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

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

Michael Hasenstab, Ph.D


Michael Hasenstab, Ph.D

Michael Hasenstab, Ph.D

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2008
Calvin Ho, Ph.D

Calvin Ho, Ph.D

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2018


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


Overall Morningstar Rating As of 12/31/2020

Rating Category: Nontraditional Bond

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 12/31/2020

Years Ratings Funds
in category
2 Stars
2 Stars

Morningstar Style Box As of11/30/2020

Strategy, Benefits, Results


  • We seek to generate total return through investment opportunities in currency, interest rate and credit markets.
  • Our multi-sector global bond fund is designed to capitalize on fixed income opportunities around the world.
  • We invest in fixed- and floating-rate bonds of corporations, governments and government-related issuers worldwide.
  • Our assets are allocated based on the manager's assessment of value across countries and sectors given changing market, political and economic conditions, as well as an in-depth evaluation of interest rates, exchange rates and credit risks.
  • Our portfolio management team taps the expertise of the 100-plus investment professionals that comprise Franklin Templeton Fixed Income.


  • Flexible Mandate Expands Opportunity. We can invest in any country, currency or fixed income sector to take advantage of income and capital appreciation opportunities as they arise.
  • Global Expertise. In addition to the experts in our international bond department, we also leverage the broad expertise of Franklin Templeton Fixed Income and its global specialist teams covering every major sector of the fixed-income market.