Templeton Global Bond Plus

High alpha-seeking global strategy that uses a research-driven, value-based approach that seeks to capitalize on global interest rates, currency and sovereign credit trends. Primary focus includes government and government-related issuance with a 25% maximum limit on below investment grade.

OVERVIEW

STRATEGY SUMMARY

  • Seeks to deliver alpha by identifying economic imbalances and perceived mispricing in the global sovereign bond and currency markets.
  • Invests across three distinct potential sources of alpha—yield curve, currency, and sovereign credit.
  • Utilizes a benchmark-agnostic approach, which allows the portfolio managers to hold only the positions they believe have the best potential to maximize risk-adjusted returns.

BENCHMARK

  • JP Morgan Global Government Bond Index

COMPOSITE PROFILE

A multi-page overview highlighting the composite performance, portfolio characteristics, investment process, management team and commentary.

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"A truly unconstrained global bond strategy has more flexibility to potentially weather and exploit varying market conditions compared to the typical relatively duration-heavy core fixed income portfolio, particularly in a rising rate environment.” –Michael Hasenstab, Ph.D., Portfolio Manager

OUR APPROACH

Investment Philosophy

We believe that applying our bottom-up, research-driven approach focused on identifying potential sources of high current income worldwide and seeking to capitalize on global interest rates and currency trends provides the best potential for strong risk-adjusted returns. This is a high alpha-seeking global strategy that may include allocations to both developed and emerging markets; however, below investment-grade exposure is typically limited to not more than 25% of total assets.

Investment Process Summary

Key characteristics of our investment process include:

  • In-Depth Macroeconomic Fundamental Research and Analysis: Conduct independent analysis of countries, interest rates, and exchange rates using proprietary models and research. Research analysts specialize by geographic region and conduct frequent discussions with key local decision makers. The team’s research drives country weightings in addition to target ranges for duration, currency, and cash.
  • Long-Term Focused: Maintain a 12- to 18-month outlook.
  • Portfolio Construction: Build diversified portfolios seeking the most attractive risk-return profile utilizing yield curve and horizon analysis.
  • Disciplined Approach: Adhere to long-term strategy through changing market environments, supported by analysis and monitoring from Franklin’s internal risk management group.

OUR TEAM

Michael Hasenstab

Michael Hasenstab, Ph.D
Executive Vice President, Portfolio Manager, Chief Investment Officer
Templeton Global Macro
With firm since: 1995

Calvin Ho

Calvin Ho, Ph.D
Senior Vice President, Director of Research
Templeton Global Macro
With firm since: 2005

Christine Zhu

Christine Zhu
Vice President, Director of Portfolio Construction and Quantitative Analysis
Templeton Global Macro
With firm since: 2007