Franklin Templeton Investments has brought together fund managers from across the high yield bond universe in order to launch a dedicated global high income fund.
The fund can invest in bonds, mortgage or asset-backed securities, convertibles, real estate investment trusts, collateralised loan obligations and structured notes and will also include emerging market issued bonds.
At present, Betsy Hofman runs the firm’s $3.85 billion US high yield product, the Franklin High Yield fund. Patricia O’Connor represents the European high yield market, where she currently co-manages the $660 million Templeton Euro High Yield fund with Piero Del Monte.
Meanwhile, Takaha operates in both the global bonds and global high yield sectors.
Commenting on the fund launch, Takaha said: ‘We believe that superior high-yielding returns are best captured through a research-driven approach that capitalizes on inefficiencies across the global high yield markets.’
‘The best return opportunities can sometimes be found in those companies or sectors that are out-of-favour or are under-followed in the market place.’
In addition to the three lead managers, the fund will also draw on the expertise of the 20 members of the dedicated high-yield fixed income team of managers, research analysts, research associates and traders