volatility profile than either TIPS or commodities.

How can it be accessed?

As a separate account, through 40 Act subadvisory, or as a white-label license for an RIA or asset manager.

Is there a track record?

Yes. The strategy has been run for five years, measured against monthly US CPI. We provide the full record and the methodology behind it on request.

Important. Nothing on this page is an offer to buy or sell any security or financial instrument, or a recommendation that any strategy is suitable for any particular investor. Strategies described may not be available to, or appropriate for, all investors, and not all strategies are appropriate at all times. The value of investments can fall as well as rise. Past performance is not necessarily a guide to future performance. Independent advice should be sought in all cases.

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