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Overview

The strategy invests primarily in developing or emerging market local currency government, government-related and corporate debt securities and related derivatives. The portfolio managers seek to identify and capitalize on economic imbalances and perceived mispricing in emerging markets local currency bonds.

Key Features

Unconstrained World View

Using a benchmark-agnostic approach, the portfolio managers hold only the positions they believe have the best potential to maximize risk-adjusted returns

Three Distinct Sources of Alpha

Portfolio managers actively allocate across interest rates, currencies and credit to take advantage of different economic cycles around the world and diversify the portfolio

Truly Global Research Platform

The investment team is one of the largest, most well-established in the global fixed income arena, and is able to leverage on-the-ground research by additional Franklin Templeton fixed income investment professionals around the world

Strategy Profile

Read more about our investment approach and management team

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Important Information

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. The value of shares and income received can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency and exchange-rate fluctuations. Reduced liquidity may affect the ability to sell assets and have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy. Investments may also be exposed to operational risks, being the risk that operational processes may fail, resulting in losses as well as other risks (that can be outside of their control).