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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
$21.16M
As of 09/30/2025 (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 09/30/2025
Advisor Class
- 11.64%1 Year
- 12.81%3 Years
- 2.56%5 Years
- 2.59%10 Years
- 1.37%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 09/30/2025 - Market Value % of Total (Updated Monthly)
Additional Fund Info
- Share Class Inception Date
- 04/01/2013
- Investment Style
- Government
- Lipper Classification
- Emerging Markets Local Currency Debt Funds
- Morningstar Category
- Emerging-Markets Local-Currency Bond
Manager and Commentary
About the Team
Templeton Global Macro
Templeton Global Macro is a pioneer in unconstratined global fixed income investing. The team combines qualitative macroeconomic analysis with quantitative tools, looking byeond traditional fixed income benchmarks, and aims to pinpoint the most attractive investment opportunities globally.
Commentary Highlights
June 30, 2025- Markets: Tariffs dominated much of the news cycle during 2025’s second quarter, which began with US President Donald Trump denoting April 2 as “Liberation Day” and announcing wide-ranging tariff measures. Negotiations around final tariff levels for a number of countries were still taking place by the end of the quarter. The US dollar (USD) continued to weaken during the period. Actual inflation outcomes have largely been benign, but there has been some halt in progress, and higher inflation expectations (related to tariffs) engender caution about future paths. Global monetary policy remains in an easing cycle, though officials have voiced concern about the effects of tariffs on growth and inflation. The US Federal Reserve kept the federal funds target rate unchanged at 4.25%–4.50% during the quarter. Geopolitical conflicts flared up again during the period, including a brief conflict between India and Pakistan and a slightly longer one between Israel and Iran, though there has been no lasting impact on financial and commodity markets.
- Contributors: Currency positions contributed to absolute fund performance for the quarter, as did interest-rate strategies and overall credit exposures.
- Detractors: The fund’s net-negative position in the euro detracted from absolute results.
- Outlook: We continue to closely monitor the evolution of tariffs and their potential impacts on US and global growth, inflation and monetary policy across countries.
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
October 6, 2025
October 3, 2025
August 5, 2025
June 11, 2025
Performance
Calendar Year Returns
As of 09/30/2025
Advisor Class - With Sales Charge (POP) (%)
Advisor Class - Without Sales Charge (NAV) (%)
JP Morgan GBI-EM Global Diversified Index (%)
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
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio
Assets
As of09/30/2025 (Updated Monthly)
- Total Net Assets
- $21.16 Million
Positions
As of 09/30/2025 (Updated Monthly)
Number of Holdings
- Fund
- 72
- Benchmark
- 425
Portfolio Statistics
As of 09/30/2025 (Updated Monthly)
Average Weighted Maturity
- Fund
- 7.04 Years
- Benchmark
- 7.77 Years
- Fund
- 4.89 Years
- Benchmark
- 5.28 Years
Currency Exposure
As of 09/30/2025 - Notional Exposure % of Total (Updated Monthly)
| Currency | Fund | Benchmark |
|---|---|---|
Latin America/Caribbean | 34.49% | 24.92% |
| Brazilian Real | 12.12% | 7.04% |
| Mexican Peso | 9.10% | 10.01% |
| Uruguayan Peso | 5.23% | 0.15% |
| Colombian Peso | 4.42% | 3.83% |
| Peruvian Nuevo Sol | 2.20% | 2.02% |
| Chilean Peso | 1.43% | 1.63% |
Mideast/Africa | 25.86% | 7.39% |
| Egyptian Pound | 10.14% | — |
| Namibian Dollar | 10.05% | — |
| South African Rand | 2.31% | 7.39% |
| Nigerian Naira | 2.17% | — |
| Ghanaian Cedi New | 1.19% | — |
Asia | 23.84% | 48.23% |
| Malaysian Ringgit | 10.78% | 9.70% |
| Indian Rupee | 6.34% | 10.01% |
| South Korean Won | 2.78% | — |
| Uzbek Som | 2.72% | — |
| Kazakhstani Tenge | 2.25% | — |
| Philippine Peso | 2.16% | — |
| Chinese Renminbi | -3.20% | — |
Europe | 14.52% | 19.46% |
| Polish Zloty | 6.78% | 7.90% |
| Serbian Dinar | 5.99% | 0.28% |
| Euro | 1.75% | — |
North America | 1.29% | — |
| US Dollar | 1.29% | — |
Distributions & Tax
- Distribution Frequency
- QuarterlyThis fund is an ex-Dividend fund
- Capital Gain Distributions
- September, December
Rates and Yields
Distribution Rate
At Net Asset Value (NAV) 7.56%
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
09/19/2025
06/18/2025
03/19/2025
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
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
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.
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.
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.