Fixed Income Diversification
1
HIGH YIELD BOND DEX HIGH YIELD TOTAL RETURN LONG TERM BOND DEX LONG TERM TOTAL RETURN CORPORATE BOND DEX MID CORP TOTAL RETURN MID TERM BOND DEX MID TERM TOTAL RETURN MORTGAGE DEX MORTGAGE TOTAL RETURN SHORT TERM BOND DEX SHORT TERM TOTAL RETURN DIVERSIFIED FIXED INCOME 16.67% OF EACH OF THE 6 INDICES HIGHER RETURNS HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND HIGH YIELD BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND LONG TERM BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND CORPORATE BOND DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME DIVERSIFIED FIXED INCOME MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MID TERM BOND MORTGAGE MORTGAGE MORTGAGE MORTGAGE MORTGAGE MORTGAGE MORTGAGE MORTGAGE SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND SHORT TERM BOND Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Written and published by Investors Group as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant. Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corpora- tions. © Investors Group Inc. 2014 MP1722 (01/2014) Fixed Income Diversification Just like diversifying equity holdings makes sense, it’s equally important to diversify the fixed income portion of an investment plan. Different investment strategies come with different interest rate sensitivity, yields and credit quality. Some are designed for greater stability while others offer the potential for higher returns. The chart below captures relative performance of six fixed income investments, and one diversified portfolio that has been equally weighted among those six investments. The portfolio’s diversity among the various investments reduces overall volatility. RICHARD SHEPPARD CFP Senior Financial Consultant Investors Group Financial Services Inc. Tel: (403) 226-5531 [email protected] HIGH YIELD BOND MORTGAGE SHORT TERM BOND CORPORATE BOND DIVERSIFIED FIXED INCOME MID TERM BOND LONG TERM BOND MORTGAGE 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-
Upload
richard-sheppard -
Category
Economy & Finance
-
view
94 -
download
0
description
Just like diversifying equity holdings makes sense, it’s equally important to diversify the fixed income portion of an investment plan. Different investment strategies come with different interest rate sensitivity, yields and credit quality. Some are designed for greater stability while others offer the potential for higher returns. The chart below captures relative performance of six fixed income investments, and one diversified portfolio that has been equally weighted among those six investments. The portfolio’s diversity among the various investments reduces overall volatility.
Transcript of Fixed Income Diversification
HigH Yield Bonddex high yield total return
long term Bonddex long term total return
Corporate Bonddex mid Corp total return
mid term Bonddex mid term total return
mortgagedex mortgage total return
sHort term Bonddex short term total return
diversified fixed inCome16.67% of eaCh of the 6 indiCes
hig
he
r r
et
ur
ns
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
h i g h y i e l d b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
l o n g t e r m b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
c o r p o r at e b o n d
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
d i v e r s i f i e d f i x e d i n c o m e
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n d
m i d t e r m b o n dm o r t ga g e
m o r t ga g e
m o r t ga g e m o r t ga g e
m o r t ga g e
m o r t ga g e
m o r t ga g e m o r t ga g e
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
s h o r t t e r m b o n d
insurance products and services distributed through i.g. insurance services inc. insurance license sponsored by the great-West life assurance Company. Written and published by investors group as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant.Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corpora-tions. © investors group inc. 2014 mp1722 (01/2014)
Fixed Income DiversificationJust like diversifying equity holdings makes sense, it’s equally important to diversify the fixed income portion of an investment plan. Different investment strategies come with different interest rate sensitivity, yields and credit quality. Some are designed for greater stability while others offer the potential for higher returns.
The chart below captures relative performance of six fixed income investments, and one diversified portfolio that has been equally weighted among those six investments. The portfolio’s diversity among the various investments reduces overall volatility.
RICHARD SHEPPARD Cfp
Senior Financial ConsultantInvestors Group Financial Services Inc.
Tel: (403) 226-5531 [email protected]
h i g h y i e l d b o n d
m o r t ga g e
s h o r t t e r m b o n d
c o r p o r at e b o n d
d i v e r s i f i e d f i x e d i n c o m e
m i d t e r m b o n d
l o n g t e r m b o n d
m o r t ga g e
2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3
