The new actively-managed funds are sub-funds of the Franklin Templeton Funds OEIC range.
The fees are 25bps for the gilt fund and 35 bps for the corporate bond fund through their respective W share class, with other charges capped at 10bps, meaning an OCF 35bps and 45bps respectively.
The London-based investment team for both funds consists of head of European fixed income and lead portfolio manager David Zahn, and portfolio manager Roderick MacPhee.
The Franklin UK Corporate Bond Fund will invest primarily in investment-grade fixed or floating-rate debt securities of UK companies with an aim to achieve returns through a combination of interest income and capital appreciation.
The Franklin UK Gilt Fund will target gilts and securities issued by the UK government but may invest up to 20% of its net asset value in other government bonds. It will seek to achieve capital preservation and a level of overall total return which reflects the underlying UK gilt market. The fund may invest in supranational and government-related issuers. All investments will be in investment grade securities.
Zahn said: “In a rapidly changing macro-economic environment, and further uncertainty on the horizon, demand for reliable income from different asset classes remains a high priority for UK investors. The UK economy has proven resilient in the past few months and despite warnings of a slowdown, fundamentals have strengthened since the decision to leave the EU, providing attractive investment opportunities.”
