Templeton boosts Argentina Holdings in its $40 Billion Global Bond Fund

Argentinian President Mauricio Macri’s reform efforts have won approval from the world’s biggest emerging-market bond investor. Franklin Templeton Chief Investment Officer Michael Hasenstab boosted holdings in Argentina in the $40.4 billion Templeton Global Bond Fund that he runs to 4.5% in the first quarter. The investment has propelled Argentina to the sixth spot in the fund’s country holdings.

“This strong and broad-ranging reform effort represents a clear departure from the past, and sends a strong signal to international investors that the government is strongly committed to its new economic policy course,” Hasenstab said in the note published on Franklin Templeton’s website.

The move toward Argentina mirrors a similar bet Hasenstab made on Brazilian local-currency debt in the second half of 2015 amid a political shake-up that ushered in market-friendly reforms. Brazilian bonds have handed investors returns of 90% since the end of 2015, the most in emerging markets.