17 May 2010
The Benefits of Bonds
On the challenging terrains such as today's market, bond funds can help smooth your ride. In addition to providing regular income, fixed income investments play a key role in helping to reduce the impact of stock market volatility on an overall portfolio.
As illustrated below, a portfolio that includes both stocks and bonds may be better equipped to weather a market downturn and, thus, may experience steadier returns relative to a portfolio with 100% stocks1.
Performance of Major Indices2
January 1990 - December 2009
|
Average Annualised Total Return
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Calendar Year
Returns
(1990-2009)
|
100% Global Stocks
(MSCI AC World Index) |
6.8% |
38.5% |
-41.8% |
100% Global Bonds
(JP Morgan Global Government Bond Index) |
5.9% |
22.1% |
-8.2% |
Blending 60% Global Stocks | 40% Global Bonds
(rebalanced every 12 months) |
6.4% |
32.0% |
-20.2% |
A Comprehensive Range of Fixed Income Funds
Franklin Templeton is a pioneer in fixed income investing. As the fixed income market evolves, we've also expanded our fixed income fund offerings to help investors take advantage of marketplace innovations. Today, we offer a wide variety of fixed income funds covering a broad spectrum of credit quality and interest rate sensitivity to help you meet your investment needs.
Click on the links for more information.
Important Information
The information provided in this audio/video is not a complete analysis of every material fact regarding any country, industry, security or fund. The opinions express in the audio/video are subject to change without notice. Information about any fund, the analysis of any issuer and the economic environment may have changed. Any opinion expressed is intended to provide insight as to how securities are analysed and not intended as individual investment advice.
This audio/video, issued by Franklin Templeton Investments, should not be reproduced without the express consent of the Templeton Asset Management Ltd. It does not constitute or form part of any offer to invest nor is it an invitation to invest. Subscriptions may only be made on the basis of the most recent Prospectus which is available at Templeton Asset Management Ltd or its authorised distributors. Investors should read the Prospectus for details before investing. Past performance is not necessarily a guide to future performance and the value of the shares and the income from them may fall as well as rise. This investment product is not available to U.S. and Canadian residents. Investors may wish to seek advice from a financial adviser before making a commitment to invest in shares of any Franklin Templeton Investments fund.
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Footnotes:
1 Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. |
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| 2 Source: Morningstar Workstation and Franklin Templeton Investments, in SGD, NAV-NAV, dividends reinvested. |
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