United States
Templeton Global Bond Rising Rates
While many said they believed rates would eventually head upwards, not all managers were as proactive as Dr. Hasenstab about positioning their portfolios for the shift. Hear his thoughts on the impact government policy could have on inflation, economic growth and interest rates moving forward.
Average Annual Total Returns
Periods Ended June 30, 2017
| Year-to-Date Total Returns | 1-Year | 5-Year | 10-Year | Since Inception | Expense Ratios (Net/Gross) | |
|---|---|---|---|---|---|---|
| Templeton Global Bond Fund–Advisor Class (TGBAX) | 2.29% | 10.42% | 3.82% | 6.58% | 7.69% (9/18/86) | 0.68%/0.74% |
| Templeton Global Total Return Fund–Advisor Class (TTRZX) | 3.55% | 11.76% | 4.64% | ––– | 8.28% (9/30/08) | 0.83%/0.86% |
| Bloomberg Barclays US Aggregate Bond Index1 | 2.27% | -0.31% | 2.21% | 4.48% | ––– | ––– |
| Citigroup World Government Bond Index1 | 4.49% | -4.14% | -0.20% | 3.49% | ––– | ––– |
| Bloomberg Barclays Multiverse Index1 | 4.58% | -1.38% | 1.05% | 3.85% | ––– | ––– |
30-Day Standardized Yields
As of June 30, 2017
| With Waiver / Without Waiver | |
|---|---|
| Templeton Global Bond Fund–Advisor Class | 5.22%/5.16% |
| Templeton Global Total Return Fund–Advisor Class | 5.70%/5.64% |
Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The fund’s investment return and principal value will change with market conditions, and you may have a gain or a loss when you sell your shares. Please call Franklin Templeton at (800) DIAL BEN/(800) 342-5236 or visit franklintempleton.com for the most recent month-end performance.
Advisor Class shares are only offered to certain eligible investors as stated in the prospectus. They are offered without sales charges or Rule 12b-1 fees.
ABOUT THE FUNDS
GAIN FROM OUR PERSPECTIVE
A Record of Impressive Returns
This flyer illustrates how Templeton Global Bond Fund has withstood the test of time and achieved compelling performance over a 30-year time period.
The Value of Active – 1,681 Basis Points
See how Templeton Global Bond Fund’s distinctly different portfolio has led to near- and long-term outperformance relative to its passive benchmark and peer group.
Straight Talk on Templeton Global Bond Fund
This brochure is designed to help strengthen your understanding of the fund, its strategy and the current outlook of the Templeton Global Macro team.
Global Macro Shifts – TRADE AND TAXES IN A WORLD WITH BORDERS
Templeton Global Macro, led by Dr. Michael Hasenstab, examines potential US corporate tax reform and the possible impacts of a border adjustment tax.
This video is not a complete analysis of every material fact regarding any country, market, industry, security or fund. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of February 6, 2017, and may change without notice. A portfolio manager’s assessment of a particular security, investment or strategy is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy; it is intended only to provide insight into the fund’s portfolio selection process. Holdings are subject to change. The value of investments can go down as well as up, and investors may not get back the full amount invested.
1. Source: FactSet Research, Morningstar. March 31, 2017. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. Important data provider notices and terms are available at www.franklintempletondatasources.com.
The funds have a fee waiver associated with any investment they make in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through April 30, 2018. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.
The funds’ 30-day standardized yields are calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. The yields may not equal the funds’ actual income distribution rates, which reflects the funds’ past dividends paid to shareholders.
The funds offer multiple share classes, which are subject to different fees and expenses that will affect their performance. Visit the fund information page for performance and fee details for other share classes: Templeton Global Bond Fund / Templeton Global Total Return Fund.
Effective 1/1/97, Templeton Global Bond Fund began offering Advisor Class shares. For periods prior to the fund's Advisor Class inception date, a restated figure is used based on the fund's oldest share class, Class A performance, excluding the effect of Class A's maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund's Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.
Bloomberg Barclays US Aggregate Bond Index is a market-capitalization weighted index representing the U.S. investment-grade fixed rate taxable bond market.
Citigroup World Government Bond Index is a market capitalization weighted index consisting of investment-grade world government bond markets.
Bloomberg Barclays Multiverse Index provides a broad-based measure of the global fixed-income bond market. The index represents the union of the Global Aggregate Index and the Global High-Yield Index and captures investment-grade and high-yield securities in all eligible currencies.
What are the risks?
All investments involve risks, including possible loss of principal.
Templeton Global Bond Fund
Currency rates may fluctuate significantly over short periods of time, and can reduce returns. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses (as well as enable gains) on an amount that exceeds the fund's initial investment. The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security's value and on the fund's ability to sell such securities when necessary to meet the fund's liquidity needs or in response to a specific market event. Foreign securities involve special risks, including currency fluctuations and economic and political uncertainties. Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets' smaller size and lesser liquidity. Investments in lower-rated bonds include higher risk of default and loss of principal. Changes in interest rates will affect the value of the fund's portfolio and its share price and yield. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. The fund is also non-diversified, which involves the risk of greater price fluctuation than a more diversified portfolio. Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value.
Templeton Global Total Return Fund
Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses on an amount that exceeds the fund's initial investment. The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security's value and on the fund's ability to sell such securities when necessary to meet the fund's liquidity needs or in response to a specific market event. Foreign securities involve special risks, including currency fluctuations (which may be significant over the short term) and economic and political uncertainties; investments in emerging markets involve heightened risks related to the same factors. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due. Investments in lower-rated bonds include higher risk of default and loss of principal. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value. These and other risk considerations are discussed in the funds' prospectus.
For more information on any funds, contact your financial advisor or download a prospectus. 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.
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Franklin Distributors, LLC. Member FINRA/SIPC. Prior to July 7, 2021, Franklin Templeton Distributors, Inc., and Legg Mason Investor Services, LLC served as mutual fund distributors for Franklin Templeton.
