Which Fund has Biggest Ukraine Bet?

One fund company in particular has bet big on Ukraine in 2013: Franklin Templeton. What potential impact have recent events had on Templeton’s bond funds?

Francesco Paganelli 13 March, 2014 | 4:45PM

One fund company in particular has bet big on Ukraine in 2013: Franklin Templeton. In light of the recent events, Morningstar’s Fund Research team has therefore examined the potential impact on Templeton’s bond funds covered by the Morningstar Analyst Rating.

In the course of 2013, the US asset manager has increased its total exposure towards Ukraine up to about $5 billion. The company would thus be one of the largest creditors of the central government; some analysts have calculated that Franklin Templeton holds about one third of the total USD denominated public debt of Ukraine.

Is There Room for Worry?

According to Morningstar’s analysts, although they are important figures , they lose significance when compared to Franklin Templeton’s total AUM; in particular, their Global Bond team alone is responsible for approximately $200 billion in assets.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Templeton Global Bond A(acc)USD28.55 USD-0.61
Templeton Global Total Ret Bd A Inc1.21 GBP-1.97

About Author

Francesco Paganelli  is a Fund Analyst for Morningstar in Italy

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