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

Management

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, 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 bond index
  • May utilize three independent sources of potential alpha: 
    • Yield curve
    • Currencies
    • Credit (sovereign and corporate)

Investment Process

Rating

Overall Morningstar Rating As of 08/31/2021

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 08/31/2021

Years Ratings Funds
in category
3
2 Stars
309
5
2 Stars
278
10
Stars

Morningstar Style Box As of07/31/2021

Strategy, Benefits, Results

Strategy

  • 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.

Benefits

  • 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.