Fund Description

The fund seeks current income with capital appreciation and growth of income, by investing at least 80% of its net assets in bonds of governments, government related entities and government agencies located anywhere in the world. The fund regularly enters into various currency-related and other transactions involving derivative instruments.

Strategy Statement

"We search the world for investment opportunities in yield curves, currencies and sovereign credit that may offer attractive returns and additional portfolio diversification."

Michael Hasenstab, Ph.D

Management

Michael Hasenstab, Ph.D

Michael Hasenstab, Ph.D

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2001
Calvin Ho, Ph.D

Calvin Ho, Ph.D

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2018

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

We believe:

  • An unconstrained approach to global fixed income investing can
    lead to long-term value potential
  • Integrating global macroeconomic analysis and ESG indicators
    with in-depth country research can help identify long-term
    economic imbalances
  • Actively allocating risk across three independent potential
    sources of return can deliver diversification benefits and the
    potential for more consistent returns in diverse markets

Investment Strategy

  • Seeks to maximize total investment return consisting of a
    combination of interest income, currency gains and capital
    appreciation
  • Utilizes a benchmark-agnostic approach to take advantage
    of an unconstrained worldview
  • Seeks to maintain a longer-term volatility profile that is
    commensurate with that of a traditional global government
    bond index
  • May utilize three independent sources of potential alpha:
    • Yield Curves
    • Currencies
    • Sovereign credit

Investment Process

Rating

Overall Morningstar Rating As of 02/28/2021

Rating Category: Nontraditional 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 02/28/2021

Years Ratings Funds
in category
3
1 Stars
270
5
2 Stars
246
10
2 Stars
98

Morningstar Style Box As of01/31/2021

Strategy, Benefits, Results

Strategy

  • Quantitative and qualitative analysis is supplemented with on-the-ground research, leveraging the resources of local analysts around the world to identify investment opportunities and risks that a solely U.S.-based manager might miss.
  • Research efforts focus on rigorous country analysis to identify economic imbalances leading to value opportunities in currencies, interest rates (duration) and sovereign credit.
  • We continually evaluate risk, shifting the risk budget based on relative attractiveness over the course of global economic and credit cycles.

Benefits

  • Geographic Diversification. The fund has a diversified portfolio by investing in any country or currency from around the world to find the best values for the portfolio.
  • Global Platform. Global and local experts provide extensive country analysis through multiple perspectives and lenses.
  • Experienced Management. Michael Hasenstab has managed the fund since 2001 and is backed by a large and experienced team of analysts around the world.