Franklin Templeton Investments
Public Site >Sign In  | Register
My Cart
My Cart Summary
Mandatory items may have been added.

<GAIN FROM OUR PERSPECTIVE>

Straight Talk on Templeton Global Bond Fund

Vindication for a Contrarian Vision
November 8, 2012

Michael Hasenstab talks with Barron’s about Templeton Global Bond Fund

View Article

Fund Prospectus

 


 

Staring Over the Edge of Fiscal Cliffs
October 11, 2012

 

 


 

Hasenstab: Not Austerity OR Growth — Austerity AND Growth 
May 24, 2012

 

 


 

Dr. Michael Hasenstab Sticks to His Guns
February 3, 2012

 

 


 

Brochure
Straight Talk on Templeton Global Bond Fund
February 2012

Delve into the investment team’s outlook, strategy, and how they’ve positioned the fund — with this new brochure:

Straight Talk on Templeton Global Bond Fund

View/Order Brochure

 


 

2012 Outlook from Dr. Michael Hasenstab
January 26, 2012

View/Download PDF

 


 

Dr. Michael Hasenstab on Templeton Global Bond Fund
November 16, 2011

 

Generating Returns in a Rising Interest Rate Environment

 

Benefiting from Sovereign Credit Opportunities and Currency Markets

 

A Disciplined Approach to Risk Management

 


 

Templeton Global Bond Fund’s
Investment Strategy and the 3 Cs
November 16, 2011

 


 

October 24, 2011
Investment Outlook: Templeton Global Bond Fund
 

Given the uncertainty in the market right now, it’s a great time to take a closer look at the strategic, long-term focus of Templeton Global Bond Fund. This is the first in a series of posts in the coming weeks that will revisit the investment strategy of the fund, including the process used to identify opportunities in the 3 C’s (credit, currencies and curve) as well as the fund’s positioning.

To start, here are some highlights from the portfolio management team’s quarter-end investment outlook:

A Multi-Speed Global Recovery
The global economic recovery has lost some steam while maintaining its multi-speed character. There has been a visible deceleration of economic growth in the U.S. and Europe, while many emerging markets and those advanced economies benefiting from strong fundamentals continue to enjoy a robust economic performance.

We Expect to See Rising Bond Yields in Many Economies
We expect a continuing global economic recovery, which should lead to rising bond yields in most economies. Even in the U.S. where we expect the recovery to be only moderate, historically low bond yields are likely to rise as slowly improving economic activity combines with the historically large financing needs of the public sector.

We Expect Emerging and Select Developed Markets to Outperform in the Environment
We have been positioned for an environment in which emerging and select developed markets outperform the largest advanced economies and we believe that this thesis remains in place despite the massive bout of panic that was triggered at the end of September.

Active Management in a Rising Interest Rate Environment
Actively managed global fixed income investing in a rising interest rate environment also offers the opportunity to pursue relatively high yields without taking, what we consider, much duration or credit risk. We expect that the currencies of economies with relatively strong growth, where policy is likely to be tightened over the short term, should appreciate in the medium-term against the currencies of the G-3 (U.S., E.U., Japan), where monetary policy is likely to remain loose over an extended period.

Fixed Income Opportunities beyond Currencies
We believe the multi-speed global economic recovery creates attractive fixed income opportunities beyond currencies. Strong relative fundamentals also support select sovereign credits and even some duration exposures in economies where the extent of likely monetary tightening has already been priced in and long-term government bond yields are likely to benefit from improved policymaking and lower risk premiums over the medium term.


Important Legal Information

The commentary/outlook provided is not a complete analysis of every material fact regarding any country, region, market, investment or strategy. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date noted and may change without notice. A portfolio manager’s assessments 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.

What are the risks?
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. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. 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. Special risks are associated with foreign investing, which may be heightened in developing markets, including currency rate fluctuations, economic instability and political developments. 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. The fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. These and other risk considerations are discussed in the fund’s prospectus.

For more information on any of our funds, contact your financial advisor or download a free 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.

Franklin Templeton Distributors, Inc.


Investor Resources

 


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




    For U.S. residents only.