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Overview

Strategy Summary
  • Implements an unconstrained approach in seeking the most attractive global opportunities, including frontier markets and niche investments, creating a concentrated and contrarian portfolio, typically expressing 5-6 macro themes.
  • Leverages the established in-depth research and investment process of Templeton Global Macro, led by Michael Hasenstab, Ph.D.
  • Supported by Franklin Templeton’s global research, trading and risk management infrastructure that provides regional and local insight, extensive global trading capabilities and integrated, separate and insightful risk management, respectively.

 

We apply our rigorous fundamental research and macroeconomic analysis to niche investment opportunities across the broad global fixed income universe, notably including frontier markets and special situation investments in different parts of the capital structure. Our efforts are also supported by Franklin Templeton's entire global platform which provides local expertise, robust trading capabilities, and independent integrated risk management.
Michael Hasenstab, Ph.D.

Our Approach

Investment Philosophy

We believe that while various factors can cause markets to trade independently of their underlying macroeconomic fundamentals for periods of time, markets are efficient in the long-term and such imbalances should be self-correcting. We believe applying a fundamental, research-driven, unconstrained investment approach in seeking to exploit these imbalances can maximize long-term value potential.

Investment Process Summary

Templeton Global Macro uses a predominantly bottom-up, research-driven investment process that combines qualitative, country-specific and global macroeconomic analysis with quantitative tools.

Key characteristics of our investment process include:

Three “Lenses” of Global Research: In-depth country analysis, macro models, and local perspective from investment professionals around the world.

Sources of Potential Alpha: Six levers across Curve, Currency, and Credit, either long or short.

Portfolio Construction & Implementation: Portfolio managers work with quantitative analysts and traders to build a portfolio that seeks to isolate the most attractive investment opportunities. Inherent risks for the strategy are methodologically evaluated day to day.

Our Team

Michael Hasenstab, Ph.D.

Executive Vice President, Portfolio Manager, Chief Investment Officer Templeton Global Macro, With firm since: 1995

Calvin Ho

Senior Vice President, Portfolio Manager, Director of Research, With firm since: 2005

Christine Zhu

Senior Vice President, Portfolio Manager, Director of Portfolio Construction & Trading, With firm since: 2007

All investments involve risks, including loss of principal. 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 a portfolio which may result in significant volatility and cause the portfolio to participate in losses on an amount that exceeds the portfolio’s initial investment. A portfolio may realize losses when a counterparty fails to perform as promised. Foreign securities involve specials risks, including currency fluctuations and economic and political uncertainties. Investments in emerging markets, of which frontier markets is a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Investments in lower-rated bonds include higher risk of defaults and loss of principal. Changes in interest rates will affect the value of a portfolio. As the prices of bonds in a portfolio adjust to a rise in interest rates, the portfolio’s value may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. Please refer to a particular vehicle’s governing or offering documents for a more detailed description of risks.

The information contained on this webpage is not a complete description or analysis of every risk or material fact regarding the relevant markets or investment program. No representation is made as to the completeness or accuracy of information. Because market and economic conditions are subject to rapid change, opinions provided are only valid as of the date of the material and are subject to change without notice.

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Past performance does not guarantee future results.

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