Joshua Barrickman and Gemma Wright-Casparius, both principals and senior portfolio managers with Vanguard Group, will co-manage a new Treasury inflation-protected securities index strategy to be launched during the final quarter of 2012, Vanguard announced Tuesday.
Mr. Barrickman, a 14-year Vanguard veteran, oversees management of Vanguard's fixed-income ETFs and also manages Vanguard's $15.7 billion Intermediate-Term Bond Index, $3.5 billion Short-Term Corporate Bond and $890 million Long-Term Corporate Bond funds.
Ms. Wright-Casparius, who joined Vanguard in 2011, co-manages the firm's $43 billion actively managed TIPS fund.
In a news release, Vanguard said its new TIPS strategy, available in mutual fund and ETF vehicles, will track the Barclays U.S. Treasury Inflation-Protected Securities 0-5 Year index.
As of June 30, that benchmark index had “an effective duration of 2.53 years and an average maturity of 2.59 years,” according to the news release. In the release, CIO Gus Sauter noted the new strategy will generate less volatile returns, in line with “realized inflation,” than Vanguard's existing TIPS strategy, which has duration of roughly 8.5 years.