Fund Description

The fund seeks total investment return consisting of a combination of interest income, capital appreciation and currency gains. The fund primarily invests in fixed and floating-rate debt securities and debt obligations of governments, government-related or corporate issuers worldwide and regularly enters into various currency-related and other transactions involving derivative instruments.

Strategy Statement

"The fund has a flexible strategy, investing in a broad opportunity set across geographic, sector, currency and credit opportunities to maximize income and total return potential for our shareholders."

Michael Hasenstab, Ph.D

Management

Michael Hasenstab, Ph.D

Michael Hasenstab, Ph.D

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2008
Sonal Desai, Ph.D

Sonal Desai, Ph.D

  • Joined Franklin Templeton in 2009
  • Managed Fund Since 2011

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

We believe that applying a fundamental, research-driven approach focused on identifying potential sources of total return (current income and capital appreciation) worldwide and seeking to capitalize on ideas across the entire fixed income opportunity set provide the best potential for solid risk-adjusted returns. The portfolio is run independently of its benchmark, allowing the manager to hold only the positions it believes have the best potential to maximize risk-adjusted returns. This is a high alpha seeking strategy that invests globally and may include allocations
to both developed and emerging markets.

Investment Strategy

Long-Term, Opportunistic Value Approach

  • Long-term, fundamentally driven investment focus
  • Total return approach that is not benchmark driven
  • Identify economic imbalances that may lead to value opportunities in:
    • Interest rates (duration)
    • Currencies
    • Sovereign credit
    • Corporate/spread sectors
    • Bottom-up security selection/sub-sector allocation
  • Active positioning across these areas
    • Precisely isolate desired exposures
    • Risk budget composition will shift based on relative attractiveness during global economic and credit cycles

Investment Process

Rating

Overall Morningstar Rating As of 11/30/2018

Rating Category: World Bond

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 11/30/2018

Years Ratings Funds
in category
3
4 Stars
261
5
4 Stars
247
10
Stars

Morningstar Style Box

We do not publish a style box for this fund.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.