13 MARCH 2026
Quick Thoughts: Dire straits—Hormuz risk isn’t just an oil story
Franklin Templeton Institute’s Stephen Dover explores the ripple effects of the closure of the Strait of Hormuz.
As a fixed income leader, we provide new solutions to persistent challenges
Policy response to the COVID-19 crisis seems set to keep interest rates lower for even longer. This is a challenging environment for yield-seeking investors. Mapping every dimension of fixed income and applying quantitative science enables us to navigate today’s markets and stay on top of their trends.
At Franklin Templeton, we actively explore opportunities in every major fixed income sector, seeking consistently strong, risk-adjusted returns. As a result of the recent integration of Legg Mason and Franklin Templeton, our combined suite of specialised investment managers offers an unparalleled diversity of fixed income solutions and capabilities to meet every client need.
HUNT FOR YIELD
Where can yields be found today?
As the global economy goes through an uneven recovery, the importance of thoughtful, skilled fundamental analysis cannot be emphasised enough. Active asset selection will be crucial. Recognising regional and sectoral disparities can help identify and act on opportunities for multiple sources of return.
MANAGE VOLATILITY
Where does risk-taking make sense today?
In times of turmoil, most investors become risk-averse, seeking safety over opportunity for higher returns. As we begin to see some elements of normalised economic growth with the breakthroughs on the vaccine front, taking measured risks can help to effectively position portfolios.
SEEK UNCORRELATED RETURNS
What does “contrarian” mean today?
During periods of extreme volatility, correlations between asset classes converge. It is more important than ever to construct portfolios that can provide true diversification when it is needed most. Flexible diversification across global fixed income, foreign exchange, and derivative markets is essential to fare well in changing interest rate and risk environments.
INTEGRATE SUSTAINABILITY
Which value does ESG add to a fixed income portfolio?
Environmental, social, and governance (ESG) factors will play a major role in rebuilding the post-COVID world. Social cohesion and good governance have the power to accelerate a country’s post-crisis recovery, while the lack thereof can obstruct it. We expect ESG to be a defining attribute for global fixed income markets for years to come.
Featured Funds
Franklin Euro Government Bond Fund1
The Fund's investment objective is to maximise total returns with a combination of interest income and capital appreciation by investing primarily in Euro denominated fixed-income securities issued by government and government-related issuers located throughout the European Monetary Union ("EMU").
Franklin U.S. Government Fund1
The Fund aims to achieve income and safety of principal by investing primarily in debt obligations issued or guaranteed by the United States of America government and its agencies.
Franklin U.S. Dollar Short-Term Money Market Fund1
The Fund aims to provide shareholders with the opportunity to invest in a portfolio of high quality, Short-Term securities, consisting principally of transferable securities and money market instruments of governments and eligible securities of companies of any nation worldwide, primarily USD denominated, or hedged back into USD to avoid any currency exposure.
Franklin Global Sukuk Fund1
To maximise, consistent with prudent investment management, total investment return, consisting of a combination of profit income and capital appreciation.
Templeton Global Bond Fund1
The Fund aims to maximize total investment return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in a portfolio of fixed or floating rate debt securities and debt obligations issued by government or government- related issuers worldwide.
Templeton Global Total Return Fund1
The Fund aims to maximise total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and floating rate debt securities and debt obligations issued by government and government-related issuers or corporate entities worldwide. The Fund may invest in investment grade and non-investment grade debt securities. The Fund may also use various currency-related and other transactions involving derivative instruments.
1. A sub-fund of Franklin Templeton Investment Funds, a Luxembourg-registered SICAV (“FTIF”).
Insights
Fixed Income
We offer investors a wide range of fixed income strategies that span all major sectors and include core plus, credit, unconstrained, emerging markets, municipals and specialty, to suite your needs.
