In times of heightened macroeconomic uncertainty such as these, scenario analysis can help investors and advisors understand how return profiles may fare in a range of conditions. This is particularly important as inflation, spiking interest rates and looming recession risks are challenging both short-term and long-term assumptions about markets and the global economy. 

In this resource from the team at ClearBridge Investments, short-term and long-term economic scenarios are examined to test infrastructure's strength amid potential economic regime changes. The analysis indicates that infrastructure returns may demonstrate resilience to several challenging short-term and long-term macroeconomic changes, as tested three key variables: 

• Inflation 
• Real GDP growth
• The change in 10-year nominal bond yields

The performance of infrastructure in the six scenarios covered in this resource represents the value investors may expect from actively managed infrastructure portfolios. 

Disclaimers:

Professional Investor use only. Not for consumer use. Not for use with Investors in the United States.

© 2023 Franklin Templeton. All rights reserved. The information presented herein is for illustrative and discussion purposes only and does not constitute an offering of any security, product, service or fund, nor does it constitute any type of investment, tax or legal advice. The information contained in this piece is not a complete analysis of every material fact regarding the market and any industry sector, a security or a portfolio. Statements of fact have been obtained from sources considered reliable but no representation is made as to the completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date of the material. Our investment process is dynamic and subject to change over time. There is no assurance that any solution, strategy or model portfolio will be successful. In addition, there can be no assurance that market or economic scenarios, risk/return expectations or models will prove to be accurate. Past performance does not guarantee future results and results may differ over future time periods. We accept no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in this material is at the sole discretion of the user. The information presented herein is considered reliable at the present time, however, we do not represent that it is accurate or complete, or that it should be relied upon as such. Speculation or stated beliefs about future events, such as market and economic conditions, company or security performance, upcoming product offerings or other projections represent the beliefs of the speaker/author and do not necessarily represent the views of Franklin Templeton Investments Corp. General business, market, economic and political conditions could cause actual results to differ materially from what the speaker presently anticipates or projects. The information presented is not a recommendation or solicitation to buy or sell any securities. Franklin Templeton Canada is a business name used by Franklin Templeton Investments Corp.

In times of heightened macroeconomic uncertainty such as these, scenario analysis can help investors and advisors understand how return profiles may fare in a range of conditions. This is particularly important as inflation, spiking interest rates and looming recession risks are challenging both short-term and long-term assumptions about markets and the global economy. 

In this resource from the team at ClearBridge Investments, short-term and long-term economic scenarios are examined to test infrastructure's strength amid potential economic regime changes. The analysis indicates that infrastructure returns may demonstrate resilience to several challenging short-term and long-term macroeconomic changes, as tested three key variables: 

• Inflation 
• Real GDP growth
• The change in 10-year nominal bond yields

The performance of infrastructure in the six scenarios covered in this resource represents the value investors may expect from actively managed infrastructure portfolios. 

Disclaimers:

Professional Investor use only. Not for consumer use. Not for use with Investors in the United States.

© 2023 Franklin Templeton. All rights reserved. The information presented herein is for illustrative and discussion purposes only and does not constitute an offering of any security, product, service or fund, nor does it constitute any type of investment, tax or legal advice. The information contained in this piece is not a complete analysis of every material fact regarding the market and any industry sector, a security or a portfolio. Statements of fact have been obtained from sources considered reliable but no representation is made as to the completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date of the material. Our investment process is dynamic and subject to change over time. There is no assurance that any solution, strategy or model portfolio will be successful. In addition, there can be no assurance that market or economic scenarios, risk/return expectations or models will prove to be accurate. Past performance does not guarantee future results and results may differ over future time periods. We accept no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in this material is at the sole discretion of the user. The information presented herein is considered reliable at the present time, however, we do not represent that it is accurate or complete, or that it should be relied upon as such. Speculation or stated beliefs about future events, such as market and economic conditions, company or security performance, upcoming product offerings or other projections represent the beliefs of the speaker/author and do not necessarily represent the views of Franklin Templeton Investments Corp. General business, market, economic and political conditions could cause actual results to differ materially from what the speaker presently anticipates or projects. The information presented is not a recommendation or solicitation to buy or sell any securities. Franklin Templeton Canada is a business name used by Franklin Templeton Investments Corp.