Fixed Income Sector Returns 2004
2005
2006
2007
2008
EMD
EMD
High Yield
TIPS
Treas.
11 9% 11.9%
12 3% 12.3%
11 8% 11.8%
11 6% 11.6%
13 7% 13.7%
58 2% 58.2%
2010
10-yrs. '04 - '13 Cum. Ann.
2011
2012
2013
4Q13
TIPS
EMD
High Yield
High Yield
High Yield
High Yield
15 1% 15.1%
13 6% 13.6%
17 9% 17.9%
7 4% 7.4%
3 6% 3.6%
128 6% 128.6%
8 6% 8.6%
High Yield High Yield
EMD
Treas.
MBS
EMD
EMD
Muni
High Yield
MBS
EMD
EMD
EMD
11.1%
Asset Alloc. 3.5%
10.0%
9.0%
8.3%
34.2%
12.8%
12.3%
15.8%
-1.4%
1.2%
126.9%
8.5%
TIPS
TIPS
MBS
Corp.
Treas.
Corp.
Corp.
Corp.
2.8% 8%
5.2% 5 %
Barclays Agg 5.2% 5 %
Corp.
8.5% 8 5%
Barclays Agg 7.0% 0%
18.7% 8 %
9.0% 9 0%
9.8% 9 8%
9.8% 9 8%
-1.5% 5%
1.1% %
Asset Alloc. 72.3% 3%
Asset Alloc. 5.6% 5 6%
MBS
Muni
Asset Alloc. 9.1%
Asset Alloc. 7.7%
Asset Alloc. -2.0%
Asset Alloc. 0.3%
Corp.
1.5%
Asset Alloc. 7.8%
Corp.
6.9%
Asset Alloc. 15.3%
68.1%
5.3%
Asset Alloc. 6.4%
Asset Alloc. -0.8%
Corp.
TIPS
TIPS
TIPS
8.1%
7.0%
Barclays Agg -2.0%
Muni
11.4%
Barclays Agg 6.5%
-0.1%
60.6%
4.8%
Muni
Muni
5.7%
High Yield
2.8%
Asset Alloc. 5.1%
Corp.
Muni
Muni
5.4%
2.7%
4.7%
MBS
High Yield
4.7%
Asset Alloc. 6.2%
Fixed In ncome
2009
Barclays Agg 4.3%
Treas.
Muni
Muni
-2.2%
Barclays Agg -0.1%
57.5%
4.6%
Treas.
MBS
MBS
MBS
-2.7%
-0.4%
57.0%
4.6%
MBS
EMD
Treas.
6.2%
2.6%
-4.1%
-0.8%
Barclays Agg 56.0%
Barclays Agg 4.5%
Muni
High Yield
Treas.
TIPS
TIPS
Treas.
Treas.
4.0%
5.0%
2.0%
-8.6%
-2.0%
51.3%
4.2%
EMD
TIPS
Muni
TIPS
2.7%
Barclays Agg 4.3%
5.2%
-2.4%
9.9%
6.3%
Barclays Agg 7.8%
MBS
Corp.
Corp.
Corp.
Treas.
EMD
2.6%
4.3%
4.6%
-4.9%
Barclays Agg 5.9%
5.9%
7.0%
Barclays Agg 4.2%
Treas.
Muni
EMD
MBS
MBS
MBS
3.1%
4.3%
-14.7%
5.9%
5.4%
Treas. -3.6%
4.1%
Barclays Agg 2.4%
Treas.
Corp.
TIPS
3.5%
1.7%
0.4%
Muni
TIPS
High Yield High Yield 1.9%
-26.2%
Source: Barclays Capital, FactSet, J.P. Morgan Asset Management. Past performance is not indicative of future returns. Fixed income sectors shown above are provided by Barclays Capital and are represented by: Barclays Capital U.S. Aggregate Index; MBS: Fixed Rate MBS Index; Corporate: U.S. Corporates; Municipals: Muni Bond 10-Year Index; Emerging Debt: Emerging Markets USD Index; High Yield: Corporate High Yield Index; Treasuries: Barclays Capital U.S. Treasury; TIPS: Barclays Capital TIPS. The “Asset Allocation” portfolio assumes the following weights: 10% in MBS, 20% in Corporate, 15% in Municipals, 10% in Emerging Debt, 10% in High Yield, 25% in Treasuries, 10% in TIPS. Asset allocation portfolio assumes annual rebalancing. Guide to the Markets – U.S.
29
Data are as of 12/31/13.