Soaring inflation and rapid interest rate hikes have caused both stock and bond assets to fall sharply this year, and the traditional balance strategy of six stocks and four bonds has not been spared.

(Schematic, Reuters)

[Reporter Wu Ziya/Taipei Report] Rising inflation and rapid interest rate hikes have caused both stocks and debt assets to fall sharply this year. The traditional balance strategy of six stocks and four bonds has not been spared. If we take 60% of the S&P 500 index + 40% According to the original currency statistics of the Bloomberg U.S. Composite Bond Index, the decline has reached 12.91% as of the end of November this year, which is the second worst performance since 1976 after the 20.1% decline in the 2008 financial tsunami (full year).

According to the statistics of Lipper Information, the performance of 39 overseas balanced and flexible hybrid funds in Taiwan’s nuclear archives has dropped by an average of 5.52% this year as of December 2, which is slightly better than that of 658 equity funds with an average decline of 8.39%. Among them, Franklin’s stable monthly income The performance of the fund this year, the past year and the past two years has been ranked first among the 39 tiers, with 4.79%, 8.47% and 16.97% positive return performance respectively, which is better than the average performance of the 39 tiers as a whole, with a gap of 10-20 percentage points many.

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According to the asset management industry, the investment strategy of Franklin Stable Monthly Income Fund does not set a certain investment ratio for various assets such as stocks and bonds, but is allocated flexibly by the investment team, focusing on the threat of high inflation and the environment of interest rate hikes. The management team Significant reductions in shares and debt increase this year have not only avoided the risk of a sharp drop in the stock market, but also grasped the opportunity for income from rising bond yields.

In addition, Jin, the manager team, used the cover call strategy more flexibly, which not only increased the fund's income and controlled downside risks, but also increased the opportunity to participate in the rebound of capital gains. In such a year of intense volatility, the fund continued to achieve Pursuing the investment goal of income, the amount of dividends has been increased twice in a row. The current annualized dividend rate is close to 8%.

Investment experts pointed out that the traditional balance strategy of six stocks and four bonds or investment products with fixed allocation ratios are difficult to cope with the rapidly changing market. Investors need to pay more attention to the flexibility of the fund investment strategy and whether the management team is flexible enough when making choices.

As 2023 is approaching, major international investment institutions have successively released their investment outlooks for the new year. Morgan Stanley (11/14) and Goldman Sachs (11/17) are both optimistic about next year’s income investment opportunities, saying goodbye to investment The market has been miserable this year. When making investment plans for the new year, investors may wish to allocate more investment products that pursue stable monthly returns such as high dividends and high debt interest rates, and do not forget to compare whether the management team’s operating strategies are adequate. Flexibility to fully respond to rapidly changing market changes.

The top five overseas balanced and flexible mixed fund performance this year

Taiwan dollar rate of return%

In this year

Nearly a year

last two years

Nearly three years

Franklin Stable Monthly Income Fund USD

4.79

8.47

16.97

12.48

Fengyu Huili Long Eagle Multi-income Fund AU-C

4.66

7.74

11.74

8.96

Jinda Global Multi-Income Fund C Accumulated Shares

4.09

4.93

1.88

-0.72

Schroder Global Target Return (USD) A-Cumulative

1.60

2.52

5.70

7.86

MFS Quansheng Global Asset Allocation Fund A1 USD

0.11

1.96

6.62

8.31

39 files average

-5.52

-4.25

-2.67

-0.60

Source: Lipper Information, NT dollar denominated as of 2022/12/2.

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