Finding the right balance
Balanced funds offer an investment solution for those looking to take advantage of opportunities offered by both equity and fixed income markets. They help investors attain the positive upside of equities while benefiting from the relative stability of fixed income.
Balance lessens swings of returns
Best and worst five year rolling performance 1
(February 1990 – December 2014)
While stocks have historically performed well over the long term, returns can vary widely -- even over short time periods. Balanced on the other hand has exhibited significantly lower negative returns while delivering much of the positive side.
Stocks represented by MSCI World Index; Bonds represented by Barclays Global Aggregate index; Balanced represented by 50% MSCI World & 50% Barclays Global Aggregate Index.
Balanced provides strong performance
Growth of 1Dollar invested in Global Stocks, Global Fixed Income, Balanced vs. Cash Equivalent and Dollar (Inflation Adjusted Returns) 2
10-Year Period Ended 31 December 2014
Over the long-term, a hypothetical balanced portfolio clearly outperformed global fixed income, cash and Dollar while producing much less volatility than a 100% global stocks portfolio.
1$ invested was worth
STOCKS: $1.68
50% STOCKS; 50% BONDS: $1.52
BONDS: $1.23
CASH EQUIVALENT:$0.93
DOLLAR: $ 0.80
Cash Equivalent data source: FactSet. Inflation data source: Bloomberg LP, 31 December 2014.
Stocks represented by MSCI World Index; Bonds represented by Barclays Global Aggregate index; Balanced represented by 50% MSCI World & 50% Barclays Global Aggregate Index. Dollar is represented by the growth of the nominal dollar, taking inflation into account. Cash Equivalent represented by P & R 90 day US Treasury Index.
A balanced path builds wealth faster
Average time for an Investment to Double. 3
Inflation Adjusted Performance: 31 December 1990 – 31 December 2014.
The chart below shows hypothetical number of years it would have taken to double an investment adjusted for inflation. Balanced Funds can help you reach your goals much faster than traditional bonds.
3Source: Morningstar. Cash data source: FactSet. Inflation data source: Bloomberg LP, 31 December 2014.
Stocks represented by MSCI World Index; Global Bonds represented by Barclays Global Aggregate index; Government Bonds represented by Barclays Global Treasury Index; Balanced represented by 50% MSCI World Index & 50% Barclays Global Aggregate Bond Index; Cash is represented by P & R 90 Day U.S Treasury Index.
Franklin Templeton Investments
At Franklin Templeton, our unique multi-manager structure featuring specialized investment groups positions us to offer a wide range of balanced funds to suit various investor needs.
With over 65 years of experience in active management and more than 600 investment professionals in 25 countries, we manage $880 billion in assets as of December 2014.
Templeton global balanced fund4:
Templeton Global Balanced Fund seeks capital appreciation and income by investing principally in equity securities and government debt securities throughout the world, including emerging markets. Majority of the fund’s portfolio is normally invested in equity and equity related securities.
Why Invest?
• Expertise and skills of two global teams in one fund
• Global equity selected principally for capital growth potential
Asset allocation target
4Templeton Global Balanced Fund is a sub-fund of the Luxembourg domiciled SICAV, Franklin Templeton Investment Funds (FTIF).
