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.

STRATEGIES TO CONSIDER

An all-weather global bond fund that seeks attractive income generation and total return while guarding against downside risks.

Franklin Brandywine Global Income Optimiser Fund1

Balance income needs with the pursuit of total return based on the prevailing market environment.

Fund overview

A diversified portfolio of hard and local currency emerging market issuers

Franklin Emerging Market Debt Institutional Fund

An absolute return approach that will invest in countries or securities deemed to be attractive, irrespective of benchmark weights.

Fund overview

Construct portfolios that can provide uncorrelated returns when it’s needed most.

Legg Mason Western Asset Macro Opportunities Bond Fund1

An unconstrained global macro fixed income fund that targets attractive risk-adjusted returns.

Fund overview

Insights

Why Franklin Templeton?

For more than 50 years, we have been a leader and innovator in delivering fixed income solutions to investors around the globe. Our strong track record of navigating multiple market cycles, and with unmatched breadth and depth of global presence, uniquely adds value for our clients’ investment needs.

Grounded in Active Management icon

Grounded in Active Management

As one of the industry’s largest fixed income managers, we believe that fundamental research and robust risk management can help generate attractive returns and reduce volatility over the long term.

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Utilise Multiple Research Perspectives

We bring together four specialist investment managers with distinct styles to offer clients a full range of fixed income 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 300* specialised and seasoned investment professionals located in 16 markets, we manage over $660 billion* in fixed income assets and offer our clients a wide range of fixed income strategies spanning all major sectors, including benchmark-aware and unconstrained portfolios that seek to meet a diverse set of client needs.

Our Commitment to ESG icon

Our Commitment to ESG

Uncovering sustainability factors that help inform an issuer’s credit value and default risk is an integral part of our investment process.

*As at 31 December 2020.