The normalisation of fixed income yields, thanks to interest rate increases in recent years, opens doors to both income generation and total return. This change represents an opportunity for investors seeking reliable income streams in a fluctuating market environment.
Why Fixed Income?
Power up your approach to fixed income opportunities
Recent shifts in the financial landscape have created new opportunities within fixed income investing. From the resurgence of yield opportunities to the strategic advantages of portfolio diversification, and the potential of global and local markets for capital preservation, now is the time to engage. Discover how these shifts present the opportunity to elevate your approach to fixed income.
Yield is Back
Global Active Opportunities
By adopting a global perspective, active managers can help investors position their portfolios to benefit from regions where monetary policy is most favourable for fixed income investing, such as in countries where rates are decreasing or where accommodative policies support bond prices.
Defensive Returns & Diversification
For investors who are focused on capital preservation, fixed income is a critical portfolio component. The asset class typically offers lower risk compared to stocks and, in the case of high-quality government or corporate bonds, can provide a level of ballast to the total portfolio that can dampen volatility and improve overall risk adjusted returns.
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Key Takeaways
- An active approach to fixed income can allow active managers to avoid benchmarks with concentrated exposures and invest where there’s value in the market.
- We look to fixed income to be defensive in nature and our philosophy combines that with credit opportunities to provide income for investors.
- When investing for the long-term, we’ve learned over multiple market cycles to actively take advantage of those opportunities where markets are clearly mispriced, but with clear conviction and the right balance in terms of the risk you’re taking.
Active Fixed Income Specialists
With Franklin Templeton, you gain access to a world class fixed income platform featuring specialist investment managers, each blending deep market knowledge with a tailored approach to crafting differentiated investment strategies that are designed to take your fixed income allocation to new dimensions.
Brandywine Global Investment Management
Brandywine Global’s investment process is built on the philosophy that portfolios should be driven by value opportunities, not benchmark composition. An unconstrained approach provides greater opportunity to uncover value anomalies.
Franklin Templeton Fixed Income
An integrated global fixed income platform that provides a disciplined and systematic approach to active fixed income management integrating top down macroeconomic views, bottom up fundamental research, and rigorous quantitative analysis.
Western Asset Management
One of the world’s leading fixed income managers and provides investment services for a wide variety of clients globally. Western Asset’s investment style emphasises the use of multiple strategies to add value.
Featured Funds
Brandywine Global Opportunistic Fixed Income Fund
- Twenty plus year track record with experienced team.
- Benchmark agnostic, focused on underlying macroeconomic fundamentals and valuation.
- Strong focus on real yield to generate real returns.
Franklin Australian Absolute Return Bond Fund
- Active investment approach utilising fundamental analysis and cross sector relative value.
- Diverse sources of return.
- Strong risk management focus.
Western Asset Australian Bond Fund
- Maximises opportunities by investing across the full fixed income spectrum.
- Embraces bond market development.
- Strong risk management focus.
