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Not So Boring Bonds

It has been said that bonds are boring. If so, investors don’t seem to mind; bond markets account for by far the largest share of capital market investments worldwide.

A missed opportunity?

The global bond market is the largest by AUM, offering great diversification opportunities.
 

 

  AUM (USD Trillion)
  Total Corporate Supranational & Agency
Global Bond Market 175.93 53.63 122.29
Global Stock Market 124.39 n/a n/a
US Bond Market 45.64 13.80 31.83

Source: Bloomberg, as of February 28, 2025

Why invest now

  • Attractive yields: Although yields have experienced some declines since peaking in 2023, they remain historically elevated.
  • Hedge against uncertainty: Bonds generally benefit during periods of political and economic uncertainty.
  • Diversification in mixed markets:  Fixed income can be used to offset equity market risk in multi-asset portfolios.

Finding the Right Fit

To navigate risks and find opportunities in today’s fast-paced markets, it’s crucial to partner with skilled active managers offering proven strategies and deep capabilities.

Whether you’re looking for potentially higher returns from a low-risk alternative to cash, want to restore balance to your portfolio, diversify with higher-yielding credit or create a steady income stream, we have a strategy to help you reach your goals.

Putting Cash to Work

Shouldn’t your cash work as hard as you do? Keeping it on the sidelines may seem like a good idea, but it can significantly reduce your long-term returns. Instead, consider our range of low-risk investment options to get your money in the game, and increase your portfolio’s upside potential.

Franklin U.S. Low Duration Fund

The Fund’s investment objective is to provide as high a level of current income as is consistent with prudent investing, while seeking preservation of shareholders’ capital.

FTGF Western Asset Short Duration Blue Chip Bond Fund

The Fund's goal is to achieve income and growth of the Fund's value. The Fund invests mainly in higher rated corporate bonds issued in certain developed countries. The Fund will only invest in those corporate bonds that have priority over certain other bonds in a claim against the issuer. 

Putnam Ultra Short Duration

Cash is no longer king. Our low-risk bond funds offer attractive yield, income and growth potential to help increase total returns while minimizing interest rate risk.

Restoring Balance

Core bonds provide a solid foundation for fixed income portfolios, with diversification across the yield curve  to manage volatility, smooth performance and maintain income during periods of uncertainty.

Western Asset Corporate Bond Ladders

Western Asset Corporate Bond Ladders are designed to deliver income opportunities while seeking to preserve capital and reducing interest rate risk by investing in laddered corporate bonds. The strategy invests in a diversified portfolio of credit-monitored investment-grade corporate securities with equally weighted maturities from 1-5 years.

Franklin U.S. Government Fund

The Fund aims to achieve income and safety of principal by investing primarily in debt obligations issued or guaranteed by the United States of America government and its agencies.

Diversify with Credit

Participate in the growth of companies by investing in their bonds. Adding credit to your portfolio can increase diversification, add income streams, and improve risk-adjusted returns.

FTGF Brandywine Global High Yield Fund

The fund's main goal is to provide high levels of income. It also seeks to achieve growth of the fund's value.

Franklin High Yield Fund

High current income fund, primarily invested in U.S. fixed-income securities that offer the highest yield without excessive risk.

Franklin Floating Rate Fund PLC

Seeks to provide investors with as high a level of current income and preservation of capital as is consistent with investing primarily in floating rate or variable rate senior secured corporate loans or senior secured debt securities.

Harnessing Income

Throughout market cycles, all-weather income solutions remain a critical component to achieving financial objectives. Income opportunities continue to present themselves and it is through our Specialist Investment Managers that we provide smart income solutions.

FTGF Brandywine Global Income Optimiser Fund

The fund's goal is to generate income in all market conditions while maintaining the value of the fund. The fund will invest in bonds issued by corporations and governments and may invest in companies located anywhere in the world, including emerging market countries. 

Franklin Strategic Income Fund

The Fund aims to earn a high level of current income and seeks capital appreciation over the long term by investing principally in fixed and floating rate debt securities globally, including those in emerging markets.

Looking for an alternative to Fixed Income?

Franklin Income Fund

A Balanced portfolio with exposure to the US markets. The Franklin Income Fund invests in Equities and Fixed Income mainly of the US markets with an objective to maximize income while maintaining prospects for capital appreciation.

Learn More About These Specialist Investment Managers

Multiple sources of fixed income expertise across a global platform: 50+ years of experience, 140 investment professionals, and $135bn in assets under management.

For over half a century, Western Asset has delivered solutions to clients as one of the world’s leading fixed income managers. The firm has nine offices around the globe and deep experience across the range of fixed-income sectors, employing a top-down approach to long-term fundamental value investing.