Unconstrained Income Opportunities

Templeton Global Bond Fund

The U.S. Federal Reserve started raising interest rates in December 2016. With more rate hikes in the forecast, many long duration fixed income portfolios could be exposed to significant interest rate risks. Templeton Global Bond Fund’s unconstrained approach and low-duration holdings offer a degree of protection in a rising-rate environment.

An Unconstrained Approach

Flexible search for opportunities arising from interest rates, currencies and sovereign credit anywhere around the globe.

Impressive Portfolio Yield without Undue Risk

High yield to maturity combined with investment-grade portfolio rating and low interest rate risk.

Consistent Performance and High Payout

Higher long-term returns and more generous payouts than domestic and global peers.

An Unconstrained Approach

Since 1988 Templeton Global Bond Fund has scoured the globe for the best fixed income opportunities in order to meet its goal of providing high current income with capital appreciation. The fund invests predominantly in the bonds of governments and government agencies located around the world, with a focus on investment-grade securities.

Flexibility Across Borders

The flexibility to invest in any country or currency, including emerging markets, allows the investment team to capitalize on macroeconomic trends and opportunities in interest rates, currencies and sovereign credit anywhere around the globe.

On-the-Ground Expertise

The fund is managed by Templeton Global Macro, a worldwide team of 21 specialists with an average of 15 years of fixed income experience. The team also leverages the expertise of over 180 fixed income professionals located in 15 countries (as of June 30, 2018).

We strive to identify economic imbalances that may lead to opportunities without any benchmark constraints. Each security selection considers three potential sources of return:

Our Flexible, Go Anywhere Mandate Produces a Diversified Portfolio1

As of June 30, 2018

Country Weightings (%)
South Korea 9.73
Mexico 9.52
India 9.35
United States 9.10
Indonesia 8.83
Brazil 8.35
Colombia 5.45
Argentina 4.28
Philippines 2.75
Ghana 1.90
Currency Weightings (%)
US Dollar 33.01
Mexican Peso 19.91
Indian Rupee 11.95
Brazilian Real 10.95
Indonesian Rupiah 8.83
Colombian Peso 5.45
Argentine Peso 4.28
Philippine Peso 2.75
Ghanaian Cedi New 1.90
South Korean Won 0.62
Credit Ratings2 (%)
AAA 8.52
AA 9.84
A 9.98
BBB 26.67
BB 8.44
B 6.93
Cash & Cash Equivalents 29.62
Maturity3 (%)
0 to 1 Year 48.09
1 to 2 Years 4.79
2 to 3 Years 9.33
3 to 5 Years 10.31
5 to 7 Years 13.48
7 to 10 Years 8.84
Over 10 Years 5.16

Impressive Portfolio Yield without Undue Risk

A combination of generous yield to maturity comparable to high yield bonds, investment-grade average rating, low interest rate risk and low-to-medium fund risk rating.

Portfolio CharacteristicsYield to Maturity (%)4Average Credit Rating5Duration (Years)6
Templeton Global Bond Fund 5.98 A -0.46
Credit Suisse High Yield Index 6.86 B+ 3.87
Bloomberg Barclays US Aggregate Index 3.29 AA 6.01
FTSE TMX Canada Universe Bond Index 2.67 AA- 7.58
JP Morgan Global Governement Bond Index 1.51 AA 7.97
Morningstar Global Fixed Income Category 3.68 A N/A

*Morningstar Global Fixed Income Category: This is the most recent information available for each data point.

Performance and Payout

A $10,000 investment in Templeton Global Bond Fund – Series F on October 1, 2007 would have surpassed the Canadian and global fixed income peer groups and the Canadian equity market(as of June 30, 2018).7

  • Templeton Global Bond Fund-Series F
  • Canadian Equities
  • Canadian Fixed Income
  • Global Fixed Income

… with more generous distribution yields8

  • Templeton Global Bond Fund-Series F
  • Canadian Fixed Income
  • Global Fixed Income

*TTM = 12-Month Distribution Rate

Annualized Performance as of JUNE 30, 20189Start DateYTD1 Yr3 Yrs5 Yrs10 YrsSince Inception
Templeton Global Bond Fund, Series A 15-Jul-88 0.48 -2.70 0.96 2.19 4.95 5.08
Templeton Global Bond Fund, Series F 18-Jun-01 0.76 -2.05 1.55 2.91 5.62 5.31
Morningstar Global Fixed Income Category N.A. 0.22 -0.07 1.95 3.35 4.03 N.A.