For the past 12 months (to May 31), the fund was down -1.0%, matching the
FTSE/TMX Canada Universe Bond Index.
The fund’s goal is to provide strong risk-adjusted returns and a steady
income stream over a full market cycle. To do this, the management team,
headed by Tom O’Gorman, uses a process of top-down macro analysis and
bottom-up sector and security analysis.
The team’s top down analysis looks at global economic trends, interest rate
outlooks, growth and inflation expectations, central bank policies, and
sector fundamentals. Using the macro view, the analysis helps the team
determine the most attractive areas of the fixed-income universe, taking
into consideration duration positioning, yield curve positioning, sector,
country, and currency allocations.
The more granular bottom-up security analysis looks at individual issues,
weighing relative value, duration, company financials, as well as
fundamentals, management, and liquidity
The fund aims to deliver returns in excess of between 50 and 150 basis
points over the benchmark, with a Canadian-focused mandate that allows the
managers to invest across the Canadian fixed-income universe. Up to 25% of
the portfolio can be held in high-yield issues. While the fund has a
primarily Canadian focus, it can still invest up to 30% outside of Canada,
of which 10% of currency exposure can be unhedged.
As of April 30, the portfolio was allocated 62% to corporate bonds, 34% to
government issues. Given the flexibility of the fund’s mandate, its active
management style, and its well-diversified portfolio, this fund has the
potential to outperform in a volatile bond market.
Franklin Bissett Core Plus Bond Fund
Franklin Templeton Investments
Canadian Fixed Income
Top-down macro; bottom-up security selection
Thomas O’Gorman since July 2010; Darcy Briggs since May 2015
TML200 (Front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
Notes and Disclaimer
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amount of your investment in the fund will be returned to you. Fund values
change frequently and past performance may not be repeated. No guarantee of
performance is made or implied. This article is for information purposes
only and is not intended as personalized investment advice.