Templeton Global Bond’s Flexibility Sets it Apart
This strategy’s freewheeling style makes it a better fit in the nontraditional bond Morningstar Category.
On Sept. 30, 2019, we moved Templeton Global Bond (TGBAX), Templeton Global Total Return (TTRZX), and Templeton International Bond (FIBZX) to the nontraditional bond Morningstar Category. These benchmark-agnostic strategies employ bolder tactical calls on duration, currency, and emerging-markets exposures than most funds in the world bond category, which makes them a better fit for the nontraditional bond peer group.
The strategies had resided in the world bond category for more than a decade given their focus on non-U.S. sovereign bonds and small inclusion of non-U.S. corporates in the case of Templeton Global Total Return. Morningstar’s world bond category is home to predominantly investment-grade portfolios that invest 40% or more of their assets in bonds issued outside the United States, the most conservative of which focus on high-quality, developed-markets debt. Many of these are run in a nearly 100% unhedged fashion versus a global bond index such as the Bloomberg Barclays Global Aggregate Index, giving investors exposure to the underlying currencies.
Karin Anderson has a position in the following securities mentioned above: TGBAX. Find out about Morningstar’s editorial policies.