Managed by Dr. Michael Hasenstab, Senior Vice President, Franklin Templeton Fixed Income Group, the Templeton Global Bond Fund primarily invests in the debt obligations and securities of government or government-related issuers worldwide. The Fund aims to provide superior riskadjusted returns by identifying sources of high current income worldwide, while capitalising on global currency trends.
The Templeton Global Bond Fund was launched in February 1991 and has grown to $9.6 billion3 in size. This highly rated strategy boasts a AA/V5 Standard and Poors Fund Management rating4 and a five star ranking from Morningstar5. In addition, the Fund possesses a successful long-term track record, returning 236.39%6 since its inception to 30 September 2008, versus 217.20%6 for the JP Morgan Global Government Bond Index and 160.13%6 for the Morningstar Fixed Income Global USD sector average.
Michael Hasenstab is based in California, U.S.A. and specialises in global macro economic analysis with a focus on currency, interest rates and sovereign credit analysis of developed and emerging markets countries. He is a member of the Franklin Templeton Fixed Income Group which consists of over 100 investment professionals worldwide. The group focuses on broad fixed income expertise of major fixed income sectors including global sovereign, global credit, mortgages, asset-backed securities, municipals, global high yield and emerging market debt.
Commenting on current markets, Dr. Hasenstab believes that even in the difficult current environment global bonds can add alpha and enhance diversification. He said: âThe slowdown in global growth can be quite positive for bond markets. As growth slows in many countries, interest rates will likely decline as the balance of risks for monetary policy makers continues to shift towards growth away from inflation. Many markets have yet to price in this likely response, and it is in those countries that also have strong fundamentals where we are seeing the best duration opportunitiesâ.
He concluded: âIn addition, many developing countries are in stronger positions to confront this slowdown than in previous periods as they have accumulated substantial reserves and are running healthy fiscal and external balances. In those countries where the de-leveraging process is likely to have a smaller impact on the real economy, particularly in Asia, we believe stronger relative growth will continue to attract capital. This should benefit their currencies relative to those of economies where the slowdown is likely to be worst.â
Franklin Templeton is one of three fund managers whose funds are available on Cofunds. Since announcing the inclusion of selected Luxembourg-domiciled SICAVs on its platform in February 2007, Cofunds has added a total of nine Franklin Templeton funds for UK investors.