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.
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.
What is Franklin Templeton Global Aggregate Bd W Franklin Templeton Global Aggregate Bd W is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Franklin Templeton Global Aggregate Bd W has Assets Under Management of 178.45 M with a management fee of 0.54%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Franklin Templeton Global Aggregate Bd W has returned 3.21% in the last month. The previous three years have returned -3.25% annualised and 4.68% each year since inception, which is when the Franklin Templeton Global Aggregate Bd W first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Franklin Templeton Global Aggregate Bd W first started, the Sharpe ratio is 0.15 with an annualised volatility of 4.68%. The maximum drawdown of the investment product in the last 12 months is -3.69% and -15.72% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Franklin Templeton Global Aggregate Bd W has a 12-month excess return when compared to the Fixed Income - Bonds - Global Index of 0.32% and 0.04% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Franklin Templeton Global Aggregate Bd W has produced Alpha over the Fixed Income - Bonds - Global Index of 0.02% in the last 12 months and 0% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Bonds - Global Index category, you can click here for the Peer Investment Report.
What level of diversification will Franklin Templeton Global Aggregate Bd W provide?
Franklin Templeton Global Aggregate Bd W has a correlation coefficient of 0.92 and a beta of 1.03 when compared to the Fixed Income - Bonds - Global Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Franklin Templeton Global Aggregate Bd W and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Franklin Templeton Global Aggregate Bd W with the Global Aggregate Hdg Index?
For a full quantitative report on Franklin Templeton Global Aggregate Bd W compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the Franklin Templeton Global Aggregate Bd W to do my own analysis?
To sort and compare the Franklin Templeton Global Aggregate Bd W financial metrics, please refer to the table above.
Has the Franklin Templeton Global Aggregate Bd W been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Franklin Templeton Global Aggregate Bd W?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Franklin Templeton Global Aggregate Bd W. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 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
Performance Commentary - September 30, 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.
Performance Commentary - June 30, 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
Performance Commentary - September 30, 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.
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