Fixed Income

Franklin Templeton is a global leader in fixed income with depth and breadth of expertise in all major sectors of the fixed income market. These include domestic bonds, global bonds, emerging market debt, high-yield and investment-grade corporate bonds, mortgage-backed securities, municipal bonds and bank loans. Each sector is covered by a dedicated team, enabling us to comprehensively examine the market and uncover unique opportunities.

Our Approach

More than 170 dedicated fixed income investment professionals utilize multiple sources of expertise:1

TOP-DOWN

Fixed Income Policy Committee and multi-sector strategists seek to capitalize on global economic trends:

  • Sector rotation
  • Country duration
  • Yield curve
  • Currency
  • Volatility

BOTTOM-UP

Dedicated sector teams strive to add value through security selection and sector-specific insights:

  • Corporate credit
  • Global Fixed Income
  • Mortgages
  • Bank Loans
  • Municipals

QUANTITATIVE

Dedicated team builds proprietary risk models to identify potential alpha opportunities:

  1. Active risk analysis
  2. Portfolio optimization and expected return
  3. Relative value analysis
  4. Derivatives

1. Investment professionals include portfolio managers, analysts and traders (as of September 30, 2017).

FRANKLIN TEMPLETON FIXED INCOME GROUP®

The Franklin Templeton Fixed Income Group is an integrated global fixed income platform comprising over 100 investment professionals located in offices around the world. The group launched its first fixed income portfolio more than 40 years ago and has been managing money for the Institutional market for more than 30 years.

A global fixed income leader, the group has depth and breadth of expertise in all major sectors of the fixed income market, including investment grade and high yield corporate bonds, mortgage- and asset-backed securities, global sovereign and emerging market debt, municipal securities and bank loans. Each sector is covered by a dedicated team, enabling us to comprehensively examine the market and uncover unique opportunities. Our global perspective is enhanced by dedicated local teams in many nations and a quantitative research team that participates in research and portfolio reviews. This global framework, significant bottom-up resources and integrated quantitative group enable us to build portfolios with a disciplined, risk-controlled approach.

  • Top-Down Analysis. Senior leaders set the outlook for markets, sectors and currencies based on analysis of global economy, notably trends and fixed income market cycles
  • Bottom-Up Research. Dedicated sector specialists undertake detailed, proprietary research to focus on finding the relative value opportunities within their field.
  • Quantitative Analysis/Risk Management. Understanding risk is crucial to the investment management process. A dedicated team continually evaluates risk over economic and credit cycles.

Franklin Templeton Fixed Income Group Snapshot:

Established

1970

Style

Fixed Income

Capabilities

Single and Multi-Sector Strategies

Strengths

  • Dedicated fixed income professionals located around the world
  • Disciplined risk-control and risk management measures
  • Pursuit of diversified sources of potential alpha across securities, sectors and global markets

TEMPLETON GLOBAL MACRO

Templeton Global Macro has been a pioneer in unconstrained global fixed income investing for almost three decades, beginning with the launch of its flagship Templeton Global Bond Strategy in 1986. The team conducts in-depth global macroeconomic analysis covering thematic topics, regional and country analysis, and interest rate, currency and sovereign credit market outlooks.

The team applies a fundamental, research-driven investment approach that focuses on identifying potential sources of high current income worldwide and seeks to capitalize on duration, currency, and sovereign credit opportunities to provide the best potential for solid risk-adjusted returns.

Templeton Global Macro follows a well-defined research process characterized by a regular review of investment opportunities. This process features forums scheduled throughout the month to share information on potential sources of alpha generation and to review current holdings and potential risk factors. Team members meet daily to discuss ongoing market activity, as well as political and macroeconomic events.

Templeton Global Macro Snapshot:

Established

1986

Style

Global Unconstrained Fixed Income

Capabilities

Unconstrained Fixed Income, Currency, Global Macro

Strengths

  • Well-established and proven investment philosophy and process
  • Flexibility to express positive or negative views on global currencies and duration
  • Global investment platform spanning the Americas, Europe and Asia allows for specialized expertise and a truly global perspective