Franklin US High Yield

A focused U.S. high-yield investment strategy, diversified across issuers and sectors, that seeks to exploit market inefficiencies over the course of a full credit cycle through diligent bottom-up selection and opportunistic active management

OVERVIEW

STRATEGY SUMMARY

  • The strategy seeks to identify compelling total return opportunities with the potential to add value through individual issue selection and industry positioning.
  • The high yield team’s investment approach to the U.S. high yield corporate bond market focuses on fundamental, relative value analysis of large companies’ in relatively stable industries within the high yield markets in hopes of identifying those securities the team believes may offer the best risk-adjusted total returns.
  • Securities are purchased with a long-term outlook, as portfolio managers seek to maximize the portfolios’ benefits over time.

BENCHMARK

  • Credit Suisse High Yield Index

COMPOSITE PROFILE

A multi-page overview highlighting the composite performance, portfolio characteristics, investment process, management team and commentary.

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High-yield bonds historically have had a low correlation with equities and investment-grade bonds. A diversified portfolio consisting of security classes with low correlation can help protect a portfolio against systematic (market) risk.”

OUR APPROACH

Investment Philosophy

We believe that strong high-yield returns can be best captured through the disciplined application of a research-based approach that capitalizes on inefficiencies across the high-yield market. Through rigorous bottom-up research, we seek to identify compelling income and total return opportunities with the potential to add value over a three- to five-year horizon.

Investment Process Summary

  • Fundamental analysis: Conduct independent, bottom-up analysis focusing on critical factors that affect a company’s long-term performance, such as financial structure, cash flow and earnings prospects, products, market share and strategic positioning.
  • Long-term outlook: Analyze securities whose projected return over three to five years may surpass the risk of adverse price movements or default.
  • Seek valuation inefficiencies: Opportunistically invest in companies in sectors that are infrequently followed or are out of favor with the marketplace as well as take advantage of dislocations for high-yield bonds across currencies.
  • Disciplined approach: Adhere to long-term strategy through changing market environments, supported by analysis and monitoring from Franklin Templeton’s internal risk management group.
  • Integrated Research Approach: High Yield Team leverages the insights of other fixed income and equity investment professionals throughout the firm.

OUR TEAM

Glenn Voyles

Glenn Voyles, CFA
Senior Vice President, Director of Portfolio Management,
Corporate & High Yield Group Franklin Templeton Fixed Income Group
With firm since: 1993

Piero del Monte

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

Matt Fey

Matt Fey
Director of Research, Corporate Bonds,
Franklin Templeton Fixed Income Group
With firm since: 1998