Franklin Templeton has bolstered its European fixed income range by launching a Luxembourg-registered Franklin Euro Short Duration Bond Fund for retail investors in the UK.
The fund has been designed to invest primarily on short-dated fixed and floating-rate debt securities from both corporates and sovereign issuers.
The fund will be run by David Zahn, head of European Fixed Income and lead portfolio manager, alongside Rod MacPhee, research analyst and portfolio manager at Franklin Templeton Fixed Income Group.
The fund may purchase securitised debt and certain financial derivatives such as credit default swaps and currency forwards.
Additionally, the fund will seek to preserve capital and liquidity across the European short-duration universe with an investment philosophy based on a portfolio built around a diversified set of actively managed positions to generate the most attractive risk/return profile over a full market cycle.
Zahn said: "We believe it is an opportune time to launch this Fund as European short duration securities provide portfolio insulation and opportunity for enhanced return in rising rate environments.
"The Franklin Euro Short Duration Bond Fund is suitable for investors looking for an actively-managed portfolio designed to help reduce overall portfolio risk," Zahn added.
Jamie Hammond, managing director, Europe at Franklin Templeton Investments, said: "The Fund has been launched in response to client demand from continental Europe and will fill a natural product gap in Franklin Templeton’s European fixed income product range."