Templeton Asian Bond

The strategy aims to maximize total investment return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in a portfolio of fixed and floating rate debt securities and debt obligations of primarily government and government-related issuers and may allocate to corporate entities located throughout Asia.

OVERVIEW

STRATEGY SUMMARY

  • Seeks to deliver alpha by identifying economic imbalances and perceived mispricing in the Asian sovereign bond and currency markets.
  • Invests across three distinct potential sources of alpha – yield curve, currency, positions 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

  • JPM GBI-EM Broad Diversified Asia Index

COMPOSITE PROFILE

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

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“Emerging market bonds offer the potential to benefit from different interest rate and currency dynamics than developed market bonds, and offer potentially higher yields as well.” – Michael Hasenstab, Ph.D., Portfolio Manager

OUR APPROACH

Investment Philosophy

We believe that applying a fundamental, research-driven approach focused on identifying potential sources of total return (current income and capital appreciation) throughout Asia and seeking to capitalize on regional interest rates and currency trends provides the strategy with the best potential for attractive risk-adjusted returns. The portfolio is run independently of its benchmark, allowing the manager to hold only the positions it believes have the best potential to maximize risk-adjusted returns. This is a high alpha-seeking regional strategy that may include allocations to all types of fixed income instruments in both developed and emerging markets.

Investment Process Summary

Multiple Research Lenses Can Lead to High-Conviction Opportunities

The above chart is for illustrative and discussion purposes only. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions.

The Regional Fixed Income is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton.

OUR TEAM

Michael Hasenstab

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



Vivek Ahuja

Vivek Ahuja
Portfolio Manager,
Research Analyst Templeton Global Macro
With firm since: 2006