Franklin Templeton has launched a pair of bond funds, targeting global corporate high yield and the sovereign debt market, Citywire Global can exclusively reveal.
The two funds are being made available through the US-based firm’s Luxembourg-domiciled SICAV and were officially launched at the start of September 2013.
The first of the two funds is the Franklin Global Corporate High Yield Bond fund, which is managed by corporate and high yield credit specialist Eric Takaha.
This fund is aimed primarily at institutional investors and will invest across high yield bonds and floating-rate notes from both developed and developing world issuers.
Commenting on the launch, Takaha said: ‘We believe the best high yield opportunities are often found in those companies or sectors that are out-of-favour or are under-researched in the market place.’
‘Through rigorous bottom-up analysis, we look to identify inefficiencies across the global high yield corporate bond markets to target compelling total return opportunities that can add value over the course of a credit cycle.’
California-based Takaha currently co-runs four bonds across global bonds, US high yield and global high yield. He was previously pin-pointed by Citywire for being one of the best performing fund managers in global high yield over the past five years.
Global government bonds
It focuses on investment grade sovereign debt and is designed to offer investors portfolio stabilisation and diversification.
The fund may also take opportunistic bets on high quality corporate bonds. In addition, the duo may also make limited purchases of below investment-grade securities and obligations issued by emerging market governments.
‘Default rates on investment-grade sovereign debt remain at near zero,’ said John Beck.
‘Couple this with the positive trend in global gross domestic product (GDP) growth, the nascent recovery in Europe and the continued fiscal strength of many emerging markets, and we believe this may be an encouraging time for prudent investment in the asset class.’