ASIA, January 22, 2026 – As 2026 unfolds , Franklin Templeton sees broadening opportunities across global capital markets . Our experts from various specialist investment managers share their perspectives on their respective asset classes.
Commenting on income opportunities and asset allocation, Ed Perks, Chief Investment Officer, Franklin Income Investors, said : “ We maintain a broadly diversified portfolio across fixed income and equity assets. Within fixed income, we emphasize broad opportunities from the lens of an income investor. We favor U . S . Treasury securities, agency mortgage - backed securities, investment - grade bonds, high - yield corporate bonds and leveraged loans. Additionally, with interest rates moving toward their long - term targ et and a shift toward a more neutral monetary policy, we anticipate a more constructive environment for broad diversification in fixed income investments.
He added: “ We expect earnings growth to remain a key driver of the market in 2026 and beyond. While the dual effect of higher multiples and earnings growth may not continue, we still anticipate a favorable backdrop for equities. I n addition to dividend - paying common stocks, we are currently looking into convertible securities and equity - linked notes for diversification. We also diversify among a broad range of sectors, including information technology, health care, energy, industrials and consumer staples, given what we consider the high valuations in certain parts of the technolog y sector and more reasonable valuations in other parts of the market. ”