Franklin Templeton has launched an investment grade bond fund for portfolio manager Sonal Desai, Citywire Global can reveal.
The Templeton Constrained Bond fund will be overseen by Desai, who is also a director of research within the group’s international bond department, while Christine Zu will serve as a co-manager.
Desai will focus principally on fixed or floating rate debt securities, including non-investment grade bonds, as well as debt issued by government or government-related entities worldwide.
In addition, Desai has the ability to purchase bonds issued by supranational entities organised or supported by several national governments, such as the International Bank for Reconstruction and Development or the European Investment Bank.
Investment grade bonds will form the cornerstone of Desai’s investments, although up to 15% of the fund’s net assets may be invested in non-investment grade securities.
Franklin Templeton said the fund is designed for investors seeking income with capital appreciation while aiming to manage volatility and diversify their equity and fixed income portfolios.
It employs a bottom-up, research-driven process, as well as operating a benchmark-agnostic investment style.
This prioritises fundamental, country-by-country macroeconomic research that entails quantitative analysis, macro-analytic models, local market insight, and risk management.