Comparative risk and yield characteristics of hypothetical asset mixes: benchmark-based and diversified, unconstrained

Notes: As of 31 March 2016. The hypothetical diversified asset mix includes 70% Barclays Global Aggregate Bond Index, 10% Barclays Global High Yield Index, 10% Barclays Emerging Market Hard Currency Aggregate Bond Index and 10% Barclays Emerging Market Local Currency Government Index. Source: Barclays POINT/Global Family of Indices. © 2016 Barclays. Used with Permission. The above performance data is based on the respective index or indices shown. An index is unmanaged and does not have fees and expenses, which will affect performance. One cannot invest in an index. The performance data does not reflect the performance of any Franklin Templeton product or strategy. Past performance is not an indicator or a guarantee of future performance. Value at Risk (VaR) is one of the standard industry tools used to monitor market risk exposure. VaR estimates the probability of portfolio losses based on the statistical analysis of historical volatilities and correlations, taking into account inter-relationships between different markets and rates. The VaR estimate is derived from many Monte Carlo simulations generated by the VaR model. This analysis was run with a 95% confidence interval.