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 currencies, interest rates and sovereign credit that can offer attractive potential 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 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 global interest rates and currency trends provides the best potential for solid risk-adjusted returns. The strategy 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
  • Active positioning across these areas
    • Precisely isolate desired exposures
    • Risk budget composition will shift based on relative attractiveness during global economic and credit cycles

Rating

Overall Morningstar Rating As of 07/31/2019

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 07/31/2019

Years Ratings Funds
in category
3
5 Stars
192
5
4 Stars
181
10
4 Stars
111

Morningstar Style Box

We do not publish a style box for this fund.

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.

Selling The Fund

  1. Point out the fund's strong performance record across multiple periods.
  2. Highlight the fund's inception date in 1986 and mention that it is one of the oldest global bond funds.
  3. Emphasize the extensive research resources and global expertise of the investment team.
  4. Explain how the fund's extensive geographic diversification provides access to investments that would be difficult for an investor to access on his or her own.

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