This month’s fund in focus is the Franklin Templeton Global Bond Fund. The Fund has a very wide investment brief and achieves its returns by taking advantage of value opportunities in global bond markets, taking positions on currencies and focusing on income. This strategy stood to it over 2022 when it was one of the few bond funds to show a gain over the course of the year (see chart below). The fund mainly invests in debt securities of any quality issued by governments and government related entities located in any developed or emerging markets.
Points to Note:
- The fund sources excess returns from areas of greater potential upside. This includes specific currencies that they believe are undervalued and can offer downside risk management from a weaker USD.
- The fund is classified as an Article 8 Fund with the fund excluding countries and issuers that are subject to international economic sanctions and also excluding government bonds of the poorest performing countries in ESG.
- The funds unconstrained approach offers a strong diversification benefit due to low to negative correlations with major asset classes, in turn helping reduce overall volatility in the context of portfolio allocation
- The fund pays out an annual distribution with the current yield at 6.1%
As always, you should only consider the investment views contained in this Franklin Templeton Global Bond Fund update n the context of your own attitude to risk and how such choices might impact your Asset Allocation model. Should you wish to discuss your investment portfolio, please contact Harvest Financial Services on 01 2375500 or email justask@harvestfinancial.ie.