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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.

INVESTMENT EXCELLENCE, RECOGNIZED


MORNINGSTAR RATED FUND™ 1
Series F

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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 13 years of fixed income experience. The team also leverages the expertise of over 170 fixed income professionals located in 15 countries (as of September 30, 2017).

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 Portfolio2

As of September 30, 2017

Country Weightings (%)
Brazil 9.92
Indonesia 9.55
South Korea 9.41
Mexico 9.04
India 9.41
Colombia 5.75
Argentina 5.72
Philippines 2.67
Ghana 1.93
Serbia 1.69
Currency Weightings (%)
US Dollar 26.71
Mexican Peso 23.37
Indian Rupee 11.86
Brazilian Real 9.92
Indonesian Rupiah 9.55
Colombian Peso 5.75
Argentine Peso 5.72
Philippine Peso 2.67
Ghanaian Cedi New 1.93
South African Rand 1.61
Credit Ratings3 (%)
AAA 0.10
AA 9.19
A 9.30
BBB 28.86
BB 11.56
B 8.13
NR 0.77
Cash & Cash Equivalents 32.85
Maturity4 (%)
0 to 1 Year 43.04
1 to 2 Years 1.72
2 to 3 Years 6.25
3 to 5 Years 17.67
5 to 7 Years 10.33
7 to 10 Years 12.60
Over 10 Years 8.40

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 (%)5Average Credit Rating6Duration (Years)7
Templeton Global Bond Fund 5.89 A- 0.09
Credit Suisse High Yield Index 6.44 B+ 3.43
Bloomberg Barclays US Aggregate Index 2.55 AA 5.97
FTSE TMX Canada Universe Bond Index 2.51 AA- 7.29
JP Morgan Global Governement Bond Index 1.18 AA 7.78
Morningstar Global Fixed Income Category* 3.47 BBB N.A.

* Morningstar Global Fixed Income Category: Yield to Maturity data is as of 9/30/2017 and Average Credit Rating is as of 9/30/2017. 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 September 30, 2017).9

 

Templeton Global Bond Fund-Series F

 

Canadian Equities

 

Canadian Fixed Income

 

Global Fixed Income

… with more generous distribution yields10

 

Templeton Global Bond Fund-Series F

 

Canadian Fixed Income

 

Global Fixed Income

TTM = 12-Month Distribution Rate

Annualized Performance as of September 30, 201711Start Date1 Yr3 Yrs5 Yrs10 YrsSince Inception
Templeton Global Bond Fund, Series A 15-Jul-88 2.17 1.69 3.09 5.15 5.25
Templeton Global Bond Fund, Series F 18-Jun-01 2.69 2.40 3.83 5.79 5.61
Morningstar Global Fixed Income Category N.A. -0.63 3.30 3.62 4.46 N.A.

Key Materials