Franklin Intermediate Investment Grade Credit SMA Performance Data

Average Annual Total Returns (USD %)

3 Mths

Franklin Intermediate Investment Grade Credit SMA – Pure GROSS 4.07 4.93 9.84 0.85 1.97 2.37 3.76

Franklin Intermediate Investment Grade Credit SMA – NET 3.69 3.77 8.22 -0.64 0.48 1.18 2.69

Bloomberg US Intermediate Credit Index 4.58 5.55 11.46 0.67 1.89 2.67 4.14

Calendar Year Returns (USD %)

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014

Franklin Intermediate Investment Grade Credit SMA – Pure GROSS 6.25 -7.46 -1.32 7.43 8.67 -0.11 3.27 1.82 0.62 3.39

Franklin Intermediate Investment Grade Credit SMA – NET 4.69 -8.84 -2.78 5.85 7.67 -1.06 2.34 0.92 -0.15 2.58

Performance Review

The US investment-grade (‘IG’) credit markets generated a strong positive total return of 5.8% in the third quarter of 2024, driven primarily by a significant decline in US Treasury (‘UST’) yields.

Outlook & Strategy

Looking ahead, US IG bond returns are likely to be influenced by Fed policy actions and movements in UST yields. With credit spreads already near historical lows, the potential for further compression may be limited, offering less cushion against potential economic downturns. However, both corporate fundamentals and technical factors remain supportive, as evidenced by strong earnings growth and consistent investor demand.

How this will affect me

Investors in the Franklin Intermediate Investment Grade Credit SMA may experience varying returns based on market conditions and the performance of the strategy. It is important for investors to consider the risks and potential rewards associated with investing in IG bonds.

How this will affect the world

The performance of the US IG credit markets can have broader implications for the global economy, as it reflects investor sentiment, economic stability, and market trends. A strong performance in IG bonds could signal confidence in corporate fundamentals and support continued economic growth.

Conclusion

Overall, the performance data for the Franklin Intermediate Investment Grade Credit SMA highlights the importance of monitoring market conditions, as well as considering the potential impact of Fed policy and UST yield movements on investment returns. Investors should stay informed and consult with financial professionals to make well-informed decisions about their investment strategies.