Tuesday 12 December 2017

Don't panic, says fund manager Hasenstab

Dara Doyle

Michael Hasenstab, the fund manager at Franklin Templeton Investments (FTI) who has bet big on Irish bonds, said Greece's problems probably will not have a domino effect throughout the rest of the euro region.

"Although we expect volatility due to the news in Greece to persist, we believe the country is more likely to remain in the monetary union than not," he said in a note posted on the FTI website.

"As long as the ECB continues to commit its firewall to the situation, we do not see any reason why the issues in Greece should domino through Europe. Panic surrounding issues in the rest of the eurozone, such as in Spain, Italy and Ireland, also appears to us to be overstated.

''Growth in some parts of the zone has not been as bad as the overall picture, with Germany remaining a bright spot."

Performance at Franklin's Global Bond Fund bounced back last year after it trailed 91pc of rivals in 2011. The fund gained 16pc in 2012, better than nine out of 10 of its peers.

Franklin had $1.9bn of Irish bonds, maturing in October 2020, in the fund, making it the biggest single holding by value, filings show. (Bloomberg)

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