(PUB) Investing 2016

489 / 708

7 Morningstar FundInvestor November 2016
Data through October 31, 2016 FINRA members: For internal or institutional use only.
Templeton Global Bond A Ticker
TPINX
Yield
2.6%
SEC Yield
3.79%
Total Assets
$42,138 mil
Mstar Category
World Bond
Benchmark 1: Citi WGBI NonUSD USD
Benchmark 2: BBgBarc US Agg Bond TR USD
Morningstar Analyst Rating 10-31-16
Œ
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
16.0
18.0
20.0
22.0
Historical Profile
Return
Risk
Rating
Above Avg
Above Avg
QQQQ
Above Avg
5 2 2 2 2 3 3 Investment Style
Fixed Income
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& & & & & ) & & * ( ) Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10-16 History
11.05 11.42 11.20 12.72 13.59 12.41 13.38 13.14 12.46 11.58 11.60 NAV
13.51 10.86 6.28 18.86 12.68 -2.37 15.81 2.22 1.58 -4.26 2.33 Total Return %
6.57 -0.60 -3.83 14.48 7.47 -7.55 14.30 6.78 4.25 1.29 -6.64 +/- Bmark 1
9.17 3.89 1.04 12.93 6.14 -10.22 11.59 4.24 -4.39 -4.81 -2.65 +/- Bmark 2
6.09 7.32 8.27 4.93 5.73 6.02 6.40 4.01 6.63 2.93 2.09 Income Return %
7.42 3.54 -1.99 13.94 6.95 -8.39 9.41 -1.79 -5.05 -7.18 0.24 Capital Return %
4 6 16 19 7 96 4 4 47 51 94 Total Rtn % Rank Cat
0.61 0.79 0.92 0.54 0.71 0.80 0.77 0.53 0.85 0.36 0.24 Income $
0.01 0.01 0.00 0.00 0.00 0.08 0.17 0.00 0.03 0.00 0.00 Capital Gains $
1.03 0.99 0.92 0.92 0.91 0.88 0.89 0.86 0.90 0.90 0.91 Expense Ratio %
3.59 4.17 4.28 4.99 4.40 3.76 3.30 2.84 2.83 2.68 3.29 Income Ratio %
39 44 30 66 12 26 42 42 35 43 . Turnover Rate %
2,352 4,902 6,215 12,912 20,779 22,930 25,903 26,588 22,017 17,420 . Net Assets $mil
Performance 10-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 7.03 -0.97 5.32 3.75 15.81
2013 1.35 -2.78 1.01 2.72 2.22
2014 0.62 2.68 0.00 -1.69 1.58
2015 0.08 -0.33 -6.15 2.27 -4.26
2016 0.03 -0.43 -1.33 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 3.57 8.14 4.50 3 10,357
6 Mo 2.48 4.47 0.97 29 10,248
1 Yr 1.20 -6.14 -3.17 94 10,120
3 Yr Avg 0.17 0.91 -3.31 68 10,052
5 Yr Avg 2.59 3.49 -0.31 30 11,363
10 Yr Avg 6.45 3.11 1.81 2 18,684
15 Yr Avg 8.41 3.42 3.81 2 33,571
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) -3.09 95 1.85 87
5 Yr (estimated) -0.33 67 1.99 93
10 Yr (estimated) 3.83 8 2.04 92
Potential Capital Gain Exposure: -13% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -3.10
3 Yr -1.27 Low +Avg Q
5 Yr 1.70 Avg High QQQ
10 Yr 5.99 High +Avg QQQQQ
Incept 7.26
Other Measures Standard Index Best Fit Index
Alpha 0.9 -3.0
Beta -0.21 0.42
R-Squared 1 44
Standard Deviation 6.31
Mean 0.17
Sharpe Ratio 0.04
Portfolio Analysis 09-30-16
Total Fixed Income: 119
Date of
Maturity Amount 000
Value
$000
%
Assets
Vereinigte Mexikanische 12-14-17 557,967 2,970,554 6.52
United Mexican States 8 12-13-18 489,083 2,677,228 5.88
Korea(Republic Of) 2% 03-10-21 1,456,387,020 1,364,215 3.00
Brazil Federative Rep 01-01-20 5,602 1,210,016 2.66
Brazil Federative Rep 1 01-01-21 4,010 1,176,220 2.58
Secretaria Tesouro Nacl 01-01-23 3,504 1,008,719 2.21
Malaysia (Govt Of) 4.01 09-15-17 3,711,240 910,055 2.00
Indonesia(Rep Of) 8.375 03-15-24 10,037,615,00
0
828,713 1.82
Indonesia(Rep Of) 8.375 09-15-26 9,734,168,000 814,848 1.79
Korea Treasury Bond 09-10-21 859,779,700 786,406 1.73
Brazil Federative Rep 1 01-01-17 2,422 738,534 1.62
India(Govt Of) 8.83% 11-25-23 37,754,900 624,981 1.37
Indonesia(Rep Of) 9.5% 07-15-23 6,667,220,000 582,379 1.28
Brazil Federative Rep 1 01-01-25 1,988 566,031 1.24
Indonesia(Rep Of) 8.25% 07-15-21 6,591,149,000 534,195 1.17
Poland(Rep Of) 01-25-17 2,005,988 525,199 1.15
Republic Of Colombia 7. 09-18-30 1,297,093,900 475,042 1.04
Poland(Rep Of) 01-25-21 1,721,975 444,330 0.98
Malaysia (Govt Of) 3.31 10-31-17 1,713,700 417,806 0.92
Portugal Rep 5.125% 10-15-24 413,230 410,722 0.90
Current Investment Style
Quality High Med Low
Duration
Ltd Mod Ext
1 figure provided by
fund
Avg Eff Duration1 0.0 Yrs
Avg Eff Maturity 3.2 Yrs
Avg Credit Quality BB
Avg Wtd Coupon 7.06%
Avg Wtd Price —
Coupon Range % of Bonds
0% PIK 8.0
0% to 4% 19.5
4% to 6% 8.1
6% to 8% 21.0
8% to 10% 40.1
More than 10% 3.2
Credit Analysis % bonds 09-30-16
AAA 0 BB 22
AA 10 B 1
A 33 Below B 6
BBB 28 Not Rated 0
Sector Breakdown % Assets
Government 63
Government Related 0
Corporate 1
Agency MBS 0
Non-Agency Residential MBS 0
Commercial MBS 0
Covered Bond 0
Asset Backed 0
Municipal 0
Cash & Equivalents 36
Other 0
Composition - Net
Cash 35.0 Bonds 65.3
Stocks -1.8 Other 1.5
Special Securities
Restricted/Illiquid Secs 5
Emerging-Markets Secs 61
Options/Futures/Warrants 0
Morningstar's Take by Karin Anderson 10-31-16
Templeton Global Bond is among the boldest entrants in
the world-bond Morningstar Category. Notably, its
emerging-markets-heavy profile has caused it to move in
sync with riskier assets and sport one of the highest
correlations to equities in the group. And its shorts on the
yen and euro are a significant drag when those currencies
strengthen against the U.S. dollar. However, manager
Michael Hasenstab's investment themes and shrewd
bond and currency selection have led to topnotch long-
term performance. His experience, a skilled and generally
stableanalystbench, the fund’sconsistentapproach,and
reasonable fees earn this fund a Morningstar Analyst
Rating of Gold.
The fund has almost no exposure to the debt of the
United States, eurozone, and Japan, which dominate
most peer funds’ portfolios. It also stands out for its
significant, and longtime, bets against the euro and yen
which Hasenstab believes are set to weaken on the back
of further quantitative easing. Instead, he has preferred
emerging-markets issues and currencies (roughly two
thirds of debt exposure and four fifths of currency
exposure as of August 2016) given what he views as
those countries' better fiscal prospects. Where the fund
looks less daring, however, is its interest-rate risk.
Hasenstab believes global inflation pressures could lead
to permanent loss of capital, which led him to further
reduce duration to 0.2 years as of August down from
roughly one year in late 2014.
Hasenstab has also shown a willingness to buy what
the rest of the market shuns: He loaded up on Irish bonds
in the depths of the 2011 eurozone crisis, and bought up
even shakier Hungarian debt. As Mexican and Brazilian
debt sold off in 2015's third quarter, Hasenstab took the
fund’s stakes in those countries and their currencies up
by several percentage points by the end of the year.
Moves like that have led to sharp, short-term sell-offs,
but over time, long-term-focused investors have been
amply rewarded. Since Hasenstab took over as lead
manager in December 2006 through September 2016,
the fund’s 6.1% annualized return ranked second out of
46 distinct peers.
Address: Templeton Income Trust Minimum Purchase: $1000 Add: — IRA: $250
Fort Lauderdale, FL 33394-3091 Min Auto Inv Plan: $50 Add: —
800-342-5236 Sales Fees: 4.25%L
Web Address: Management Fee: 0.65% mx./0.46% mn., 0.15%A
Inception: 09-18-86 Actual Fees: Mgt:0.48% Dist:0.25%
Advisor: Franklin Advisers Inc Expense Projections: 3Yr:$701 5Yr:$906 10Yr:$1496
Subadvisor: None Income Distribution: Monthly
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, email ß® Mutual Funds D