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Managed Fund Since 2013
Fixed Income
FEMZX Templeton Sustainable Emerging Markets Bond Fund
- Yield Seeking Flexibility: Taking an approach that is not constrained by its benchmark, the Fund pursues compelling yield opportunities across both local and non-local currency denominated emerging market sovereign bonds.
- Research-Driven Country and Currency Selection: High-conviction positioning informed by in-depth macroeconomic and country-specific research potentially delivers distinct sources of returns.
- Momentum Based Approach to ESG Integration: Utilizes a proprietary Environmental, Social and Governance scoring methodology that evaluates both current practices and forward-looking momentum, creating a differentiated approach to sustainable investing.
Popular Documents
Total Net Assets
$25.27M
As of 12/31/2025 (Updated Monthly)
Overview
Fund Facts
Fund description
The fund's investment goal is to seek current income with capital appreciation as a secondary goal. Under normal market conditions, the Fund invests at least 80% of its net assets in a non-diversified portfolio of government bonds issued by emerging market countries pursuant to the investment manager's investment strategy that emphasizes the current and projected sustainability efforts of emerging market countries in certain environmental, social and governance (ESG) categories (sustainability investment strategy).
Identifiers
- Ticker
- FEMZX
- Fund Number
- 012
- CUSIP Code
- 880208780
Average Annual Total Returns As of 12/31/2025
Advisor Class
- 26.76%1 Year
- 11.21%3 Years
- 3.17%5 Years
- 2.77%10 Years
- 1.71%Since Inception
04/01/2013
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Asset Allocation
As of 12/31/2025 - Market Value % of Total (Updated Monthly)
Fixed Income95.85% | |
Equity0.00% | |
Cash & Cash Equivalents4.15% |
Additional Fund Info
- Share Class Inception Date
- 04/01/2013
- Investment Style
- Government
- Lipper Classification
- Emg Mkts LC Debt Funds
- Morningstar Category
11 - Emerging-Markets Local-Currency Bond
Manager and Commentary
About the Team
Templeton Global Macro
Templeton Global Macro is a pioneer in unconstrained global fixed income investing. The team combines qualitative macroeconomic analysis with quantitative tools, looking beyond traditional fixed income benchmarks, and aims to pinpoint the most attractive investment opportunities globally.
Commentary Highlights
September 30, 2025- Markets: Tariffs and trade policy continued to dominate much of the news cycle during the third quarter of 2025. The United States announced trade deals with some major trading partners, but there were also moves toward a number of trade agreements that excluded the United States. The US dollar (USD) exhibited mixed performance during the period, edging higher on average but still ending the quarter below end-2024 levels. Inflation outcomes were mixed over the period, with trends in developed markets somewhat higher, while emerging markets saw sideways-to-lower moves. Global monetary policy remained in an easing cycle, with developed markets cautiously easing, while a number of emerging markets are further along in their cutting paths. The US Federal Reserve resumed its rate-cutting cycle, reducing the federal funds rate target range (for the first time this year) by 25 basis points (bps) to 4.00%–4.25%. Most developed market bond yields rose over the period, but the 10-year US Treasury note’s yield fell by eight bps to end the quarter at 4.15%. Emerging markets bond yields delivered mixed results, with several regions showing improved performance.
- Contributors: Interest-rate strategies contributed to absolute fund performance during the quarter, as did overall credit exposures and currency positions.
- Detractors: The fund’s position in the Ghanaian cedi detracted from absolute results.
- Outlook: While we expect global growth to be weaker than we had anticipated prior to the imposition of tariffs, we believe a recession should largely be avoided.
Franklin Templeton Fixed Income
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Managed Fund Since 2018
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Managed Fund Since 2021
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Managed Fund Since 2021
Latest Insights
January 8, 2026
October 3, 2025
August 5, 2025
June 11, 2025
Performance
Average Annual Total Returns
As of 12/31/2025
Selected Month December 2025
Advisor Class - With Sales Charge (POP) (%)
Month End
As of 12/31/2025
Advisor Class - Without Sales Charge (NAV) (%)
Month End
As of 12/31/2025
JP Morgan GBI-EM Global Diversified Index (%) 4
Month End
As of 12/31/2025
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 3
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Portfolio
Assets
As of12/31/2025 (Updated Monthly)
- Total Net Assets
- $25.27 Million
Positions
As of 12/31/2025 (Updated Monthly)
Number of Holdings
- Fund
- 77
- Benchmark
- 433
Portfolio Statistics
As of 12/31/2025 (Updated Monthly)
Average Weighted Maturity
- Fund
- 7.04 Years
- Benchmark
- 7.83 Years
- Fund
- 4.88 Years
- Benchmark
- 5.35 Years
Currency Exposure
As of 12/31/2025 - Notional Exposure % of Total (Updated Monthly)
| Currency | Fund | Benchmark |
|---|---|---|
Latin America/Caribbean | 34.40% | 24.20% |
| Brazilian Real | 12.96% | 6.13% |
| Mexican Peso | 8.34% | 10.00% |
| Uruguayan Peso | 6.21% | 0.20% |
| Colombian Peso | 3.69% | 3.73% |
| Peruvian Nuevo Sol | 1.93% | 2.12% |
| Chilean Peso | 1.27% | 1.77% |
Mideast/Africa | 25.47% | 7.49% |
| Namibian Dollar | 10.36% | — |
| Egyptian Pound | 9.02% | — |
| Nigerian Naira | 3.08% | — |
| South African Rand | 2.11% | 7.49% |
| Ghanaian Cedi New | 0.91% | — |
Asia | 25.40% | 48.45% |
| Malaysian Ringgit | 12.19% | 9.88% |
| Indian Rupee | 7.39% | 10.02% |
| Uzbek Som | 2.39% | — |
| South Korean Won | 2.26% | — |
| Kazakhstani Tenge | 2.13% | — |
| Philippine Peso | 1.76% | — |
| Chinese Renminbi | -2.72% | — |
Europe | 17.18% | 19.86% |
| Serbian Dinar | 8.97% | 0.27% |
| Polish Zloty | 6.71% | 8.16% |
| Euro | 1.50% | — |
North America | -2.45% | — |
| US Dollar | -2.45% | — |
Distributions & Tax
Federal ID Number 90-0922858
For information on tax years prior to 2008, please contact us2025 tax information will be available in early February
These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.
Distributions per Share ($)
Data not currently available.
Pricing
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Templeton Sustainable Emerging Markets Bond Fund | |||
| Product Commentary - Templeton Sustainable Emerging Markets Bond Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Templeton Sustainable Emerging Markets Bond Fund - Advisor Class | |||
| Annual Financial Statements and Other Information - Templeton Income Trust | |||
| Semi-Annual Report - Templeton Sustainable Emerging Markets Bond Fund - Advisor Class | |||
| Semi-Annual Financial Statements and Other Information - Templeton Income Trust | |||
| Prospectus - Templeton Income Trust SAI | |||
| Summary Prospectus - Templeton Sustainable Emerging Markets Bond Fund | |||
| Statement of Additional Information - Templeton Income Trust SAI | |||
| Fiscal Q1 Holdings - Templeton Income Trust | |||
| Fiscal Q3 Holdings - Templeton Income Trust |
Risks
All investments involve risks, including possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The managers’ environmental, social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forgo favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy's ESG directives will be successful or will result in better performance. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. These and other risks are discussed in the fund’s prospectus.
Important Information
Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
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Important data provider notices and terms available at www.franklintempletondatasources.com.
Performance data quoted represents past performance, which does not guarantee future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
The JP Morgan GBI-EM Global Diversified Index tracks total returns for local-currency bonds issued by emerging market governments. The index includes only those countries that are accessible by most of the international investor base and excludes countries with explicit capital controls, but it does not factor in regulatory/tax hurdles in assessing eligibility. For this index, the maximum weight to a country is capped at 10%.
Source: JP Morgan.