Actively Solving
Income Challenges

As a fixed income leader, we provide
new solutions to persistent challenges

Policy responses to the COVID-19 crisis indicate interest rates could remain low for longer, extending an already challenging environment for yield investors.

At Franklin Templeton, we actively explore opportunities in every major fixed income sectorin pursuit of consistently strong, risk-adjusted returns. As a result of the recent integration of Legg Mason and Franklin Templeton, our combined suite of specialised investment managers offers diverse fixed income solutions and capabilities for institutional investors in this environment.

Hunt for Yield

Where will yields be found tomorrow?

As the global economy goes through an uneven recovery, the importance of fundamental analysis that is both skillful and thoughtful cannot be overemphasised. Active asset selection will be crucial. Recognising regional and sectoral disparities will be critical for identifying opportunities for uncorrelated sources of return.

Manage Volatility

Where will risk-taking make sense?

In times of turmoil, most investors become risk-averse, seeking safety over opportunity for higher returns. As we begin to see some elements of normalised economic growth with the spread of vaccines, taking measured risks can help to position portfolios effectively for tomorrow.

INCLUDE UNCORRELATED RETURNS

What does “contrarian” mean today?

During periods of extreme volatility, correlations between asset classes can converge. This phenomenon highlights the importance of constructing portfolios that can provide true diversification when it is needed most. Flexible diversification across global fixed income, foreign exchange, and derivative markets is essential for navigating changing interest rate and risk environments.

INTEGRATE SUSTAINABILITY

What value does ESG add to a fixed income portfolio?

Environmental, social, and governance (ESG) factors will play a major role in rebuilding the post-COVID world. Social cohesion and good governance have the power to accelerate a country’s post-crisis recovery, while the lack thereof can obstruct it. We expect ESG to be a defining attribute for global fixed income markets for years to come.

Featured Funds

GIC/Cash Alternative

Looking for a low-risk investment, offering higher yields and more upside potential than GICs and savings accounts?

Franklin Bissett Short Duration Bond Fund and Franklin Liberty Short Duration Bond ETF (FLSD)

These actively-managed, multi-sector fixed income solutions provide an attractive short duration option for investors concerned about volatility and the risk of rising interest rates.

Mutual Fund overview ETF overview

Stability

Looking for a time-tested, high-quality fixed income solution for the core part of your portfolio?

Franklin Bissett Core Plus Bond Fund and Franklin Liberty Core Plus Bond ETF (FLCP)

These actively-managed solutions are built on a strong foundation of high-quality Canadian fixed income securities. The funds also provide access to “plus” sectors for investors seeking higher yields and more portfolio stability.

Learn more

Diversification

Looking to tap into the higher yield and return potential in global fixed income markets?

Franklin Brandywine Global Income Optimiser

A global multisector fixed income fund with an unconstrained approach that seeks attractive income generation and total returns in all market conditions while guarding against downside risk. ESG considerations are deeply rooted in the investment selection process.

Learn more

Franklin Global Aggregate Bond Fund and Franklin Liberty Global Aggregate Bond ETF (CAD-Hedged) (FLGA)

These core global fixed income solutions invest in high-quality developed and emerging market bonds. By investing across regions and sectors, the funds provide access to a diverse range of opportunities beyond our borders.

Learn more

Income

Looking for attractive monthly income or tax-efficient cashflow?

Franklin U.S. Monthly Income Fund

A fund that is primarily focused on maximizing income and long-term capital appreciation. To meet these objectives, a flexible approach is used to adjust the portfolio’s allocation to stocks, bonds, and convertible securities.

Learn more

Franklin Quotential Diversified Income Portfolio

A conservative, actively-managed fund-of-funds solution offering “one-stop” diversification. Though the portfolio has a target allocation of 80% fixed income and 20% equities, the investment team can tilt the weightings to reduce risk and capitalize on opportunities.

For more tax-efficient distributions than domestic bonds and GICs, the Franklin Quotential Diversified Income Portfolio is also available in T Series1.

Fund overview

Insights

Why Franklin Templeton?

For more than 70 years, we have been delivering income solutions to investors around the globe. Our strong track record of navigating multiple market cycles, with breadth and depth of global presence, adds value for our clients’ investment needs.

Grounded in Active Management icon

Grounded in Active Management

We believe that fundamental research and robust risk management can help generate attractive returns and reduce volatility over the long term.

Utilise Multiple Research Perspectives icon

Utilise Multiple Research Perspectives

We bring together specialist investment managers with distinct styles to offer clients a full range of capabilities. Each manager follows a well-defined investment process that is rooted in the fundamental research, discipline, rigour and experience gained over decades of successfully navigating global markets and varying market environments.

Strategies to Address Client Needs icon

Strategies to Address Client Needs

With over 1,200 investment professionals located in 34 markets, we manage over 1.5 trillion USD* in assets and offer our clients a wide range of investment strategies spanning all major sectors.

Our Commitment to ESG icon

Our Commitment to ESG

We embed ESG best practices and analytics in our investment processes, enhancing our traditional financial analysis—to open new investment opportunities, help mitigate risk and seek to enhance long-term returns.

*As of 30 June 2020.