Saturday, February 24, 2018

Pimco Fund Hedges Inflation With Commodities and TIPS

January 11, 2010 by  
Filed under Inflation Hedge Strategies

Mihir P. Worah, Manager of the Pimco Commodity Real Return Strategy fund PCRDX; explained that:

“Commodities protect you from a different kind inflation than TIPS do.Commodities reflect prices at the wholesale level — things like crude oil, copper and wheat.” TIPS, he noted, are indexed to the Consumer Price Index “and reflect prices of things like bread, cars and airline tickets.”