MONEY MASTERS

Franklin Templeton Multisector Bond Fund

Dr. Sonal Desai. senior vice president, portfolio manager Franklin Templeton

The investment team that manages the Franklin Templeton Multisector Bond Fund believes one of the biggest risks facing today’s bond investors is that fixed income around the world has been highly distorted by central bank actions. Global fixed income yields are not truly reflecting the underlying fundamentals of country debt levels which can lead to investors holding overvalued assets. The team positions this strategy to avoid falling into ‘bubbles’ and utilises its unconstrained nature to seek out undervalued assets.

 

What you'll learn /

The Franklin Templeton Multisector Bond Fund Money Masters course with Sonal Desai will give you insights into:

The biggest challenges facing today’s bond investors
The advantages of investing in global bond and currency markets
The opportunities that emerge through an unconstrained investment philosophy
How the Franklin Templeton investment team sources alpha in three distinct areas: curve, currency, and credit

About the expert /

Dr. Sonal Desai /

senior vice president, portfolio manager Franklin Templeton


Sonal Desai, Ph.D., is a senior vice president and director of research for Templeton Global Macro. Dr. Desai is a portfolio manager for a number of funds, including Templeton Global Bond Fund and Templeton Global Total Return Fund. Templeton Global Macro offers global, unconstrained investment strategies through a variety of investment vehicles ranging from retail mutual funds to unregistered, privately offered hedge funds.

Dr. Desai is responsible for shaping the team's research agenda of in-depth global macroeconomic analysis covering thematic topics, regional and country analysis, and interest rate, currency and sovereign credit market outlooks. This includes facilitating broader research efforts leveraging Franklin Templeton's local fixed income investment professionals across global markets.

Dr. Desai joined Franklin Templeton Investments in 2009 from Thames River Capital in London. She started her career in 1994 as an assistant professor of economics at the University of Pittsburgh, and then worked for over six years at the International Monetary Fund in Washington, DC. Following this, she joined the private financial sector and worked for about five years as director and senior economist for Dresdner Kleinwort Wasserstein in London.

Dr. Desai holds a Ph.D. in economics from Northwestern University and a B.A. in economics from Delhi University. She is part of the Templeton Global Bond Fund portfolio management team named Morningstar's Fixed Income Manager of the Year in Canada in 2013.

  • CPD hours1
  • Knowledge AreaManaged Investments
  • TypeMoney Masters
  • PriceFree
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Outline of the course /

OVERVIEW

Fund Philosophy

Fundamentally driven, truly unconstrained, and a medium-term investment horizon are all key components of the Franklin Templeton Multisector Bond Fund philosophy. The fund seeks out opportunities in bond and currency markets without falling prey to market fads.

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01.

Unique Aspects of the Fund

The Franklin Templeton Multisector Bond Fund searches for the best opportunities and ideas worldwide, not just restricted to developed markets. With so many options, those investments that do make it into the fund are backed up by copious amounts of research and conviction, with thorough risk analysis to ensure the right level of risk receives the right level of reward.

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02.

Role in Portfolio

The Franklin Templeton Multisector Bond Fund can provide diversification to portfolios, a proverbial counterweight to core equity and traditional fixed income portfolios. Given the fund’s presence in a variety of markets and countries, it aims to perform well during different phases of the market cycle.

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03.
STRUCTURES AND OBJECTIVES

Rules and Returns

Curve, currency and credit. These are what the team behind the Franklin Templeton Multisector Bond Fund dubs ‘the three C’s’. The fund actively aims to generate alpha from these three distinct sources either via the curve risk, credit risk, or currency, where they see pockets of extreme undervaluation. Holding positions in three different areas allows the fund to perform well over the long-term.

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04.
BEST SUITED FOR

Key Considerations for Investors

The Franklin Templeton Multisector Bond Fund sees great value in its unconstrained nature, as it can seek out value and invest wherever it sees opportunity. It’s not restricted to the countries and sizes which exist in underlying indices. The strategy has a medium-term investment horizon and offers enhanced diversification to core investment strategies in traditional equity and fixed income portfolios. This allows for a truly contrarian philosophy, one that seeks out value over fads.

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05.

Test yourself /