Franklin European High Yield

The strategy aims to earn a high level of current income—with capital appreciation as a secondary objective—by uncovering opportunity in under-researched areas of the European fixed income market. This strategy can offer a potentially attractive complement to core fixed income.

OVERVIEW

STRATEGY SUMMARY

  • Invests primarily in below investment grade or floating rate debt securities issued by European corporations.
  • Maintains flexibility to invest outside of the Eurozone and to seek out the best opportunities across sectors unconstrained by benchmark allocations.
  • Employs the same fundamental, value-driven research-based approach to investing that is a hallmark of Franklin Templeton strategies.

BENCHMARK

  • BofA Merrill Lynch Euro High Yield Constrained Index

Rigorous bottom-up analysis is at the core of our approach to high yield investing. Buy and sell decisions are made opportunistically, with each individual security being screened through a disciplined process in order to ensure fit within the overall portfolio strategy.”

OUR APPROACH

Investment Philosophy

We believe that by focusing on opportunistic security selection in European high yield bonds, which have historically shown low correlation to other fixed income sectors, the strategy can offer a potentially attractive source for overall portfolio diversification. 

Investment Process Summary

  • Identify best opportunities: collaborative idea generation; analysts develop Buy List and industry recommendations.
  • Construct and manage portfolio: Security selection; sector allocation; portfolio structure; benchmark analysis.
  • Conduct ongoing portfolio review: Risk management systems; Portfolio Review Committee; holdings surveillance.

OUR TEAM

Patricia O’Connor

Patricia O’Connor
Vice President, Portfolio Manager
Franklin Templeton Fixed Income Group
With firm since: 1997

Piero del Monte

Piero del Monte
Portfolio Manager, High Yield Bond Research Analyst
Franklin Templeton Fixed Income Group
With firm since: 2007