Hasenstab ups Hungary exposure despite IMF warning

Franklin Templeton Investments' Michael Hasenstab has boosted exposure to Hungary in the $60bn Templeton Global Bond fund, meaning the overall company is likely to hold more than 10% of the country's government debt.

The increase comes as the IMF voices concerns about foreign investors holding large amounts of local debt, particularly in Hungary, and the impact of retrenchment. Last December, Investment Week reported Franklin Templeton Investments owned around 10% of Hungary's local bond market, which included a 4.3% exposure to Hungary through the Global Bond fund and a 6.4% allocation in the $494m Templeton Emerging Markets Bond fund. Since then, despite ongoing concerns Hungary is not taking the necessary steps to receive a bailout from the IMF and the European Union, Hasenstab has increased ex...