Current clients of MASECO (and those clients who were with us when we were at Citigroup) will by now know that one of our longest held positions is the Templeton Global Bond fund managed by Michael Hasenstab. The fund is one of the ‘active’ investments we make because we dislike the composition of the benchmark that is the alternative way of getting exposure to ‘foreign’ bonds. As we discuss in our Investment Philosophy meetings and from time to time in our blogs, we dislike the global bond indices which are market weighted and thus own bonds in the most heavily indebted countries in the world.
I recently read an article penned by Jack Bogle (the founder of Vanguard Funds) in the CFA journal titled ‘The Arithmetic of “All-In” Investment Expenses’. You can find the article here.