Franklin Templeton Investments has launched the Franklin UK Corporate Bond fund and Franklin UK Gilt fund for the UK market.
The new actively-managed funds are sub-funds of the Franklin Templeton Funds (FTF) OEIC range and will be available at an annual management charge of 25 basis points (bps) for the UK Gilt Fund and 35 bps for the Corporate Bond Fund through their respective W share class, with other charges capped at 10bps (OCF 35bps and 45bps respectively).
The Franklin UK Corporate Bond fund will invest primarily in investment-grade fixed or floating-rate debt securities of UK companies with an aim to achieve total investment return consistent with prudent investment management, through a combination of interest income and capital appreciation.
The Franklin UK Gilt fund will primarily invest in gilts and securities issued by the government of the United Kingdom. It will seek to achieve capital preservation and a level of overall total return which reflects the underlying UK gilt market. The fund may invest up to 20% of its net asset value in other government bonds. In addition, the fund may invest in supranational and government-related issuers. All of the fund’s investments will be in investment Grade securities.
Based in London, the investment team for both funds consists of David Zahn, lead portfolio manager and head of European Fixed Income and Roderick MacPhee, portfolio manager at Franklin Templeton fixed income group.
Commenting on the fund launches, David Zahn said: “In a rapidly changing macro-economic environment, and further uncertainty on the horizon, demand for reliable income from different asset classes remains a high priority for UK investors. The UK economy has proven resilient in the past few months and despite warnings of a slowdown, fundamentals have strengthened since the decision to leave the EU, providing attractive investment opportunities.”