Download TIPS Funds Continue Strong DC Asset Growth

FEBRUARY 9, 2012

AUTHORS: Brooks Herman, Ryan Alfred, Eddie Alfred

Treasury Inflation-Protected Securities (TIPS) funds have experienced a notable increase in popularity in Defined Contribution (DC) retirement plans, as plan sponsors and participants have sought out safe havens for their retirement savings in an increasingly volatile economic environment. Currently TIPS funds represent roughly $15 billion of investable assets in the $3.2 trillion BrightScope Beacon DC database, but that number has been growing at a steady 30% rate as plan sponsors, consultants and advisors see more value in the diversification and inflation-resistant potential of TIPS funds.