Bringing you live news and features since 2006 

UK flag

Franklin Templeton launches Absolute Return Bond Fund for UK investors


Franklin Templeton Investments has launched the Franklin Absolute Return Bond Fund, a sub-fund of our UK-registered OEIC, for UK investors.

The fund will be managed by San Mateo based David Yuen, Senior Vice President, Portfolio Manager, Franklin Templeton Fixed Income Group, and New-York based Michael J Materasso, Senior Vice President, Franklin Templeton Fixed Income Group.
The aim of the fund is to provide an absolute return, through a combination of income and capital growth, each calendar year. In addition, the Fund aims to provide an overall return of 2-3 per cent above the London Interbank Offered Rate (LIBOR) 90 Day (GBP) over a full market cycle (being 3-5 years) after management fees are deducted. Additionally, the strategy aims to maximise risk-adjusted returns while minimising drawdowns.
This fund launch provides UK investors access to the proven strategy offered globally through the US-registered and Luxembourg-registered Franklin Flexible Alpha Bond Funds, which collectively have assets under management of USD900 million.
The Franklin Absolute Return Bond Fund is benchmark-unconstrained and will invest primarily in a diversified portfolio of fixed and floating rate debt securities and related derivatives.
David Yuen, Senior Vice President, Portfolio Manager, Franklin Absolute Return Bond Fund, says: “We are excited to bring this strategy to UK investors and offer an unconstrained, risk focused approach where volatility is managed. Our investment process leverages the in-depth knowledge of our experienced fixed income teams globally and our approach with dynamic sector rotation, active currency management, security selection and relative value positioning, while aiming to manage risks such as duration.”
Alex Brotherston, Head of UK Retail Sales, says: “We’ve seen a growing demand for outcome investing as investors look for alternatives to traditional fixed income mandates that don’t rely solely on interest rate movements for performance. The Franklin Absolute Return Bond Fund offers a flexible mandate that brings diversification to both the returns and risk profile of an investor’s fixed income allocation.
“We believe this fund will appeal to investors who are looking to diversify and complement the core fixed income portion of their portfolios, whilst accessing pure alpha and hedging their portfolios to mitigate downside volatility which is inherent in long-only strategies.”

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by