Franklin Templeton has expanded Michael Hasenstab’s offering with the launch of a local currency emerging market debt fund, Citywire Selector can reveal.
The new fund, which is Luxembourg domiciled, is designed to operate with a high-conviction, unconstrained approach to developing world bonds.
Hasenstab, who is CIO for Templeton Global Macro, will serve as co-lead on the fund alongside Sonal Desai, who is director of research for the same unit.
The fund aims to maximise total investment return, consisting of a combination of interest income, capital appreciation and currency gains. It will invest predominately in the local currency debt of EM issuers.
Commenting on the launch, Hasenstab said: ‘Local-currency emerging markets have offered some of the most compelling investment opportunities across global fixed income markets, in our view. We’ve recently been focusing on a select set of countries with domestically resilient economies and relatively higher yields.’
Hasenstab said there has been a substantial increase in issuance from emerging markets, particularly within local currency debt. He said growing domestic investor bases and strengthening local economies had aided such growth.
Templeton Global Macro had assets under management of over $124 billion as of December 31, 2017. The group consists of 21 portfolio managers, analysts and traders.