Total Return Approach
Investments are not constrained by a benchmark; only investing in countries and securities that are attractive.
The strategy seeks a total return by investing in investment grade debt obligations of sovereign, quasi-sovereign and corporate issuers located in emerging market countries.
Total Return Approach
Investments are not constrained by a benchmark; only investing in countries and securities that are attractive.
Broad Opportunity Set
Investment universe includes sovereign, quasi-sovereign and corporate issuers. The strategy invests in debt that is denominated in hard currencies as well as local currencies.
Experienced Team
Investing in asset class since 1996.
The investment team believes that inefficiencies in emerging market debt markets result from investor segmentation, illiquidity, and the complexity of many emerging market debt securities. The strategy seeks to exploit these inefficiencies through an unconstrained investment approach with diversification across countries, sectors, currencies, and issuers.
Our investment process is dynamic and is subject to change without notice due to various factors, including but not limited to market and economic conditions.
Country Allocation
Country selection is the most important decision in structuring our emerging market debt portfolios. The first step in this process is fundamental country research. We believe thorough analysis and a large investable universe offer investment opportunities.
Currency Allocation
Following country selection, the investment process focuses on whether to take exposure in the form of hard currency or local currency instruments. Not all emerging market countries issue hard currency debt, so the inclusion of local currency instruments results in a significantly expanded investment universe.
Issuer Selection
The last stage of the investment process involves relative-value analysis to select the most attractive securities within a particular country denominated in the chosen currency. The primary decisions at this stage are selecting sovereign, quasi-sovereign, or corporate issuers, and choosing the appropriate maturity and coupon structure.
Investment Team
Day-to-day decision making on the strategy is led by Nicholas Hardingham, Stephanie Ouwendijk and Robert Nelson, highly experienced portfolio managers. The team draws primarily on the resources of the research team and other parts of Franklin Templeton’s fixed income group, as well as the emerging markets equity platform based around the world.

Portfolio Manager
Industry since 1999

Portfolio Manager
Industry since 2007

Portfolio Manager
Industry since 2000
Important Legal 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. Performance may also be affected by currency fluctuations. Reduced liquidity may 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.
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