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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 20 specialists with an average of 14 years of fixed income experience. The team also leverages the expertise of over 170 fixed income professionals located in 15 countries (as of June 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 July 31, 2017

Country Weightings (%)
Brazil 9.83
Indonesia 9.24
South Korea 9.18
Mexico 8.65
India 8.07
Colombia 5.65
Argentina 5.39
Philippines 2.62
Ghana 1.78
Serbia 1.67
Currency Weightings (%)
US Dollar 29.68
Mexican Peso 22.77
Indian Rupee 10.47
Brazilian Real 9.83
Indonesian Rupiah 9.24
Colombian Peso 5.65
Argentine Peso 5.39
Philippine Peso 2.62
Ghanaian Cedi New 1.78
South African Rand 1.61
Credit Ratings3 (%)
AAA 0.10
AA 8.35
A 8.90
BBB 27.03
BB 11.43
B 8.20
NR 0.77
Cash & Cash Equivalents 35.22
Maturity4 (%)
0 to 1 Year 44.44
1 to 2 Years 2.47
2 to 3 Years 5.87
3 to 5 Years 15.29
5 to 7 Years 11.03
7 to 10 Years 12.54
Over 10 Years 8.36

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 5.78 A- 0.12
Credit Suisse High Yield Index 6.27 B+ 3.30
Bloomberg Barclays US Aggregate Index 2.51 AA 5.99
FTSE TMX Canada Universe Bond Index 2.41 AA- 7.28
JP Morgan Global Governement Bond Index 1.14 AA 7.75
Morningstar Global Fixed Income Category* 3.27 BBB N.A.

* Morningstar Global Fixed Income Category: Yield to Maturity data is as of 6/30/2017 and Average Credit Rating is as of 6/30/2017. 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 August 1, 2017 would have surpassed the Canadian and global fixed income peer groups and the Canadian equity market(as of July 31, 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 April 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