Franklin Templton

USA

Franklin Templeton adds actively managed fixed income

Asset management giant Franklin Templeton is listing three new actively managed bond ETFs to buff up its low cost ETF suite. They are:

  • Franklin Liberty Senior Loan ETF (FLBL)
  • Franklin Liberty High Yield Corporate ETF (FLHY)
  • Franklin Liberty International Aggregate Bond ETF (FLIA)

FLBL would perhaps better be called a floating rate note ETF, as it will mostly buy floating rate notes, from both US and foreign issuers. Foreign companies debts are capped at 25% of the funds assets.

FLHY will walk on the wild side and invest in junk bonds from any country, in any currency and of any duration. The prospectus indicates the Franklin will use analysts to investigate which junk bonds it will buy and sell.

FLIA will, as its name suggests, invest in an aggregate of both floating and fixed rate bonds, from both corporate and government issuers in all developed countries. FLIA can invest in debts of any credit quality, but no more than 20% can be invested in junk.