September, 2023
The Fund invests in a diversified portfolio of global fixed income securities.
A professionally managed active yet benchmark-aware portfolio seeking to outperform the Bloomberg Barclays Global Aggregate Bond Index (Hedged to AUD).
A disciplined research-driven approach seeking to add value through country and currency allocation, sector rotation, duration and yield curve management, as well as security selection.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Factsheet-FranklinTempletonGlobalAggregateBondFund-WClass-16934-W-FF-AU-en-AU.pdfJune, 2023
The Fund invests in a diversified portfolio of global fixed income securities.
A professionally managed active yet benchmark-aware portfolio seeking to outperform the Bloomberg Barclays Global Aggregate Bond Index (Hedged to AUD).
A disciplined research-driven approach seeking to add value through country and currency allocation, sector rotation, duration and yield curve management, as well as security selection
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/FranklinTempletonGlobalAggregateBondFund-WClass-16934-W-FF-AU-en-AU.pdfSeptember, 2022
Market Review:
• Global bonds posted significantly negative returns in the third quarter of 2022.
• US inflation maintained its upward trend over the quarter, causing the US Federal Reserve (Fed) to raise interest rates by 75 basis points (bps) in both July and September.
• The central bank revised its 2023 projections for growth down to 1.2%, and unemployment and core inflation up to 4.4% and 3.1%, respectively.
• Benchmark 10-year US Treasury yields rose sharply over the quarter, with two- and five-year US Treasury yields moving above 4% at the end of the period.
• The European Central Bank (ECB) raised rates by 50 bps in July, then, after inflation in the eurozone had reached 9.1% (year-on-year) in August, by another 75 bps in September.
• Economic growth for 2023 was also revised down to 0.9%, emphasising the difficult path the ECB must tread on monetary policy.
• In fixed income markets, benchmark European government bond yields rose considerably over the quarter.
• Investment-grade bonds fared slightly better than their government counterparts in the third quarter. High-yield corporate credits and emerging market issues also bettered the broader market.
Performance Review:
• The portfolio’s sector allocation and security selection contributed to relative performance, largely via selection in hard-currency emerging market debt and positioning in US mortgage-backed securities.
• The portfolio’s duration and yield-curve positioning enhanced relative performance, owing to underweight duration stances on UK, US, Australian, Japanese and eurozone bonds.
• The portfolio’s currency positioning had an additional positive impact on relative returns, particularly an underweight allocation to the euro.
• The portfolio’s local market allocation had a positive effect on relative performance, notably overweight positions in the outperforming Australian and Chinese markets.
June, 2021
Sector allocation and security selection contributed to relative performance, notably a non-benchmark exposure to US corporate high-yield industrial bonds, although this was diluted by the detrimental bearing of selection in this area.
• Positioning in US mortgage-backed securities, hard-currency emerging market debt and US corporate investment-grade industrial issues also added relative value.
• Currency positioning also added to relative returns, notably overweight allocations to the Mexican peso, South African rand and Indonesian rupiah, all of which appreciated against the Australian dollar.
• Duration and yield-curve positioning weighed on relative performance, held back largely by underweight duration stances on Australian and US bonds, as rates fell in these markets
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Franklin-Templeton-Global-Aggregate-Bond-Fund-Product-Profile-1.pdfSeptember, 2020
Selection in Italian sovereign issues, which are likely to be key beneficiaries of the recently announced rescue package by the EU, helped relative results. Selection in US corporate high-yield industrial bonds also helped, although a non-benchmark allocation slightly hindered relative returns. Local market allocation also added to relative returns, largely owing to underweight exposures to the underperforming markets of China, Japan and the UK, and overweight positions in the eurozone, Uruguayan and Indonesian markets, which bettered the benchmark. Overweight duration and yield-curve positioning in eurozone bonds had a further positive effect on relative results. Currency positioning weighed on relative performance, held back by overweight allocations to the Indonesian rupiah, US dollar, Japanese yen and Turkish lira, all of which weakened against the Australian dollar.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/Franklin-Templeton-Global-Aggregate-Bond-Fund-Product-Profile.pdfticker: FRT0025AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
Documents -> Product Literature -> Factsheet
The factsheet is out every month, but the commentary is only every quarter
manager_contact_details: Array
asset_class: Fixed Income
asset_category: Bonds - Global
peer_benchmark: Fixed Income - Bonds - Global Index
broad_market_index: Global Aggregate Hdg Index
structure: Managed Fund
fund_features:
Franklin Templeton Global Aggregate Bond Fund is an actively managed yet benchmark aware fund that invests primarily in government and corporate fixed and floating rate securities. The Fund seeks to maximize total investment return, consisting of a combination of interest income and capital appreciation. The investment objective of the Fund is to outperform the benchmark index over a full market cycle using a risk-controlled approach.
- Invests mainly in investment grade securities, but may invest up to 20% in non-investment grade.
- Adopts an actively managed yet benchmark-aware strategy.
- Hedged into Australian Dollars.
- Manager Address : Level 30, Aurora Place 88 Phillip Street
- Phone : +61 2 9250 2200
- Website : https://www.franklintempleton.com.au/adviser/
- Contact Email : FTClientServices@franklintempleton.com
- Contact Page : https://www.franklintempleton.com.au/adviser/our-company/contact-us