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Opportunities Abound

The global economy is expected to slow in 2024, yet we believe it will steer clear of a recession. Inflation is projected to ease, setting the stage for the US Federal Reserve to cut rates. Such a pivot will likely bring about a favourable environment for fixed income.

Within fixed income, we see a potential for compelling returns, especially as monetary policy shifts towards a more neutral, or possibly accommodative, stance if the economy exhibits further signs of cooling or recessionary pressures.

With more than 50 years of experience investing in fixed income, Franklin Templeton has a solid track record of achieving sustained growth and stability for our investors. 

Franklin Templeton’s Fixed Income Investment Capabilities

Unrivalled experience, unmatched global breadth and depth, and unparalleled innovation have put Franklin Templeton at the forefront of fixed income investing for more than 50 years. We understand client challenges and are here to help with long-term fixed income goals. We have a strong track record of navigating market cycles and creating value.

Strategies to address investor needs

  • Provide clients with a comprehensive range of investment strategies.
  • Multi-sector, unconstrained, country, and sector strategies.
  • Managed by our specialist investment managers.

Grounded in active management

  • We believe active management can help generate returns and reduce volatility over the long term.
  • Robust research guides our investment decisions to help deliver outcomes that meet client needs.

Global expertise

  • Over 50 years of experience successfully navigating fixed income markets and varying market environments.
  • We have multiple, well-defined investment processes rooted in fundamental research, discipline and experience.

Four Fixed Income teams with deep sector strength

Our independent specialist managers provide deep expertise and specialization within and across asset classes, investment styles, and geographies. 

Franklin Templeton Fixed Income

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Believes the best way to pursue alpha is by integrating top-down macroeconomic analysis with robust bottom-up fundamental sector research and quantitative science.

Multi-Sector > Multi-sector bond strategies typically aim to capture the income, return potential and diversification benefits offered by credit markets worldwide. This universe can include investment-grade and high-yield corporate credit, residential and commercial mortgage-backed securities, asset-backed securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.
Credit > Credit – Also known as corporate strategies, are issued by companies for a wide variety of purposes, including buying new equipment, investing in research and development and buying back their own stock, just to name a few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Based on their credit ratings, bonds can be either investment grade or non-investment grade.
Country > Country strategy: investment approach that focuses on constructing a portfolio of fixed income securities based on the analysis and evaluation of countries' economic and political factors. This strategy aims to capitalize on opportunities and manage risks associated with investing in bonds issued by different countries.

In a fixed income country strategy, investment decisions are primarily driven by the assessment of a country's macroeconomic indicators, monetary policy, fiscal stability, geopolitical factors, and other relevant factors that can influence the creditworthiness and performance of a country's debt securities.

Templeton Global Macro

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Research-intensive, fundamentals-based, high-conviction approach to capitalize on short-term inefficiencies and capture long-term value across global interest rate, currency, and credit markets.

Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.

Western Asset

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Known for team management and proprietary research, supported by robust risk management and a long-term fundamental value approach.

Multi-Sector > Multi-sector bond strategies typically aim to capture the income, return potential and diversification benefits offered by credit markets worldwide. This universe can include investment-grade and high-yield corporate credit, residential and commercial mortgage-backed securities, asset-backed securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.
Credit > Credit – Also known as corporate strategies, are issued by companies for a wide variety of purposes, including buying new equipment, investing in research and development and buying back their own stock, just to name a few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Based on their credit ratings, bonds can be either investment grade or non-investment grade.
Country > Country strategy: investment approach that focuses on constructing a portfolio of fixed income securities based on the analysis and evaluation of countries' economic and political factors. This strategy aims to capitalize on opportunities and manage risks associated with investing in bonds issued by different countries.

In a fixed income country strategy, investment decisions are primarily driven by the assessment of a country's macroeconomic indicators, monetary policy, fiscal stability, geopolitical factors, and other relevant factors that can influence the creditworthiness and performance of a country's debt securities.

 

Glossary

Credit: An alternative name for fixed income securities.
Alpha: A term used in investing to describe an investment strategy's ability to beat the market.
Duration: A measure of a fixed income portfolio or bond's price sensitivity to interest rate changes.
Bottom up investing: An investment approach that analyzes individual stocks while deemphasizing the significance of macroeconomic and market cycles.

Featured Fixed Income Solutions Across Market Cycles

FTGF Brandywine Global Income Optimiser Fund

The Fund is designed for investors seeking a strategic blend of income generation and capital growth potential. Its global scope offers a diversified income stream, reducing the reliance on any single market or currency, thereby mitigating risk.

FTGF Western Asset Asian Opportunities Fund

The Fund meticulously selects high-quality assets across the Asian fixed income landscape, tapping into opportunities that span from sovereign to corporate debt while managing risks associated with currency fluctuations and interest rate movements.

Franklin Floating Rate Fund PLC

Tailored for investors seeking a resilient income stream, particularly in fluctuating interest rate environments, the Fund focusses on floating rate instruments that offer competitive yields with a lower interest rate risk compared to fixed-rate bonds.

Franklin U.S. Government Fund

Key characteristics of the Fund include its diversified portfolio of US government obligations, including Treasury securities, agency bonds, and mortgage-backed securities guaranteed by the US government. It offers income with relatively low volatility, making it a solid foundation for any investment portfolio.

Franklin Strategic Income Fund

A pure fixed income portfolio that has broad exposure to domestic and international fixed income markets. Adopts active and flexible sector rotation within fixed income and duration positioning. 

Franklin Global Sukuk Fund

Franklin Templeton’s unique offering of Shariah-compliant fixed income portfolio. The Fund invests in over 90 sukuk securities (as of 31 Jan 2024), shortlisted from the global sukuk universe. 

Explore our full range of Fixed Income solutions

Fixed Income mutual funds

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