Franklin Templeton has launched its Franklin Global Low Volatility Bond fund with Hang Seng Bank serving as distributor in Hong Kong.
The fund, which is managed by Chris Siniakov, Andrew Canobi and Joshua Rout, aims to find yield in high-quality global bonds. It invests at least 65% of its net asset value in investment grade debt securities issued by governments, government-related entities, including supranational organisations supported by several national governments
It also emphasises active duration management to ensure that portfolio volatility is controlled within the target limit.
“The fund focuses on high-quality assets within global bond markets which have historically exhibited lower volatility, offering a strong foundation for long-term investment strategies and potentially greater resilience through periods of market volatility,” said Simon Wong, co-head of Hong Kong and head of retail sales for Greater China at Franklin Templeton.
“Designed to capture income opportunities for investors, the fund will endeavor to maximise total investment return, combining consistent dividend income with long-term capital appreciation.”
“Overall, we believe that the global bond index is on an upward trajectory, offering numerous yield opportunities. We are confident that the Franklin Global Low Volatility Bond fund can help meet investors’ desire for global yield opportunities in different market segments,” said Siniakov.