Franklin Templeton launches new Franklin Global Low Volatility Bond Fund in Hong Kong.

Franklin Templeton announced the launch of a new Franklin Global Low Volatility Bond Fund in Hong Kong. The fund is currently distributed by Hang Seng Bank (00011) and is managed by Chris Siniakov, Andrew Canobi, and Joshua Rout from the Franklin Templeton Fixed Income team. It aims to focus on income opportunities from high-quality global bonds. The Franklin Global Low Volatility Bond Fund is managed by a professional and experienced fixed income team, with at least 65% of its net assets invested in investment-grade bonds issued by governments, government-related entities (including supranational institutions supported by multiple governments). The design of this low volatility strategy is to provide income opportunities in the global market while emphasizing active duration management to help keep the portfolio volatility within the target range. Mr. Kelvin Tam, Co-Head of Franklin Templeton Hong Kong and Head of Retail Sales for Greater China, expressed his excitement about the launch of the Franklin Global Low Volatility Bond Fund in Hong Kong, highlighting the commitment to providing investors with low volatility investment options to address the current market environment. The fund focuses on high-quality assets in the global bond market, historically characterized by low volatility, laying a solid foundation for long-term investment strategies and potentially exhibiting greater resilience and defensive capabilities during market volatility. Mr. Tam stated that the fund aims to capture income opportunities for investors, striving to maximize total investment returns, including regular dividend income and long-term capital appreciation. The fund offers a monthly dividend distribution share class, aiming to distribute dividends monthly. Dividends are not guaranteed. The fund may distribute dividends from its capital. Currently, the fund is available through Hang Seng Bank to different investors, and they look forward to working with more distributors in the near future to expand their distribution network. Chris Siniakov, Director of the Franklin Templeton Fixed Income team, mentioned that entering 2025, the U.S. economy is expected to maintain strong growth momentum. The reelection of U.S. President-elect Trump is expected to provide strong support for the U.S. market due to significant changes in economic policies. Profitable tax cuts and deregulation measures, along with positive macroeconomic fundamentals, will promote investment and economic growth. Additionally, U.S. Treasury bonds have shown relative stability within a year following the first rate cut by the Federal Reserve. Furthermore, Chris Siniakov mentioned that non-U.S. corporate credit and emerging market bonds may be affected by significant changes in U.S. policy. Therefore, the team's investment strategy will focus on selecting issuers and industries that are less affected by U.S. policy fluctuations to some extent. Overall, Chris Siniakov expressed confidence in the upward trend of the global bond index, providing numerous income opportunities. He believes that the Franklin Global Low Volatility Bond Fund can help meet the needs of investors seeking global income opportunities in different market sectors.