Fixed Income  

Franklin Templeton launches short duration bond fund

Franklin Templeton has joined the growing list of asset managers launching funds investing in short duration bonds.

The group has launched the Franklin Euro Short Duration Bond fund, domiciled in Luxembourg but available to UK retail investors.

It will be managed by David Zahn, Franklin Templeton’s head of European fixed income, assisted by Rod MacPhee.

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The fund will invest in short-dated bonds, which are bonds that typically have a maturity date of less than 10 years.

Short duration funds have proven particularly popular with investors recently because they are expected to be less sensitive to interest rates rises.