Vivek Ahuja, portfolio manager for the Templeton Global Macro team, believes fixed income portfolios with allocations too close to core indices become vulnerable to rising interest rates, especially in the current uncertain rate environment.
The Franklin Templeton Multisector Bond Fund fits this belief, adopting a benchmark unaware and multisector approach that typically invests in unconstrained fixed income strategies and in assets across multiple types of securities in order to generate risk-managed absolute returns.
In the accompanying article we learn that in the final quarter of 2016, the Templeton Global Macro team's active approach shone because of its contrarian view that US Treasury yields would begin to rise with or without action from the Federal Reserve.