The fund was launched last Friday and has a range of share classes available across Europe.
The fund’s main objective is to earn a consistent, high level of income by investing in a diversified portfolio of higher yielding fixed income securities. It has the ability to invest 100% in low rated and non-investment grade bonds and will use an unconstrained approach.
As the director of the corporates/high yield group, Takaha’s portfolio management duties already include the Franklin Strategic Income, Franklin High Income, Franklin Institutional High Yield and Franklin Templeton Limited Duration Income Trust Funds.
His Global High Yield Fund, launched in 2007 has returned 34.99% over three years, compared to a sector return of 8.01% and over one year has returned 1.76% versus a sector loss of 4.71%.
“Templeton Global High Income Bond Fund follows a disciplined investment approach established over 30 years ago,” said Takaha. “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."
Co-managers on the fund will be Betsy Hofman, who runs the Franklin High Yield $ Fund and Patricia O’Connor who runs the Templeton Euro High Yield Fund.
Hofman’s fund has slightly trailed its peer group average over the past three years and in each discrete year, while O’Connor also lags the sector average over three years, despite beating her peers in 2010/11 and 2011/12.
