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Back You are here: Home Funds Funds Update Bonds FTIF-Templeton Global Bond A Acc $ won MorningStar Award 2015

FTIF-Templeton Global Bond A Acc $ won MorningStar Award 2015

FTIF-Templeton Global Bond A Acc $, managed by Michael J. Hasenstab and Sonal Desai, with AUM of US$34,308.88 million won Morningstar's Best Global Bond Fund for the Year 2015.  The fund adopts unconstrained investment strategy.

According to Dr Hasenstab, they did 3 thing to the portfolio:

  1. focus on short portfolio duration
  2. long US dollar against short euro and long US dollar against short Japanese Yen
  3. select local-currencies and local-bond exposures in specific emerging markets such as Mexico

In 2014, the short duration positioning restrained absolute performance as yields generally shifted lower across developed markets.  However, select duration exposures in their strategies contributed to return, particularly from select emerging market position.

Further to that, the net-negative positions in the euro and the Japanese Yen generated positive returns as the euro and yen continued to depreciate over the course of the year.

For 2015, Dr Hasenstab believed that global financial markets should continue to benefit from growth in US, economic stabilization in China, lower oil prices and the abundance of global liquidity from the Bank of Japan (BOJ) and the European Central Bank (ECB).

It's core strategy is to position its portfolios to navigate a rising rate environment.  As such, it would continue to maintain short portfolio duration while aiming at a negative correlation with US Treasury returns.  They favour selective emerging market bond such as Korea and Mexico, where it believed that they have solid underlying fundamentals.  At the same time, they will deploy currency strategies to generate additional return for the portfolio.

Reference

Morgingstar, Nelly Poon, 2015-05-27, "2015 Winners Feature - Best Global Bond Fund - Templeton Global Bond A Acc $"