Templeton Global Bond Fund
Launched in February 1991, this fund is managed by Michael Hasenstab and Sonal Desai and invests principally in a portfolio of fixed or floating-rate debt securities and debt obligations issued by government or government-related issuers worldwide.
It is benchmarked against the JP Morgan Global Government Bond index and the team takes a diversified approach, with the portfolio currently holding approximately 249 positions. But with more than $38bn in assets, diversification is essential for this behemoth.
The largest individual geographical weighting is to South Korea at 13.11 per cent of the portfolio, while Mexico accounts for a further 10.82 per cent. In terms of currency, however, the portfolio has more than 64 per cent of the portfolio exposed to the US dollar.
Given the government bond focus, the average credit quality of the holdings are A-, while the average duration, according to the latest factsheet, is just 1.62 years.
What the judges say
The fund’s well-diversified global approach, with punchy currency views, was praised by the judges.
Club members
Aberdeen Global Select High Yield Bond
Legg Mason Brandywine Global Fixed Income
New Capital Total Return Bond
Threadneedle European Corporate Bond
In numbers
$38.5bn (£24bn)
Fund size
44.30%
Five-year actual return
1.4%
Ongoing charges
