Franklin Templeton Launches Franklin Long Duration Credit Fund

Franklin Templeton announced today the launch of Franklin Long Duration Credit Fund, which seeks to maximize risk-adjusted returns through a combination of income and capital appreciation. The Fund, which was established based on client interest, is designed to offer exposure to longer maturity investment grade fixed income securities and provides investors access to this type of strategy, which is more commonly offered in separately managed accounts or comingled trust vehicles.

The Fund is managed by Franklin Templeton Fixed Income portfolio managers Josh Lohmeier, CFA, Michael Cho, CFA and George Bailey, CFA. The investment team uses a proprietary portfolio construction approach seeking to produce an additional source of alpha alongside sector allocation and security selection and strives for a lower correlation to the benchmark through a custom sector framework and distinctive risk/return profile.

“Portfolio construction sets this strategy apart from peers and is a key driver of non-correlation,” said Lohmeier. “Our time-tested process strives to add value by creating a more efficient portfolio and allocating to the best credit ideas. Risk management is considered at all stages of the portfolio construction process, and portfolios are stress tested to ensure they are structurally designed to mitigate risks and deliver more favorable outcomes in adverse credit markets.”

Franklin Long Duration Credit Fund will invest at least 80 percent of its net assets in fixed income securities predominantly in US dollar-denominated, investment grade securities—although they may be issued by a foreign corporation, a US affiliate of a foreign corporation, a foreign government or its agencies and instrumentalities or a supranational organization. The Fund’s investments may include various types of bonds and debt securities, including corporate bonds, notes, US money market securities, municipal securities, US government and agency obligations, cash, private placements and restricted securities. The Fund may also enter into exchange-traded derivative transactions, consisting of investments in US Treasury future contracts, for hedging purposes and to manage duration or cash flows.