Franklin Australian Absolute Return Bond Fund gets an upgrade
The Franklin Australian Absolute Return Bond Fund has been upgraded by Lonsec Research to a ‘Recommended’ rating, reflecting the research firm’s strong conviction in the fund following its recent fixed income sector review.
Closing in on a three-year performance track record and managed by local co-portfolio managers, Chris Siniakov and Andrew Canobi, the fund is an absolute return focused strategy that primarily invests in fixed income opportunities in the domestic market, with select exposures to the broader global universe of securities, and has a strong focus on protecting against capital volatility.
“In an environment where we are seeing potentially rising global yields and yet declining yields in Australia, taking an absolute return approach can help restore the defensive characteristics of the fixed income asset class”, says Siniakov.
According to Lonsec, “The two co-portfolio managers are seasoned investment professionals with a long history of working together. The investment team leverages the significant resources of the manager’s global fixed income platform and has demonstrated an ability to adhere consistently to their investment process.”
The fund’s investment team draws on the expertise of Franklin Templeton’s fixed income group, a global platform with over 170 investment professionals and more than 30 years of experience managing bond strategies.
Lonsec also noted: “The two investors have created a strategy that leverages their specialisation in macro and credit opportunities. The portfolio managers’ successful history of collaboration has helped Lonsec to gain confidence in their ability to effectively manage an investment team.”
Maria Wilton, Managing Director said: “We believe this upgrade recognises the deep experience and expertise of the team, the significant global resources of Franklin Templeton as well as the successful track record of the strategy since its inception in 2014.”
“Importantly, the fund provides a potential solution for the challenges facing many advisers and their clients today as they seek regular income and capital preservation in the fixed income sector,” Ms. Wilton added.
The fund also has an ‘Approved’ rating from Zenith and 4 Stars from SQM Research.
