Summary
- The SPIP has a real yield of 1.6%, which is what investors should expect to achieve after inflation over the maturity of the bond fund, which is currently 7.8 years.
- Returns are likely to be significantly higher than this over the coming 12-24 months as real bond yields make their way back below zero, in line with international trends.
- Should we see real bond yields fall back to zero, this would result in gains of almost 10% for the SPIP in addition to the returns linked to CPI.
For further details see:
SPIP: Inflation-Linked Bond Rally Just Getting Started